Mapping the Financial Literacy Deficit Among Student Entrepreneurs in Higher Educational Institutes: A Study of Colleges in Hyderabad

Abstract

India's higher educational landscape is producing thousands of aspiring entrepreneurs every year. Yet, a troubling question persists beneath the surface of this startup optimism: do these young, ambitious individuals actually understand the financial language of the business world they so eagerly wish to enter? This study attempts to answer that question honestly and empirically, with a ground-level focus on colleges in Hyderabad — one of India's fastest-growing tech and startup hubs.

This paper maps the financial literacy deficit among students enrolled in higher educational institutes (HEIs) in Hyderabad, with particular attention to two critical dimensions: the structural failures in entrepreneurship curricula that leave students financially underprepared, and the emerging role of digital financial literacy in shaping entrepreneurial risk-taking and venture creation. Drawing on primary survey data from 205 student respondents, literature from emerging economies, and the contextual backdrop of India's current economic environment — including SEBI's push for investor education, the UPI-driven fintech boom, and the Startup India ecosystem — the study reveals a meaningful and concerning gap between entrepreneurial ambition and financial competence.

The findings underscore the urgency of embedding finance-integrated learning within entrepreneurship programs at Hyderabad's colleges, and offer recommendations for both institutional curriculum design and policy-level intervention.