The Antecedents of Saving Behavior and Entrepreneurial Intention of Saudi Arabia University Students

Abstract

Saving has been identified as an essential source for investments that eventually leads to the growth and development of the economy and contributes to the creation of new job opportunities. Accordingly, this study investigated the antecedents of saving behavior, i.e., financial literacy, parents' effect, peer influence and self-control and their impact on saving behavior of students at the community college of Abqaiq in Saudi Arabia. It also examined the impact of saving behavior on developing their entrepreneurial intention. The sample of the study was collected via a self-administrated questionnaire sent to 270 students at the community college of Abqaiq in Saudi Arabia. The data was then analyzed with the help of SMART-PLS-SEM. The findings reported that financial literacy, parents' effect, and peer influence significantly positively influence saving behavior.  In contrast, self-control has a significant negative impact on saving behavior. On the other hand, saving behavior also substantially affects the students' entrepreneurial intention to start small entrepreneurial enterprises. The study adds to the existing literature on crucial factors affecting individuals' saving behavior, particularly Saudi Arabia students. In addition, it confirms the impact of accumulated savings on the entrepreneurial intention of the targeted group.