The Contribution of Economic Literacy, E-Commerce, and Income Expectations Towards the Formation of Entrepreneurial Interests in Generation Z Students

Abstract

This study examines the contribution of economic literacy, e-commerce utilization, and income expectations to the formation of entrepreneurial interest among Generation Z students. A quantitative approach was employed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to analyze data collected from 102 Grade XII accounting students through a structured questionnaire. The results indicate that e-commerce has a significant positive effect and serves as the most dominant factor influencing students’ entrepreneurial interest. The accessibility of digital platforms, ease of online transactions, and wider market opportunities encourage students to consider entrepreneurship as a viable career path. Conversely, economic literacy and income expectations demonstrate significant negative effects on entrepreneurial interest. Higher levels of economic understanding and elevated income expectations tend to make students more cautious and risk-aware, potentially reducing their willingness to pursue entrepreneurial ventures without sufficient practical experience. The model explains 93.1% of the variance in entrepreneurial interest, indicating strong explanatory power. These findings suggest that while digital technology plays a strategic role in fostering entrepreneurial intentions, entrepreneurship education should balance theoretical knowledge with experiential learning and mentoring to cultivate a more adaptive entrepreneurial mindset. Integrating digital business practices and practical entrepreneurial experiences into vocational education may help transform economic literacy and income expectations into supportive rather than inhibiting factors for entrepreneurial development among Generation Z students.