The 5Cs framework and entrepreneurial intention: The role of credit management understanding in Thailand
Abstract
Objective: This article identifies the influence of financial management understanding within the 5Cs framework (character, capacity, capital, collateral, and conditions) on entrepreneurial intention (EI). The article addresses the limited application of the 5Cs framework in explaining entrepreneurial behaviour in developing economies such as Thailand. Research Design & Methods: We applied a quantitative approach using survey data from 462 respondents in Bangkok and its metropolitan area. We analysed the data using confirmatory factor analysis (CFA) and structural equation modelling (SEM). We assessed instrument reliability and validity and applied procedures to control potential common method bias. Findings: The proposed model explains entrepreneurial intention effectively. Capital and conditions have positive and significant effects on EI, whereas character, capacity, and collateral are not statistically significant. These findings highlight the importance of financial resources and economic conditions in shaping entrepreneurial decisions in Thailand. Implications & Recommendations: Improving access to financial capital and maintaining a stable economic environment are essential for encouraging entrepreneurial intention. Policymakers should simplify regulations and provide financial incentives for new ventures. Educational institutions should strengthen training in capital access strategies and financial planning, while financial institutions may reconsider credit evaluation practices to better support potential entrepreneurs. Contribution & Value Added: This article extends the theory of planned behaviour (TPB) and the resource-based view by incorporating the 5Cs framework into the analysis of entrepreneurial behaviour. It proposes a structural model explaining how financial understanding and economic conditions influence entrepreneurial intention in developing economies and provides insights for policymakers, educators, and financial institutions.