Sarcouncil Journal of Economics and Business Management

Abstract: This study explores the nexus between entrepreneurial finance and value creation in modern enterprises, emphasizing the mediating role of innovation and the moderating influence of financial literacy. Using a mixed-method approach combining quantitative analysis of 120 enterprises with qualitative insights from interviews, the study examines how different financing mechanisms; venture capital, angel investment, crowdfunding, and private equity contribute to firm growth, innovation performance, and profitability. The results reveal that venture capital and angel investment significantly enhance enterprise value, with innovation partially mediating the relationship between entrepreneurial finance and performance outcomes. Financial literacy further strengthens this relationship by improving the efficiency of financial resource utilization and strategic decision-making. Structural Equation Modeling (SEM) confirms the robustness of the finance-innovation value creation linkage, while thematic analysis highlights the importance of investor collaboration, transparent communication, and flexible funding strategies. Overall, the study underscores that entrepreneurial finance acts not only as a source of capital but also as a strategic enabler of innovation and sustainable growth in the modern business landscape.