Abstract. This study explores the relationship between entrepreneurial skills and financial risk tolerance among ambulant vendors operating in informal economies. Focusing on key competencies such as self-competency, risk management, and control focus, the research aims to determine how these skills influence vendors’ willingness to engage in financial risks, a vital factor for business growth and sustainability. Data collected from 152 ambulant vendors in Agusan del Sur was analyzed using Pearson’s correlation and multiple regression. The results show a strong positive correlation between entrepreneurial skills and financial risk tolerance, with self-competency emerging as the most influential factor. With higher self-efficacy, entrepreneurs are more sure of handling financial uncertainty and grabbing chances. The study emphasizes acquiring entrepreneurial competencies to improve financial decision-making and corporate resilience. It also emphasizes the importance of focused training initiatives to improve these competencies, therefore providing information for stakeholders and legislators endorsing unofficial economies.

Keywords: Entrepreneurial skills; Financial risk; Self-competency; Risk-taking behavior correlation; Sustainable business growth.