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How does MSMES’ Financial Behaviour Influence Financial Literacy?

In: Proceedings of the 2nd International Conference on Management and Business (ICOMB 2023)

Author

Listed:
  • Alfiatul Maulida

    (Universitas Sarjanawiyata Tamansiswa)

  • Aulia Nurafina

    (Universitas Sarjanawiyata Tamansiswa)

Abstract

There are around 64.19 million MSME participants, contributing 61.07% of GDP, or over Rp 8,573 trillion, and 97% of employment. The research demonstrates that one factor bolstering the Indonesian economy is the quantity of MSMEs that are now operating. The obstacles that currently face Indonesia's growing MSMEs will persist. According to the Indonesian Micro and Small Entrepreneurs Association's chairman, one of the reasons MSMEs haven't developed is a lack of financial literacy. In order to improve MSME management and output, this research seeks to ascertain the truth about financial behavior influencing the financial literacy of MSME actors. A sample of thirty-two MSME actors in Yogyakarta City were given questionnaires, and the inner and outer models were tested using the Smart PLS application. The findings demonstrated that MSME actors’ financial activity had a major impact on their level of financial literacy..

Suggested Citation

  • Alfiatul Maulida & Aulia Nurafina, 2024. "How does MSMES’ Financial Behaviour Influence Financial Literacy?," Advances in Economics, Business and Management Research, in: Budi Setiawan & Nurul Myristica Indraswari (ed.), Proceedings of the 2nd International Conference on Management and Business (ICOMB 2023), pages 59-67, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-402-0_7
    DOI: 10.2991/978-94-6463-402-0_7
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