The impact of financial literacy on the performance and sustainability of SMEs in Indonesia

Amelia, Yunia; Nauli, Pigo; Desriani, Neny

doi:10.1201/9780367853778-77

Cited by 2 publications

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The ability and knowledge of financial products and services in the financial market is supported by the financial literacy possessed by business owners. Financial literacy plays a role in business sustainability (Winarsih, Mutoharoh, Tahar and Azis, 2020;Amelia, Nauli and Desriani, 2020;and Jati, Rosary, Maggidae and Makatita, 2021), by providing the ability for business owners to make strategic investment decisions in managing finances (Usamo and Yusoff, 2019). Based on these arguments, the hypothesis is as follows: H1: financial literacy has a significant positive effect on the sustainability of SME business.…”

Section: Relationship Between Financial Literacy and Business Continuitymentioning

confidence: 99%

“…This shows that when the financial literacy of business owners increases, it provides the potential for improvement in the sustainability of the SME business. Financial literacy possessed by SME business owners provides encouragement and strength to be able to maintain business or maintain business resilience in competition in their industry (Winarsih, Mutoharoh, Tahar and Azis, 2020;Amelia, Nauli and Desriani, 2020;and Jati, Rosary, Maggidae and Makatita, 2021). The finding is supported by resource based view theory which prioritizes internal strength or resources in facing competition and achieving competitive advantage.…”

Section: Businessmentioning

confidence: 99%

See 1 more Smart Citation

Sustainability and Performance of Small and Medium Business: the Role of Financial Literature

Parmitasari¹,

Rusnawati²

2023

J. Professional Business Review

View full text Add to dashboard Cite

Purpose: The purpose of this study is to examine the relationship between financial literacy, the sustainability of SMEs and the performance of SMEs. Theoretical framework: SMEs must have resilience and strength in maintaining the continuity of their business which is exposed to risks that must be faced (Kot, 2008 and Southiseng, and Walsh, 2010). Indicators of the success of SMEs can be measured through the business continuity of SMEs and the performance of SMEs. However, this has challenges, especially related to financial literacy in the use of financial products and services both digital and non-digital. Therefore, the study needs to be developed to gather more information about the role of financial literacy to the sustainability of SMEs and the performance of SMEs. Design/methodology/approach: This study uses quantitative research with primary data and secondary data. The population in this study were all SMEs and samples were taken using the saturated sample technique as many as 82 registered SMEs and 50 unregistered SMEs. The data analysis technique in this study used Structural Equation Modeling (SEM) with SmartPLS. Findings: The results of this study indicate the contribution of financial literacy to the SMES’s sustainability and performance. Financial literacy has a positive effect on the sustainability of SMEs. Research also shows that financial literacy has a positive effect on the performance of SMEs. Research, Practical & Social implications: The future research should highlight other essential factors that could contribute the SME’s sustainability and performance such as halal branding and label as trending factors nowadays. Originality/value: The results indicate the importance role of financial literacy on the sustainability and performance of SMEs especially SME’s financial management would determine the successful of SME’s livelihood.

show abstract

Section: Relationship Between Financial Literacy and Business Continuitymentioning

confidence: 99%

Section: Businessmentioning

confidence: 99%

Sustainability and Performance of Small and Medium Business: the Role of Financial Literature

Parmitasari¹,

Rusnawati²

2023

J. Professional Business Review

View full text Add to dashboard Cite

show abstract

“…Many students as the millennial generation have become successful young entrepreneurs by establishing innovative businesses and utilizing technology (Amelia et al, 2020;Morgan, 2022). Among the best example is Semarang State University (Unnes) as one of the universities that supports the development of young entrepreneurs by providing various entrepreneurship programs.…”

Section: Introductionmentioning

confidence: 99%

Financial Literacy and Its Effect on Business Performance of Student-Driven Entrepreneurship in The Covid 19 Pandemic

Rachmawati

Ardiansari²,

Kriswanto³

2022

ijbe

View full text Add to dashboard Cite

The objective of this research is to empirically examine the role of financial literacy and its influence on business performance in the university entrepreneurial students. The research population is entrepreneurship students at Universitas Negeri Semarang (Unnes) with a total of 1215 SMEs with the sample being 105 respondents. The collected data were analyzed using a structural equation model based on Partial Least Squares. The analytical tool used is Smart PLS 3.0 software. The results found that several obstacles faced by student-operated SMEs were found lack of knowledge about business management, especially finance, lack of professional assistance, time allocation constraints that clashed with lectures and motivational constraints to always be consistent in entrepreneurship. The results of the study concluded that financial knowledge, financial attitudes and financial behavior each had a positive effect on the entrepreneurial business performance of studentoperated SMEs. The results underscored the need for social support from the universities to boost financial entrepreneurship and financial literacy among entrepreneurial students.

show abstract

The impact of financial literacy on the performance and sustainability of SMEs in Indonesia

Cited by 2 publications

References 0 publications

Sustainability and Performance of Small and Medium Business: the Role of Financial Literature

Sustainability and Performance of Small and Medium Business: the Role of Financial Literature

Financial Literacy and Its Effect on Business Performance of Student-Driven Entrepreneurship in The Covid 19 Pandemic

Contact Info

Product

Resources

About