The Impact of Founder’s Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia

Gusman, Nakita; Soekarno, Subiakto; Mirzanti, Isti Raafaldini

doi:10.26905/jkdp.v25i3.5799

Cited by 2 publications

(7 citation statements)

References 10 publications

(16 reference statements)

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“…According to the results of research by Gusman et al (2021), men and women have an average score of financial literacy that is almost the same, the results show that men have a greater opportunity to have a positive impact on MSME performance because the average financial literacy score in men is 10 points higher. On the other hand, the education and majors of the founders have no significant effect on the performance of MSMEs; what matters is their financial knowledge.…”

Section: Introductionmentioning

confidence: 95%

“…Financial activity, in which the owner of an MSME plays an important role in the decision-making process, is one of the performance characteristics of small and medium-sized enterprises. Marketing, human resources, excellent governance, and operations are nonfinancial factors that affect the performance of MSMEs (Gusman et al, 2021). Financial literacy training among microenterprises in Kenya has a significant positive impact on their performance.…”

Section: Msme Performancementioning

confidence: 99%

“…These results are similar to several other studies where the performance of the MSMEs founders lead is influenced by their behavioral characteristics and financial literacy. Confidence, impulsivity, and financial action are some qualities that might affect how someone makes decisions in their work life (Gusman et al, 2021;Purwidianti & Tubastuvi, 2019;Usama & Yusoff, 2019).…”

Section: Evaluate Model Measurementsmentioning

confidence: 99%

“…According to a World Bank survey of 190 countries, Indonesia is ranked 73rd with a score of 69.2. Meanwhile, Singapore is ranked second with a score of 86.2, Malaysia is ranked 12th with a score of 81.5, and Thailand is ranked 21st with a score of 80.1 in other ASEAN countries (Gusman et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, technological progress and human resource advancement have become the two main drivers for long-term economic and social development as well as global leadership in all aspects of contemporary countries (Gusman et al, 2021). Competition in international markets has historically been the domain of large companies, while small and medium enterprises are local or regional.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Financial literacy, digital transformation adoption, and their significance to the MSMEs performance in Bandung city

Rahmawati

Thaha

Priyanto

2023

JMBK

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Financial and digital literacy has been recognized as a crucial information resource for financial decision-making, but the impact of MSME’s financial and digital literacy on sustainability has received little attention. This study intends to examine the growth of MSME’s financial knowledge and technology adoption-related obstacles. A solid business foundation, which is sorely needed, can be created by training MSMEs about financial and digital literacy in a systematic, integrated, and sustainable way. This study is quantitative research considering it employs descriptive statistical analysis of numerical data, especially the partial least square method, to examine the impact of financial and digital literacy on the performance of MSMEs. The 237 respondents in Bandung who participated in a self-administered survey were used to get the data during the third quarter of 2022. The study proved that the performance of entrepreneurs was statistically influenced by financial literacy and digital transformation adoption. Comparing the two major attributes, digital transformation has a higher score in impacting the MSME’s performance. Bandung is one of the key pillars of the local economy, especially MSMEs where performance is affected majorly by digital transformation adoption. Literasi keuangan dan digital telah diakui sebagai sumber informasi penting untuk pengambilan keputusan keuangan, tetapi dampak literasi keuangan dan digital UMKM terhadap keberlanjutan kurang mendapat perhatian. Penelitian ini bermaksud untuk mengkaji pertumbuhan pengetahuan keuangan UMKM dan hambatan terkait adopsi teknologi. Fondasi bisnis yang kokoh, yang sangat dibutuhkan, dapat diciptakan dengan melatih UMKM tentang literasi keuangan dan digital secara sistematis, terintegrasi, dan berkelanjutan. Penelitian ini merupakan penelitian kuantitatif mengingat menggunakan analisis statistik deskriptif data numerik, khususnya metode Partial Least Square, untuk mengkaji dampak literasi keuangan dan digital terhadap kinerja UMKM. Ke-237 responden di Bandung yang mengikuti survei swakelola digunakan untuk mendapatkan data selama kuartal III-2022. Studi ini membuktikan bahwa kinerja wirausahawan secara statistik dipengaruhi oleh literasi keuangan dan adopsi transformasi digital. Membandingkan dua atribut utama, transformasi digital memiliki skor yang lebih tinggi dalam mempengaruhi kinerja UMKM. Bandung merupakan salah satu pilar utama perekonomian lokal, khususnya UMKM dimana kinerjanya sangat dipengaruhi oleh adopsi transformasi digital.

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Section: Introductionmentioning

confidence: 95%

Section: Msme Performancementioning

confidence: 99%

Section: Evaluate Model Measurementsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Financial literacy, digital transformation adoption, and their significance to the MSMEs performance in Bandung city

Rahmawati

Thaha

Priyanto

2023

JMBK

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The Mediating and Moderating Effect on Smes' Performance: Does Religiosity Matter?

Lestari,

Lindiawati,

Ulum

et al. 2023

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Small and medium enterprises (SMEs) are entities managed and controlled by the owners. The performance of the owners strongly reflects the business performance of the SMEs. That is also the way of looking into the study aiming at analyzing the performance of SMEs from an Islamic perspective, which can be viewed from the owners' religiosity and financial behaviour. This framework is still rarely found in shari'a economics literature. This also involves further consideration of the need for Islamic values on the performance of small businesses in countries with Muslim-majority. Using a survey research design, 238 small business owners and managers participated in responding to a self-registered questionnaire research instrument. Using PLS-SEM, the research instrument has been tested for its validity and reliability and the variable's influence. The result proves that religiosity does not directly affect the performance of SMEs but indirectly influences the performance through financial behaviour. It means that religiosity forms good financial behaviour, and then the financial behaviour increases business performance. This study also finds that gender moderates the effect of religiosity on the behaviour of SME owners or managers. Furthermore, business age reduces the effect of financial behaviour on performance. The results of this study warn that old businesses should not make SMEs owners feel comfortable and resistant to change unless they fail to gain good business performance.

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The Impact of Founder’s Financial Behavior Traits and Literacy on SMEs Performance: Empirical Evidence from SMEs in Indonesia

Cited by 2 publications

References 10 publications

Financial literacy, digital transformation adoption, and their significance to the MSMEs performance in Bandung city

Financial literacy, digital transformation adoption, and their significance to the MSMEs performance in Bandung city

The Mediating and Moderating Effect on Smes' Performance: Does Religiosity Matter?

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