THE ROLE OF FINANCIAL LITERACY AS A STIMULUS AND MODERATOR OF ACCESS TO FINANCE AND BUSINESS GROWTH (A CASE STUDY OF MSMEs IN BANDUNG CITY)

• Main Author: BHAHESTI/29116120, AKBAR
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25257
• Institution: Institut Teknologi Bandung

The purpose of this study is to prove the important role of financial literacy in access to finance and business growth of MSMEs. This study wants to show that financial literacy does not only has a relationship and influence on access to finance and business growth but also able to be a moderator of the relationship between access to finance and business growth of MSMEs. This study used 250 MSMEs which are located in Bandung as the research subjects, while the research methods are correlation, simple regression and moderated regression analysis (MRA). The study also added some additional analysis. The findings show that financial literacy has a positive relationship and influence on access to finance and business growth of MSMEs. In addition, the findings prove that financial literacy is the moderator of the relationship between access to finance and business growth. This study is limited to examine the MSMEs which are located in Bandung city only. However, this research can be a source for further research in other regions. The implications of this research are to provide recommendations and solutions to MSME problems in the form of planned programs to improve the financial literacy, access to finance and business growth.