ANALYSIS OF FINANCIAL LITERACY INDICATORS ON THE PERFORMANCE OF SMES IN THE CITY OF BANDUNG

• Main Author: Maswin
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75350
• Institution: Institut Teknologi Bandung

Bandung is an active city in Indonesia in promoting innovation, business creation, and mentoring small businesses. One of the efforts made is to provide mentors to develop MSME businesses. In addition, Bandung City also holds various business coaching programs for MSME actors. Thus, MSMEs in Bandung City can develop their business better. There are many problems faced by MSMEs, but one of the problems they often convey is related to how to manage business finances. Many of them do not understand how to manage their business finances because their financial literacy is still low. Therefore, the aim of this research is to find out which indicators of financial literacy have the greatest influence on the performance of MSMEs. As for the population in this study, all SMEs in the city of Bandung totaled 8,662. Then a sample of 199 MSMEs in the city of Bandung was taken using the slovin formula. Furthermore, a questionnaire was distributed containing statements from all samples as a data collection method. For data processing methods using instrument tests, classical assumption tests and hypothesis testing such as multiple linear regression, partial test and coefficient of determination. With the increase in financial knowledge and after an analysis related to how the influence of financial literacy on MSME performance, partial results were obtained between financial knowledge, financial behavior and financial attitudes to MSME performance had a positive and significant effect, this is proven by a partial test to produce a significance level of <0.05 or also evidenced by t arithmetic financial knowledge 8.887> t-table 1.653. Then, the t-count value of financial behavior 7.529> t-table 1.653. And lastly, the t-count value of financial attitudes is 9.756 > t-table 1.653. As well as for the test results of the coefficient of determination for literacy the effect of financial literacy on financial performance is 88.5% and the rest is influenced by other variables.