EMPOWERING FINANCIAL AND DIGITAL LITERACY TO BUILD RESILIENCE OF MSMES: PROPOSED IMPLEMENTATION IN BANDUNG CITY

• Main Author: Rizki, Ana
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86543
• Institution: Institut Teknologi Bandung

This study investigates the factors influencing financial and digital literacy among micro, small, and medium enterprises (MSMEs) in Bandung City. Employing a qualitative research methodology, the study conducts semi-structured interviews with 5 key stakeholders, including representatives from banks, the MSME Office, entrepreneurs, business incubator, and the Financial Services Authority (OJK). The research reveals significant gaps in financial literacy, particularly in systematic financial management and reporting, which hinder MSMEs' access to credit and growth opportunities. Many entrepreneurs rely on simple financial calculations and struggle with creating accurate financial reports. Digital literacy challenges, including limited adoption of digital technologies and unequal internet access, further impede MSMEs' participation in the digital economy. Key barriers identified include the difficulty in changing established financial habits, limited mentorship availability, and budget constraints in implementing support programs. The study highlights the importance of financial education, noting that even businesses with substantial credit lines often lack comprehensive financial literacy. Based on these findings, the study proposes targeted interventions, including comprehensive financial education programs and digital skills training. The research emphasizes the need for collaboration between government agencies and financial institutions to improve financial inclusion and literacy. The study concludes by presenting a proposal for a Digital Creative Academy aimed at enhancing MSMEs' digital marketing capabilities, particularly in video content creation and live streaming on e-commerce platforms. This program targets 750 micro-business actors across 30 districts, addressing the urgent need for digital skills in the evolving market landscape. This research contributes to understanding MSME development challenges in Indonesia and offers practical recommendations for policymakers and educators to strengthen MSME resilience in the digital era. It underscores the critical role of both financial and digital literacy in fostering sustainable growth among MSMEs in Bandung City.