Exploring Financial Literacy in SMEs: A Comprehensive Bibliometric Analysis

Financial literacy and inclusion are crucial for Small and Medium Enterprises (SMEs) to remain competitive. However, many SMEs have a limited understanding of the concepts and applications of financial literacy, facing challenges in financial management and business development. This community service activity aims to educate SMEs about financial literacy, using an approach based on the problems faced by SMEs in Palembang and reports from the Financial Services Authority (OJK) regarding the gap between financial inclusion and literacy in Indonesia. The results of this service show that educational programs focused on real-life examples are highly effective in improving SMEs' understanding of financial literacy. The appropriate use of approaches and ongoing mentoring also significantly contribute to increasing SMEs' knowledge. Questionnaire evaluations show an increase in financial literacy, including knowledge of numeracy, inflation, and risk diversification between pre- and post-training. Therefore, structured and sustainable training programs are essential for supporting the growth and sustainability of SMEs. This program enables SMEs to leverage knowledge and understanding for better financial management and sustainable business innovation. Additionally, such training supports the United Nations program on Sustainable Development Goal Number 8 related to economic growth.

This study investigates the influence of financial technology literacy, financial literacy and competitive pressure on the performance of Micro, Small and Medium Enterprises (MSMEs) in Jakarta. Data were collected from 77 MSME owners and managers through a structured questionnaire distributed with the assistance of the Jakarta MSME Office (Dinas PPKUKM). The responses were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that financial technology literacy and financial literacy have significant positive effects on MSME performance, while competitive pressure also has a positive but relatively smaller effect. These findings emphasise the importance of strengthening financial capabilities and digital readiness among MSMEs. Practically, the study recommends targeted financial literacy training programs, the provision of simple FinTech adoption toolkits and mentoring initiatives to enhance MSMEs' readiness to compete in dynamic markets.

Financial literacy is a critical factor that significantly impacts the success and achievement of small and medium enterprises' (SMEs) objectives. Unfortunately, many SMEs struggle with inadequate financial literacy, which hinders their ability to make informed decisions, manage resources effectively and drive growth. This knowledge gap can lead to poor financial planning, inefficient resource allocation and a lack of resilience, ultimately threatening the long-term sustainability of these businesses. By prioritising financial literacy, SMEs can enhance their capacity to develop realistic financial projections and budgets. This study investigated the level of financial literacy among small and medium enterprises (SMEs), examining both their knowledge and practical applications of financial concepts. Additionally, the research explored the correlation between SMEs' financial literacy and their socio-demographic characteristics, such as business size, industry, owner's age, education, and experience. A quantitative research approach was employed to achieve the study's objectives and primary data was collected through a questionnaire survey administered to a sample of 105 small and medium enterprises (SMEs) located in the uMgungundlovu District of KwaZulu-Natal, South Africa. The data analysis was conducted using SPSS version 23, leveraging both descriptive and inferential statistics to extract insights and meaning from the data. The findings of this study indicate that small and medium enterprises (SMEs) in the uMgungundlovu District exhibit low levels of financial knowledge and practice. Notably, the research revealed significant positive correlations between financial knowledge and various factors, including: age, qualifications, number of employees and annual turnover. A positive relationship was also established between financial practice and annual turnover. This study recommends that stakeholders, for instance, government agencies and banks should organise financial education programmes that invest in improving financial practices of small and medium enterprises. It is also recommended that small and medium enterprises pursue short courses in basic accounting to improve their knowledge base.

Research Aims: This study aims to analyze the effect of MSME's capital structure, as measured by financial leverage on SME’s profitability in Surakarta, Central Java, Indonesia. Furthermore, financial literacy of business owners was added as a moderating variable. Design/methodology/approach: Quantitative study on Micro, Small, and Medium Enterprises (MSMEs) in Surakarta, Central Java, Indonesia. Primary data was collected using a questionnaire. Statistical data analysis was conducted using Ordinary Least Square (OLS) regression. Research Findings: The study found that Financial Literacy plays a crucial role in moderating the relationship between Leverage and MSME performance. Specifically, Financial Literacy weakens the negative impact that Leverage could have on performance. The results underscore the importance of financial education and literacy in managing debt and ensuring sustainable growth. Literature about financing decisions for MSMEs is still relatively rare compared to larger companies. Moreover, this study adds financial literacy as a predictor of MSME’s financing decisions while many previous studies were mostly focused only on accounting and financial aspects. Theoretical Contribution/Originality: This study provides an insight to the government in prioritizing financial literacy imrprovement programs for MSMEs, specifically to train and motivate MSMEs to arrange periodical financial statements.

The COVID-19 pandemic has negatively impacted the economic growth of Indonesia. Government regulations to limit large-scale social activities has caused marketing and financial difficulties for micro, small and medium enterprises (MSMEs). Digital and financial literacy have the potential to overcome the problems. This study attempts to identify the determinants of MSME sustainability during the pandemic. By using a questionnaire, this study collected 204 data from MSMEs for further analyses. MSME sustainability is influenced by the digital and financial literacy of MSME owners and is a cause for concern. The implementation of health and safety measures (HSM) has an insignificant impact on business sustainability, but HSM affects financial and digital literacy. Entrepreneurial skills are important to improve HSM and owners’ digital and financial literacy. The government and other parties need to provide more soft loans and facilitate MSMEs to develop entrepreneurial skills, digital and financial literacy to improve business sustainability during the pandemic.

This research is motivated by the important role and features of Micro, Small and Medium Enterprises (MSMEs) in surviving the economic crisis and the high contribution to Gross Domestic Product (GDP) as well as when compared to large businesses. Even though it has a big role, MSMEs still have some problems, one of which is limitations on financial literacy. Limited literacy is a challenge in itself, considering that financial literacy can increase the ability to manage finances and access available financial products. In addition, this study also includes the used of digital finance variables because the 4.0 revolution has entered into everything that is digital-based. In addition, using these variables is also due to the emergence of optimism about the adopted telephone and internet. The used of digital finance in this study focuses more on payments produced by financial institutions and financial technology companies.The effects of these two variables on financial inclusion will then be examined considering their role in reducing the limited access to available financial services and thus encouraging economic growth. The city of Bandung is used as a research area. Bandung City was choosen because the large number of MSMEs and Bandung City MSMEs have their own characteristics. Based on the Dinas Koperasi dan UMKM Kota Bandung (2018), there are 5.242 micro businesses in Bandung City, 23 medium scale businesses, and 394 small-scale businesses so that the total number is 5.841 MSMEs. The research method used is explanative to explain the relationship between variables through purposive sampling so that 56 respondents were obtained. The purposive sampling technique using the following considerations: categorized micro, small and medium enterprises, business activities in Bandung city, and willing to provide the necessary information. In variable measurement, financial literacy is measured by knowledge related to finance and financial services, actions in making financial decisions, the ability to manage finances, tell financial concepts, and attitude in responding to financial related matters based on Bongomin, Munene, Ntayi, and Malinga (2017), Bongomin et al. (2016), Nkundabanyanga, Kasozi, Nalukenge, and Tauringana (2014), Kartawinata and Mubaraq (2018), and Sina (2017). Measurement the used of digital financial variable adapted based on Azam (2015), Zhou, Lu, and Wang (2010), and Qian, (2019) which consisted of perceptions of ease, benefits received, perceptions of used transfer activities, payments, and account management. Likewise financial inclusion, the measurement of which was adapted from Bongomin et al. (2017) and Bongomin et al. (2016) which consists of the ability to access financial services, using financial services, the quality of financial services, and the benefits obtained when using financial services.The data in this study are primary data with a questionnaire for further analysis using Partial Least Square (PLS). The Likert scale used in this study consists of 4 scales. The answer options strongly disagree are given value 1, disagree is given value 2, agree is given value 3, and strongly agree is given value 4 (Hermawan & Yusran, 2017; Martono, 2016). These four scales to reduce a neutral choice answers that do not show partiality towards positive or negative which results in a tendency not argue. PLS is used as a causality testing analysis tool due to the similarity of objectives with the research conducted and its used which can manage small amounts of samples. The minimum sample size in PLS is 10 samples on each line jalur (Abdillah & Hartono, 2015). In testing the hypothesis, a confidence level of 90 percent is used. Validity testing uses loading scores, AVE values, comparing indicator’s loading and cross loading, and comparison AVE roots with correlation. In this study also use reliability testing with composite reliability and KR-21 considering that the measurements carried out in the study were one measurement.The results show both variables have a positive influence and a very strong level of significance on financial inclusion. This result also supported by very strong evidence that can be seen through the p-value for each relationship. The results of the research prove that barriers to accessing these services can be minimized through increasing financial literacy so that can increase financial inclusion and be more developed. Therefore, a common problem experienced by MSME actors, namely low financial literacy, is a serious problem that can be overcome with training or coaching as consideration for solutions considering that financial literacy can open financial access to be more developed. Touching MSMEs with the used of digital finance will automatically open their ability to access available payment financial services and increasing financial inclusion.

Micro, small, and medium enterprises (MSMEs) are important assets for the economic sustainability in Indonesia. The sector has an important role in encouraging economic growth and supporting the creation of new jobs for the Indonesian population. When Indonesia was facing the economic crisis situation, MSMEs remained and stood strong. In fact, the data shows an increasing number of MSMEs. Despite their contribution to Indonesia’s economies, it turns out that MSMEs still have very basic problems. The results of previous research indicate that MSMEs still face various problems related to financial management caused by a lack of managerial and financial knowledge. There are many cash flow problems faced by MSMEs that are in line with the lack of knowledge and understanding of financial management by MSME actors. This indicates that owners or managers of MSMEs need to have sufficient financial literacy. Understanding of financial literacy is paramount for business actors and can be utilized for instance to prepare financial statements that can be used to obtain funds. In the context of MSMEs, owners or managers need to have financial knowledge related to financial access and also for a company business to grow well. This study aims to analyze the financial literacy of owners or managers and its impact on access to finance and growth of the MSMEs in West Java, Indonesia. The samples of this research are MSMEs’ owners or managers of various business types. Data concerning Financial Literacy, Access to Finance, and Growth of the MSMEs are obtained through questionnaires. The obtained data were processed using Structural Equation Modeling to ensure the relationships between research variables. The results of the research analysis show depictions of the financial literacy, financial access, and growth of MSMEs in West Java, Indonesia. The results of the study support the previous studies and theories that Financial Literacy has a positive effect on Access to Finance and Growth of MSMEs, and Access to Finance also has a positive effect on Growth of MSMEs.

This study aims to investigate the effects of financial and digital literacy on growth of small and medium enterprises (SMEs) managed by women in Indonesia. Data were collected through questionnaires of women entrepreneurs in Palembang, Indonesia. For the purpose of comparison, data of men entrepreneurs were also collected. The variables employed are latent variables such as financial literacy, digital literacy, SME’s growth which are derived from a series of questions to indicate each variable. A total of 240 women and 240 men were analyzed using structural equation modelling (SEM). The results reveal that both financial and digital literacy had positive and significant effects on return on assets. On the other hand, only digital literacy had positive and significant effects on growth. The findings further evidence that women had a lower level of digital knowledge compared to men. Furthermore, the results show that in the short term, financial literacy and digital literacy are important to understand and implement. But in the long run, digital literacy plays an important role because it impacts business growth. This is in line with an increasingly fierce market competition where the market is also shifting from traditional markets to modern markets. Not only the market, but consumers are also shifting from traditional consumers to digital consumers.

Background - Micro, Small, and Medium Enterprises (MSMEs) are crucial for driving Indonesia's economic growth. However, their sustainability often faces challenges due to limited access to financial resources and minimal use of financial technology. Many MSMEs also exhibit low financial literacy, which impacts their ability to manage their finances efficiently and utilize digital financial instruments. In an increasingly complex and competitive market landscape, the ability of MSMEs to obtain funding and utilize financial technology is crucial for achieving sustainable growth. Objective - This study aims to examine the mediating effect of access to finance on the relationship between financial literacy and financial technology on the sustainability of MSMEs. This study specifically examines whether financial literacy and financial technology can have a significant impact on the sustainability of MSMEs, both directly and indirectly through access to finance as a mediating factor. Design/Methodology/Approach - This study employed a quantitative methodology using a questionnaire to collect data from 150 MSME participants in Batam City. The sampling technique used was purposive sampling, specifically aimed at financial technology users. Data were collected through Structural Equation Modeling–Partial Least Squares (SEM-PLS) using SmartPLS software. This model combines reliability, validity, and significance assessments through bootstrapping to evaluate direct and indirect influences between variables. Find - The findings of this study indicate that financial technology significantly influences the sustainability of MSMEs, both through direct connections and through a mediation process through access to finance. Access to finance has been shown to significantly influence the sustainability of MSMEs. Conversely, financial literacy does not show a significant direct impact on sustainability, nor does it have a significant indirect effect through access to finance. These findings emphasize that the influence of financial technology is greater than financial literacy in increasing the competitiveness and sustainability of MSMEs in today's digital era. Conclusion - The conclusion obtained in this study is that financial literacy does not have a significant direct influence on the sustainability of MSMEs. In contrast, financial technology and access to finance have a significant positive influence on the sustainability of MSMEs. Access to finance mediates the relationship between financial technology and MSME sustainability, but access to finance does not mediate the relationship between financial literacy and MSME sustainability. This finding confirms the importance of adopting financial technology in strengthening the sustainability of MSMEs. Research Implications - The findings of this study provide important insights for various parties, particularly the government, financial institutions, and business support service providers. They need to be more proactive in encouraging the use of financial technology among MSMEs to support business closures. Furthermore, financial literacy programs need to be designed with a more applicable approach and be relevant to the needs of MSMEs, particularly those related to the use of digital financial services, so that their benefits are truly felt in daily business practices. Limitations - This study has several limitations. It is geographically confined to Batam City, limiting the generalizability of its findings to other regions in Indonesia. Furthermore, as a purely quantitative study, it does not explore in-depth behavioral or socio-psychological factors that may influence MSME sustainability. Future research is recommended to employ a mixed-methods approach and expand the scope to other regions to gain more comprehensive insights.

This study investigates the impact of financial access, technology adoption, and literacy on the performance and sustainability of small and medium enterprises (SMEs) in Indonesia. Using data from 469 SMEs and employing a serial mediation model alongside importance-performance mapping analysis (IPMA), the research reveals that financial literacy enhances both loan availability and FinTech adoption. However, FinTech adoption has minimal direct impact on financial access. While the links between financial literacy, capital access, and business performance are moderate, financing access plays a crucial mediating role between FinTech adoption, financial literacy, and business outcomes. Financial literacy also serves as a key mediator in driving SME success when coupled with FinTech usage and funding access. To support long-term SME sustainability, policymakers should prioritize initiatives that strengthen financial literacy and access to capital. Although the study offers valuable insights, its scope is limited to Indonesian SMEs operating in traditional markets. Future research should broaden the framework to other regions and industries, and improve data reliability through triangulation methods.

The ability to manage finances well (financial literacy) is very important for micro, small and medium enterprises (MSMEs) to run their businesses. It is hoped that the use of fintech payment services can improve the financial literacy skills of MSME players. This research aims to analyze the level of financial literacy of MSMEs that use fintech payment services. The research was conducted using a qualitative approach through case studies. Data collection using in-depth interviews and observations of 10 MSMEs using fintech in Leuwiliang Bogor. Data analysis uses the Miles and Huberman interactive model. The research results show that the use of fintech helps MSMEs in financial planning, recording transactions, and accessing financial information, and financial literacy shows that it can help MSMEs in good financial knowledge, good financial management for MSME players. Increasing MSME financial literacy such as recording transactions and planning daily expenses. MSMEs already understand because special assistance and training for the use of fintech can improve MSMEs' financial literacy better.

This study aims to determine the influence of perceived ease of use and risk of use, and financial literacy on the decision to transact using QRIS on MSME (Micro small and Medium Enterprises) in South Denpasar. The population in this study is all MSME (Micro small and Medium Enterprises) in South Denpasar. The sample was determined using the Slovin formula, which obtained a sample of 99 MSME (Micro small and Medium Enterprises). The data analysis technique in this study used multiple linear regression analysis. The results of this study indicate that perceived ease of use has a positive and significant effect on the decision to transact using QRIS on MSME (Micro Small And Medium Enterprises) in South Denpasar, the risk of use has a positive and significant effect on the decision to transact using QRIS on MSME (Micro small and Medium Enterprises) in South Denpasar and financial literacy has a positive and significant effect on the decision to transact using QRIS on MSME (Micro Small And Medium Enterprises) in South Denpasar.

Background: Global concerns about financial literacy have heightened following the 2007–2008 global financial crisis during which it became apparent that lack of financial literacy was one of the factors that contributed to detrimental financial decision making. This recognition shows that poor financial decisions have a harmful overspill impact on financial and economic stability in a country. Complex financial markets call for exceptional levels of financial competence to enable individuals and business people to make intelligent choices among competing financial products. The study was conducted in two provinces of Zimbabwe, namely, Harare and Mashonaland Central Province among small and medium enterprises (SMEs) who were in operation. Aim: The study sought to ascertain the level of financial literacy among SMEs business owners and to identify factors that influence the financial literacy levels. The research will give an insight on the state of preparedness of SMEs to participate in highly complicated financial markets. This adds to the existing scarce literature in sub-Saharan Africa on financial literacy levels among SMEs. Setting: The study was conducted among SMEs who reside in two provinces of Zimbabwe namely Harare Province and Mashonaland Central province. Methods: A quantitative cross-sectional research design was employed, with data collected by means of a questionnaire administered to a sample of 384 SMEs in Harare and Bindura districts. Results: Findings revealed lower levels of financial literacy among SMEs. The main variables influencing financial literacy levels were interest rates and inflation. Conclusion: The study concludes that financial literacy among SMEs is low, and hence there is a need to introduce financial literacy education among small business owners. It is recommended that measurement of financial literacy be extended to different population cohorts to provide baseline data on which policies can be crafted.

Background – This study investigates the relationship between financial literacy and business sustainability among Micro, Small, and Medium Enterprises (MSMEs) in Malang Regency/City, emphasizing the mediating role of business performance. The research aims to uncover how financial literacy affects operational decisions and outcomes, offering practical insights for improving long-term sustainability. Aim – This study aims to explain in detail the effect of financial literacy on MSME sustainability, while considering the mediating role of business performance. The focus is to identify the extent to which financial knowledge influences operational efficiency and the long-term resilience of businesses. Design / methodology / approach – A quantitative method was used with a sample of 300 MSMEs that have operated for at least one year. Using simple random sampling, data were collected and analysed with Structural Equation Modelling-Partial Least Squares (SEM-PLS). Findings – The results indicate that financial literacy has a positive and statistically significant effect on MSME business performance (β = 0.471; t = 8.708; p < 0.001). Financial literacy also shows a direct positive effect on business sustainability (β = 0.201; t = 3.536; p < 0.001), while business performance demonstrates a stronger direct influence on sustainability (β = 0.567; t = 12.719; p < 0.001). The model explains 22.1% of the variance in business performance and 46.9% of the variance in sustainability, indicating acceptable explanatory power. These findings confirm that business performance acts as a critical mediating mechanism through which financial literacy enhances business sustainability, suggesting that improving entrepreneurs’ financial capabilities contributes both directly and indirectly to sustainable MSME development. Conclusion – The conclusion obtained in this study is that financial literacy has a positive and statistically significant effect on MSME business performance, financial literacy has a direct positive effect on business sustainability, and business performance has a critical mediating role between financial literacy and business sustainability Research implication – The results show that financial literacy significantly improves MSME performance (β = 0.471; p < 0.001) and sustainability (β = 0.201; p < 0.001), while performance strongly drives sustainability (β = 0.567; p < 0.001). These empirical patterns indicate that financial education initiatives should be prioritized because they improve performance first, which then strengthens sustainability. Policymakers are therefore encouraged to design targeted, practical financial programs linked to performance coaching. Limitations – The study is limited to the Malang region and uses a quantitative design. It focuses on three variables, excluding factors like access to financing, government support, technology, and market dynamics.

This research investigates the relationship between financial literacy, financial technology, financial behavior, and financial inclusion development in Jordanian MSMEs. Specifically, it seeks to examine whether financial behavior mediates the influence of financial literacy and financial technology on financial inclusion development. This study employs a partial least square structural equation modeling (PLS-SEM) approach to investigate the relationship between financial literacy, financial technology (FinTech), financial behavior, and financial inclusion development in Jordanian micro, small, and medium enterprises (MSMEs). Based on a sample of 334 MSMEs in Jordan, the study found that financial literacy and FinTech have a significant impact on financial inclusion development in MSMEs. Additionally, financial behavior was found to mediate the relationship between financial literacy and FinTech on financial inclusion development. The findings of this study suggest that financial literacy and FinTech can be useful tools in promoting financial inclusion in MSMEs, and that financial behavior plays a crucial role in realizing their full potential. The study provides insights into the factors that influence financial inclusion in MSMEs and has implications for policymakers, financial institutions, and MSMEs in Jordan and other emerging economies. The use of PLS-SEM in this study provides a robust statistical approach for analyzing the complex relationships between the variables of interest. The scientific novelty of this study lies in its focus on the mediating effect of financial behavior on the relationship between financial literacy, financial technology, and financial inclusion development in Jordanian MSMEs. Keywords: financial behaviour, financial inclusion development, financial literacy, FinTech, partial least square structural equation modeling. https://doi.org/10.55463/issn.1674-2974.50.3.10