Factors that Influence the Financial Performance of MSMEs in Kartasura District

Abstract

The aim of this research is to determine whether the financial performance of MSMEs in Kartasura District is influenced by credit distribution, capital, financial management and financial literacy. The research subjects for this research population are MSMEs in the Kartasura Regency, concluded the author. A simple random sampling technique, or random sampling, was applied in this research. Hundreds of MSMEs are located in Kartasura Regency. Viability models, multiple linear regression, partial testing, and coefficient of determination tests were used in this quantitative research. Normality, heteroscedasticity, and multicollinearity were evaluated using classical assumptions. Validity and reliability were assessed using instrument data. tested using hypotheses (f, t, and R2). Data processing was carried out with SPSS 25.0. The findings show that while the financial literacy variable has a partially negative influence on the financial performance of MSMEs in Kartasura Regency, the capital, financial management and credit granting variables have a partial positive and quite large influence