Financial Behavior and Performance on Small and Medium Enterprises in Coastal Area of Medan City

Abstract

This research was conducted to search the financial performance of local small and medium enterprises (SMEs) of coastal area of Belawan in Medan city. This study used 60 respondents to see the effect of the behavior of financial management such as habits, field and capital on financial performance. This research used dummy variable-gender to find the level of financial performance between men and women. This test used descriptive and regression analysis as the research methods and SPSS as the analysis tools. The result showed that simultaneously habits, field, capital and gender have significant effect on financial performance. While partially, habits have significantly positive effect on financial performance. Field has no significant effect on the financial performance. Capital has no significant effect on financial performance and dummy variable explains that men have smaller financial performance than women do. The implication of the research explains that the owner of SMEs can manage their financial behaviour which consists of habits, field and capital.