Financial Behavior, Inclusion, and Technology in MSMEs: The Mediating Impact of Financial Literacy on Performance

Purpose: The purpose of this study is to examine the effect of Financial Literacy and Financial Technology (Fintech) on the performance of MSMEs with Financial Inclusion as a mediator. Methodology/approach: The research method used in this study was quantitative and descriptive analysis. The sampling technique was carried out by distributing questionnaires to micro, small, and medium enterprises (MSMEs). The test tool used in this study was Partial Least Squares (PLS) with a sample size of one hundred and ten respondents. Results/findings: The results of the study indicate that Financial Literacy and Financial Technology have no effect on MSME performance. Financial inclusion affects MSME Performance. Financial Inclusion does not serve as a mediating variable in the relationship between financial literacy and MSME performance. Financial Inclusion mediates the influence of Financial Technology on MSME performance. Conclusions: Although financial technology aims to facilitate financial transactions, the low understanding of this technology can actually be an obstacle for business actors. Thus, the level of financial literacy and understanding of technology are important factors in optimizing the role of financial technology in driving MSME performance. Limitations: This study was only carried out on micro, small, and medium enterprises (MSMEs) in Lowokwaru District, Malang City, with predetermined criteria. Contribution: This study can be used as a consideration and reference related to decision making for the progress of growth in culinary Micro, Small and Medium Enterprises (MSMEs) in Malang City.

The role of Micro, Small, and Medium Enterprises (MSMEs) is very fundamental as a pillar of the Indonesian economy. This study examines the effect of financial literacy on the performance of MSMEs with financial inclusion as a mediating variable conducted on MSMEs in Wero Village. The study focused on 40 MSME actors who were sampled. Questionnaires were given to respondents to obtain accurate data. Data analysis was carried out using the Partial Least Square (PLS) method with SmartPLS 3.0 software. The results of the study showed that financial literacy did not have a positive and significant effect on MSME performance. However, financial literacy has a positive and significant effect on financial inclusion which is then proven to be effective as a mediator in the positive relationship between financial literacy and MSME performance. This study still has limitations, namely only examining MSMEs in Wero Village. So further research is needed so that the findings can be generalized.

Micro, Small and Medium Enterprises (MSMEs) are the supporting sector of the country's economy and are able to survive in any conditions, including when the economic crisis hits. MSME business development is very necessary so that performance can always be improved and business continuity can be maintained. The results of a preliminary survey on MSMEs in Semarang City show that the average financial performance of MSMEs is still fluctuating (up and down). Based on phenomena and research gaps (developing) research by adding financial literacy variables. The object of this research was carried out on MSMEs in Semarang City with a final sample size of 144 using the cluster random sampling method (per sub-district). The analysis tool uses a regression equation test with a mediation test using the Sobel test. The research results show that the variables fintech, financial literacy, financial inclusion of MSMEs and MSME performance in Semarang City have sufficient values ​​in the interval 2.33 to 3.65, with MSME performance with the highest average. The fintech and financial literacy variables have been proven to have a positive and significant effect on the financial inclusion of MSMEs in Semarang City. Fintech, financial literacy and financial inclusion of MSMEs have proven to influence the performance of MSMEs in Semarang City. MSME financial inclusion has been proven to mediate the influence of financial literacy on MSME performance in Semarang City, however, financial inclusion has not been proven to mediate the influence of fintech on MSME performance.

In Depok City, the MSME (Micro, Small and Medium Enterprises) business sector plays an important role in the local economy. However, most MSMEs in the city still face various challenges, including financial access issues and low financial literacy levels. Therefore, financial inclusion and financial literacy have the potential to have a positive impact on the business performance of MSMEs in Depok City. This study aims to test and analyze the effect of financial inclusion and financial literacy with business sustainability as an intervening variable in the MSME business sector in Depok City. This study involved MSME players in Depok City using the Non Probability sampling method with a population of 7911 which was processed using the Slovin formula into 100 research samples. The data were processed using the Partial Least Square- Structural Equation Modeling (PLS-SEM) method. This type of research is quantitative research, using primary data, the findings report that Financial Inclusion affects the Performance and Sustainability of MSME Businesses, Financial Literacy affects the Performance and Sustainability of MSME Businesses, as evidenced by Business Sustainability being able to mediate Financial Inclusion on MSME Performance and Business Sustainability being able to mediate Financial Literacy on MSME Performance. This can be a reference for MSME players to realize the importance of access to banking services to get the best results. finance so that it can improve the performance of MSMEs and their Business Sustainability. Based on the results of this study, many MSMEs continue to survive in their business activities, it is proven that they are able to survive for more than 5 years in Depok City.

Micro, Small and Medium Enterprises (MSMEs) are the supporting sector of the country's economy and are able to survive in any conditions, including when the economic crisis hits. MSME business development is very necessary so that performance can always be improved and business continuity can be maintained. The results of a preliminary survey on MSMEs in Semarang City show that the average financial performance of MSMEs is still fluctuating (up and down). Based on phenomena and research gaps (developing) research by adding financial literacy variables. The object of this research was carried out on MSMEs in Semarang City with a final sample size of 144 using the cluster random sampling method (per sub-district). The analysis tool uses a regression equation test with a mediation test using the Sobel test. The research results show that the variables fintech, financial literacy, financial inclusion of MSMEs and MSME performance in Semarang City have sufficient values ​​in the interval 2.33 to 3.65, with MSME performance with the highest average. The fintech and financial literacy variables have been proven to have a positive and significant effect on the financial inclusion of MSMEs in Semarang City. Fintech, financial literacy and financial inclusion of MSMEs have proven to influence the performance of MSMEs in Semarang City. MSME financial inclusion has been proven to mediate the influence of financial literacy on MSME performance in Semarang City, however, financial inclusion has not been proven to mediate the influence of fintech on MSME performance.

This study aims to analyze the influence of financial literacy, financial technology (fintech), and financial inclusion on the performance of micro, small, and medium enterprises (MSMEs) in Bandar Lampung City. Financial literacy is an important factor that allows MSMEs to understand financial products and services effectively. Meanwhile, fintech provides easy access to various financial services, which are expected to improve MSME operations. Financial inclusion, which involves accessibility of financial services for all levels of society, plays an important role in supporting the development of MSMEs.This type of research uses quantitative research with an ex-post-facto approach . The population of this study is MSME actors in Bandar Lampung City with a sample size of 106 MSME actors. The location of the study is in Bandar Lampung City. Data collection was carried out by distributing questionnaires. The validity of the instrument using the Person Product Moment correlation resulted in 53 items being declared valid. The reliability test of the instrument used Alpha Croncah ( α > 0.60), the results showed that all variables were declared reliable. The prerequisites for the analysis were tested through normality, multicollinearity and heteroscedasticity tests. Data analysis using multiple linear regression was used to test the effect of independent variables simultaneously on the dependent variable. The results of the study show that: (1) there is a positive and significant influence of financial literacy on the performance of MSMEs in Bandar Lampung City which is quite large, namely if every 1 unit increase in financial literacy can increase MSME performance by 0.528 units . (2) There is a positive and significant influence of the FinTech variable on the performance of MSMEs in Bandar Lampung City which is quite large, namely if every 1 unit increase in the adoption of financial technology has the potential to increase MSME performance by 0.518 units. (3) There is a positive and significant influence on the financial inclusion variable on the performance of MSMEs in Bandar Lampung City which is smaller, namely an increase of 0.204 units . (4) There is a simultaneous and positive influence of financial literacy, fintech, and financial inclusion on the performance of MSMEs in Bandar Lampung City at a confidence level of 99%.

Within the economic landscape of Depok City, the Micro, Small, and Medium Enterprises (MSMEs) sector holds a pivotal position, contributing significantly to the local economy. Despite its importance, a myriad of challenges confront MSMEs in the city, encompassing issues related to financial access and insufficient financial literacy. Consequently, this study seeks to empirically examine and elucidate the influence of financial inclusion and financial literacy, with business sustainability serving as an intermediary variable within the MSME sector of Depok City. Utilizing the Non-Probability sampling method, this research engaged MSME participants in Depok City, with a population of 7911, employing the Slovin formula to determine a representative sample size of 200. Employing the Partial Least Square- Structural Equation Modeling (PLS-SEM) method for data analysis, this quantitative research aims to contribute valuable insights to the existing body of knowledge. The findings reveal a discernible impact of Financial Inclusion on both the Performance and Sustainability of MSMEs. Similarly, Financial Literacy emerges as a significant factor influencing the Performance and Sustainability of MSMEs. Furthermore, Business Sustainability is identified as a mediating factor, demonstrating its capacity to mediate the relationship between Financial Inclusion and MSME Performance, as well as between Financial Literacy and MSME Performance. This study serves as a valuable reference for MSME stakeholders, underscoring the imperative nature of accessible banking services for optimal financial outcomes. The results advocate for enhanced financial literacy as a means to fortify the performance and sustainability of MSMEs. In conclusion, the study attests to the resilience of many MSMEs in Depok City, substantiating their ability to endure and thrive in their business endeavors, evident by a sustained operational existence exceeding five years.

This study aims to analyze the influence of financial capital, financial technology, and financial behavior on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Sampang Regency. The method used is a quantitative method involving 50 MSME actors as research samples. Data were collected using a Likert-based questionnaire, which was designed to measure research variables systematically. The data analysis process was carried out using SPSS software. The results of the study showed that financial capital has a positive and significant influence on MSME performance. Similar things were also found in financial technology and financial behavior, where both variables had a significant positive influence on MSME performance. In addition, the results of the simultaneous test revealed that the three variables—financial capital, financial technology, and financial behavior—together had a significant influence on MSME performance in Sampang Regency. Thus, this study confirms the importance of financial and behavioral factors in supporting the success of MSMEs, especially in the research area. This conclusion provides important insights for MSME actors and policy makers to strengthen these factors in order to improve the performance of the MSME sector in Sampang Regency.

The development of financial technology (fintech) provides significant opportunities for Micro, Small, and Medium Enterprises (MSMEs) to improve their business performance. However, optimal fintech utilization is strongly influenced by the level of financial literacy of MSMEs. This study aims to analyze the influence of financial technology on the performance of MSMEs in Palembang City, with financial literacy as a mediating variable. The research method used a quantitative approach, collecting data through questionnaires from 100 MSMEs in Palembang City. The data analysis technique used path analysis or Structural Equation Modeling (SEM). The results show that financial technology has a positive and significant effect on MSME performance. In addition, financial technology also has a positive effect on financial literacy, and financial literacy has been proven to have a positive effect on MSME performance. Financial literacy can significantly mediate the influence of financial technology on MSME performance. These findings indicate that improving the financial literacy of MSMEs is crucial for the effective use of fintech and optimal impact on business performance. This research is expected to serve as a reference for the government and stakeholders in formulating policies for developing MSMEs based on financial technology.

This study aims to examine the influence of financial literacy, financial inclusion, and financial management on the quality of financial reporting and the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Surakarta. Using a quantitative approach, data were collected through questionnaires distributed to MSME actors who met certain criteria. The analysis was conducted using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The findings show that financial literacy, inclusion, and management have a significant effect on the quality of financial reporting, which in turn positively affects financial performance. The quality of financial reporting also acts as a mediating variable in the relationship between financial behavior and MSME performance. This research contributes to the development of MSME financial practices and provides insight for policy makers in enhancing financial capability and reporting standards among MSMEs

This study investigates the influence of financial literacy, entrepreneurship training, and financial inclusion on the performance of micro, small, and medium enterprises (MSMEs) through business sustainability. Using a systematic literature review (SLR) examines the impact of financial literacy, entrepreneurship training, and financial inclusion on MSME performance through business sustainability mediation by synthesizing empirical data from 12 research (2020–2025) across Scopus and Web of Science. Positive direct effects on sustainability (financial literacy via budgeting/risk management; training via adaptive resilience; inclusiveness via digital access) and performance metrics like profitability/growth are confirmed by results using the PRISMA 2020 flow. Amid obstacles like financial access restrictions and COVID-19 disruptions, business sustainability appears as a crucial mediator, linking these factors to improved MSME results in developing contexts (Africa, Indonesia). Practical implications compel policymakers to give integrated literacy programs, contextual training, and inclusive finance top priority. Theoretical contributions combine financial literacy, entrepreneurial learning, and sustainability ideas into a holistic mediation model. The results highlight the importance of integrating financial education, entrepreneurial skill development, and inclusive financial systems to strengthen MSME resilience and competitiveness. This study provides practical implications for policymakers, financial institutions, and support organisations in designing effective interventions that foster sustainable business growth. The research also contributes theoretically by confirming the mediating role of business sustainability in the relationship between financial literacy, entrepreneurship training, financial inclusion, and MSME performance. Future studies may expand these insights by examining additional contextual factors such as digital technology adoption and business networking that further support sustainable MSME development.

This research aims to determine the influence of financial technology, financial literacy and financial inclusion on the performance of micro, small and medium enterprises (MSMEs) in Indonesia mediated by social capital. This research uses quantitative methods, assisted by SmartPLS software for data processing in structural equation modelling analysis. The contribution of this research can be used as a financial strategy for MSMEs to survive, such as testing how financial technology, social capital and financial literacy interact. The results of this research show that the use of financial technology, financial inclusion and financial knowledge can significantly influence the performance of MSMEs. In addition, social capital significantly mediates the relationship between financial technology, financial inclusion, financial knowledge and MSME performance. The results of this research provide a solid basis for creating a broad and integrated policy strategy. The success of MSMEs depends on a wise combination of fintech, financial inclusivity, financial literacy and social wealth. Therefore, policy makers, financial institutions and business people can use this information to create an environment that supports the growth and sustainability of MSMEs and makes a greater contribution to the local and national economy.

This research examines the mediating role of access to finance, financial risk management, and competitive advantage in the relationship between financial literacy and Micro, Small, and Medium Enterprises (MSME) performance. This research also tests demographic factors such as the owner's gender, company size, company age, and number of employees in moderating the influence of the variables studied. The sample for this research is MSMEs in Jakarta Province, Indonesia. Five hundred and fifty MSMEs participated in the study using a web-based self-administered questionnaire. The data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The research results show that financial literacy positively affects access to finance, financial risk management, competitive advantage, and MSME performance. Access to finance, financial risk management, and competitive advantage positively affect MSME performance and can mediate the relationship between financial literacy and MSME performance. The research also uncovers the moderating role of demographic factors, suggesting that the strength of the connections between financial literacy, access to finance, financial risk attitude, competitive advantage, and MSME performance may vary based on these factors. These findings carry significant implications for owners, managers, and governmental stakeholders, emphasizing the importance of enhancing financial literacy among MSMEs to enhance their performance.

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.

Purpose: This study investigates the effect of digital financing, e-commerce marketing, and business location on the performance of micro, small, and medium enterprises (MSMEs) in Malang City. Indicators of MSME performance include sales growth, customer reach, and operational efficiency. Guided by the Resource-Based View (RBV) theory, the study also examines the combined influence of these factors on MSME performance. Design/Methodology/Approach: The research employed a quantitative design with a descriptive approach. Data were collected from 200 MSME actors in Malang City through online (Google Forms) and offline surveys. The sample size was determined using the Malhotra formula. Responses were measured on a five-point Likert scale, and data were analyzed using SmartPLS to assess convergent validity, R², and hypothesis testing (t- and F-tests). Findings: The results show that e-commerce marketing (t = 2.770, p = 0.006) and business location (t = 5.582, p = 0.000) significantly and positively affect MSME performance. However, digital financing access does not have a significant impact (p = 0.282). Together, these three variables explain 30% of the variance in MSME performance. Theoretical Implications: By applying the RBV framework, this study contributes to the understanding of how intangible resources (digital tools and marketing) and tangible resources (location) shape MSME competitiveness and performance. Practical implications: The findings highlight the importance for MSME actors to prioritize e-commerce marketing and strategic business locations to strengthen competitiveness. Policymakers and financial institutions should also improve financial literacy programs and facilitate technology adoption to enhance the effectiveness of digital financing. Originality/Value: This study provides novel insights into MSMEs in Malang City by integrating RBV theory with digital financing, e-commerce, and location factors. Unlike prior research that treats these variables separately, this study tests their individual and combined effects on MSME performance. Research limitations/Implications: The study is limited to MSMEs in Malang City, which may restrict generalizability. Future research could expand the scope to other regions, explore moderating variables such as digital literacy, and apply longitudinal designs to capture performance over time.