Literation And Financial Inclusion Among Creative Economic MSMEs; A Comparative Study

Layaman Layaman,Fella Hafidza,Robbani Robbani

doi:10.24235/amwal.v12i2.6374

Abstract

Abstract Micro, Small and Medium Enterprises are considered as sectors that are able to survive in the face of the economic crisis shock. However, there are some problems in running this Micro and Small and Medium Enterprises. This research is motivated by problems that hamper this development including limited management of financial management, human resources and access to capital. This is thought to have occurred because of low financial literacy among Small and Medium Enterprises. Therefore, this study aims to determine the condition and compare financial literacy and inclusion that is believed to help in the business development of the Creative Culinary Subsector of Micro Small and Medium Enterprises in the City of Cirebon with Cirebon Regency. The population in this study was 24,861 Micro Small and Medium Enterprises and 100 respondents. The sampling technique used purposive sampling with a sample size of 200 respondents or around 100 respondents in Cirebon City and 100 respondents in Cirebon Regency. While the analysis technique in this study uses multiple linear regression analysis with the help of SPSS Version 2.1 The results of this study that the variable Literacy and Financial Inclusion significantly influence the Development of Culinary Subsectors of the Creative Economy of Small and Medium Enterprises in the City and District of Cirebon. The comparative value is that the condition of Financial Literacy or Inclusion in the Cirebon City region is greater than in Cirebon Regency. Keywords: Financial Literacy, Financial Inclusion, Micro, Small and Medium Enterprises

Highlights

The economic condition expected by Indonesia is a sustainable economy and has several sectors as pillars and support for economic activity in Indonesia
In contrast to other sectors that are highly dependent on the exploitation of natural resources, the power of the creative economy relies more on the advantages of human resources
The results of this research can be shown as follows: Financial Literacy has a significant effect on the Growth of Creative Economy MSMEs in the Culinary Subsector in Cirebon City and Regency; Financial Inclusion has a significant effect on the Growth of Creative Economy MSMEs in the Culinary Subsector in Cirebon City and Regency

Summary

INTRODUCTION

The culinary sub-sector's creative economy MSMEs are among the businesses that are most in demand by MSME players today. The main problem in running Micro, Small and Medium Enterprises (MSMEs) is not limited to financial management and limited resources, and access to capital owned by business actors. The low level of financial literacy among MSME actors is one of the causes of the lack of access to financial institutions for this sector. One must look at financial inclusion (access to credit) related to company growth. Financial inclusion plays an important role in increasing the growth of a company. Previous empirical studies concluded that there is a positive relationship between financial inclusion and company growth (Efobi et al 2016; Nizam, R., et al, 2020).

LITERATURE REVIEW Financial Literacy

AND DISCUSSION

CONCLUSION