Abstract
This study aims to empirically examine the effect of financial literacy on growth and the effect of financial literacy on the sustainability of SMEs (Small and Medium Enterprises) in the handicraft sector in Padang City. The object of this research is the handicraft sector in Padang City. Respondents in this study amounted to 150 people selected based on purposive sampling method. Hypothesis testing is carried out using Structural Equation Modeling (SEM) analysis with STATA program version 12.0. The results of this study indicate that financial literacy has a significant effect on growth in SMEs in the handicraft sector in Padang City and financial literacy does not affect the sustainability of SMEs in the handicraft sector in Padang City.
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