The Financial Freedom Approach in MSME Financial Management in the Tourism Sector

Abstract

The short-term goal of this research is to provide knowledge and understanding of MSMEs financial management using the financial freedom approach, in addition to providing alternative solutions for MSMEs in solving the problems they face in managing their finances. The long-term goal is that MSME actors are able to apply or implement their financial management using the financial freedom approach. This type of research is qualitative using a descriptive approach. The design stages of the research used include identification of research phenomena and problems, selecting key informants related to the research, data collection (observations, interviews, recordings, and documentation), data validity, data analysis, and research conclusions. The results of the study show that first, MSMEs actors in the four destinations have not carried out financial management such as recording, reporting and financial control. Second, MSMEs in the four destinations do not understand, understand and have knowledge of financial management using the financial freedom approach. However, in reality the majority of MSMEs have carried out most of the stages of financial freedom except for the stages of investing in financial assets and preparing emergency funds (reserves) which they did not do.