The Influence of Financial Knowledge, Financial Skills, and Financial Attitudes on the Financial Behavior of MSME Entrepreneurs in West Sumatra

Abstract

Financial literacy is one of the life skills that every human being, including entrepreneurs, must possess. Financial literacy (which consists of financial knowledge, skills, and attitudes) is something that can encourage entrepreneurs' financial behavior to be better as well. This study aimed to investigate the effect of financial knowledge, financial skills, and attitudes on the financial behavior of MSME entrepreneurs in West Sumatra. The data collection method used is quantitative research with 108 samples of West Sumatra SMEs selected by purposive sampling. The analysis used is multiple linear regression analysis. The results of this study indicate that simultaneously (together), the variables of financial knowledge, financial skills, and financial attitudes have a significant effect on financial behavior variables. In addition to testing the hypothesis, both H1, H2, and H3 are all accepted, meaning that partially the independent variables X1 (financial knowledge), X2 (financial skills), and X3 (financial attitudes) have a significant positive effect on the dependent variable (financial behavior). This research implies that MSME entrepreneurs already have a good level of financial literacy, so to carry out good financial behavior by maintaining this financial knowledge, skills, and attitudes into correct behavior carried out with awareness and responsibility.