Micro, Small And Medium Enterprises Sector Research Articles

Impact of Goods and Service Tax on MSME Sector: A Study Using Artificial Neural Network and Multivariate Analysis of Variance

Micro, small and medium enterprises (MSME) is one the vital sector of the developing economy. Changes in fiscal policy directly impact this sector the most. The present article aims to examine the impact of the recent Indian indirect system tax overhaul, that is, Goods and Service Tax (GST), on the MSME sector. We have employed multivariate analysis of variance and multi-layer perceptron neural network on the extensive data set for 60 months from April 2015 to March 2020. The empirical findings state that a significant increase has been observed in the MSMEs’ export, revenue generation and gross domestic product in the post-GST era. The findings may aid the emerging economies that are planning to alter tax systems to boost the MSME sector at the international level. JEL Codes: H20, L00, B22, C01, C45

The Effect of Generation Z Participation and Financial Technology Innovation on Community Welfare and Sustainable Development in MSMEs in Indonesia

This study investigates the effect of Generation Z participation and Financial Technology (FinTech) innovation on community welfare and sustainable development within Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative research approach was employed, utilizing a cross-sectional survey design to collect primary data from MSME owners, employees, and stakeholders. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was used to analyze the data and test the hypothesized relationships. The findings reveal significant positive relationships between both Generation Z participation and Financial Technology Innovation with Community Welfare and Sustainable Development. The results underscore the importance of harnessing youth entrepreneurship and technological innovations to drive socio-economic development and promote sustainable growth within the MSME sector. These findings have significant implications for policymakers, entrepreneurs, and stakeholders striving to foster inclusive and sustainable development in Indonesia.

The Impact of Macroeconomics on Advancing MSME Development in Indonesia

Micro, Small and Medium Enterprises (MSMEs) contribute around 60% to Indonesia's Gross Domestic Product (GDP), playing a crucial role in economic development. MSME growth is the main focus, influenced by macroeconomic factors such as the BI Rate, inflation and exchange rate. This study uses secondary data from Bank Indonesia, BPS, and the Ministry of Cooperatives and Small and Medium Enterprises from 1997 to 2022. The quantitative analysis method using Eviews 10 shows that the BI Rate has a positive impact on the number of MSMEs but inflation and exchange rates have not. The conclusion of this study emphasizes the importance of appropriate policies to support the growth of the MSME sector and the economy as a whole.

The Effect of Payment Gateway Mediation on The Influence of Human Capital on Financial Performance Micro, Small and Medium Enterprises

Purpose: The purpose of this research is to empirically examine the relationship between human capital and the financial performance of Micro, Small, and Medium Enterprises (MSMEs), with payment gateways serving as a potential mediator. Given the significant contribution of MSMEs to economic growth and the challenges they face in financial management, this study aims to explore the role of human capital and payment gateways in enhancing the financial performance of MSMEs, thereby providing insights into strategies for improving the economic viability of this sector. Methods: The research employs a descriptive quantitative approach utilizing primary data. Hypothesis testing is conducted using WarpPLS 7.0 software. The study population consists of all MSMEs in the city of Surabaya, with a total of 100 respondents selected through random sampling. Data are collected to analyze the influence of human capital on financial performance, the impact of payment gateways on financial performance, and the potential mediating role of payment gateways in the relationship between human capital and financial performance. Results and Discussion: The test results indicate that human capital has a positive and significant effect on both the financial performance of MSMEs and the utilization of payment gateways. Additionally, payment gateways demonstrate a positive and significant impact on the financial performance of MSMEs. Furthermore, the findings suggest that payment gateways mediate the relationship between human capital and financial performance, indicating that the adoption of payment gateways enhances the link between human capital and financial outcomes in MSMEs. Implications of the Research: The research findings hold several implications for policymakers, MSMEs, and stakeholders involved in economic development. By highlighting the importance of human capital and payment gateways in improving the financial performance of MSMEs, this study underscores the significance of investing in workforce development and adopting digital payment solutions. Encouraging the use of payment gateways among MSMEs can mitigate financial management risks and enhance financial performance, thereby contributing to the overall economic growth and sustainability of the MSME sector. Originality/Value: This research contributes to the literature by examining the interplay between human capital, payment gateways, and financial performance in the context of MSMEs. By empirically testing the mediating effect of payment gateways, this study offers new insights into the mechanisms through which digital payment technologies can facilitate financial management and improve the economic viability of MSMEs. The findings provide practical implications for policymakers and MSME stakeholders seeking to leverage human capital and digital innovation to foster sustainable economic development.

A New Mode of MSME Empowerment Creating a Strong Indonesian Economy (Perspective on Business Competition Law)

Indonesia is included in the category of world economic power in terms of increasing micro, small and medium enterprises (MSMEs), which amount to 19 million. The business competition law in Indonesia in Law No. 5 of 1999 and the Business Competition Supervisory Commission (KPPU) can make MSMEs an important sector in the Indonesian economy through this institution. MSMEs that carry out business or partner with investors or large businesses reduce unfair business competition that can benefit both parties. However, along with the development of technology and people's habits, business actors, especially the MSME sector, are doing various activities to increase turnover by carrying out various business strategies so that their business can continue. Law No. 20 of 2008 concerning Micro, Small, and Medium Enterprises regulates MSMEs' activities, hoping that MSMEs can realize Indonesia as a world economic power with an empowerment model from upstream to downstream and can be easily recognized and accessed quickly. The research method used is descriptive normative legal research. As a result, the new model of the compass network in empowering MSMEs by accelerating the network, roadmap mode, and images can increase MSME production and be free from the influence of an uncertain economic situation.

Innovative Marketing Strategies in Human Resource Management: Improving Organizational and Marketing Performance in the Digital Era

In the era of digital marketing that continues to grow, the role of social media as an effective marketing platform is increasingly important, especially for the Micro, Small and Medium Enterprises (MSMEs) sector. To achieve success in doing business on social media, the development of human resources (HR) in accordance with the needs of the digital era is crucial. This research reviews the importance of human resource development in the context of digital marketing, especially in advancing the MSME sector on social media. The focus of this research is to consider the knowledge and skills needed by MSME employees in utilizing social media as an effective marketing tool. By implementing the right HR development strategy, MSMEs can get significant benefits, such as increased creativity, adaptation to changing trends, and the ability to compete in the digital marketing era . In the context of human resource development in the era of digital marketing to advance the MSME sector, special training , and access to the latest information and resources are important strategies that need to be implemented

Effect of sustainable leadership development and employee empowerment in MSME industry in India

Abstract In the 21st Century, The Micro Small, and Medium Enterprises (MSME) in India have established their credibility of mass employment and contributing to around 30% of India’s GDP in 2020. As of 2020, India is a house of 2.5 million units and proved the backbone of large sectors such as Manufacturing, Agriculture, Aviation, IT & ITeS, Pharma, Cement, and Automobile to name a few. India Government initiatives helped MSME to grow at the rate of 18.5% CAGR in 2019-2020. Indian Government is committed to bringing sustainable growth to the MSME sector. This brings the point to look into scalability issues often faced by these industries due to typical Owner and employee organization structure with lack of knowledge in recent HR practices. All the management and operational decisions are factored into top leadership (the business owner and his son’s). With the young entrepreneurs stepping into the family business, the face of this industry is bound to change further. Indian Government has doubled the budget for the MSME sector in FY22 that is $ 1.03 billion in FY 21 to $ 2.14 billion in FY22. With the Industrial revolution 5.0, India has witnessed multiple Unicorns in the last decade; therefore, it is bound to see maturity in leadership sustainability and focus on employees’ empowerment. The study goal is to look into labour law barriers faced by the MSME industry which is not covered in the FY22 vision document for the early adoption of a modern HRM approach to meet 5 trillion dollars business demands by 2025.

Investigating the Effect of E-Commerce, Capital and Labour on the Income of Micro, Small, and Medium Enterprises in Banda Aceh City, Indonesia

Micro, Small, and Medium Enterprises (MSMEs) in Indonesia are increasingly growing and innovating along with the development of information technology. Aceh, especially Banda Aceh City, is one of Indonesia's regions where MSMEs experience annual growth. Thus, the objectives of this study were to analyze the influence of e-commerce, capital, and labour on MSME income in Banda Aceh City with quantitative research. The population of this study comprised business units registered with the Ministry of Cooperative and SMEs of Banda Aceh City, with 100 business units selected as the research sample. The sampling technique employed was cluster sampling. Data collection utilized a questionnaire, and the specific analysis technique applied was the multiple linear regression test. The study found that e-commerce, capital, and labour positively and significantly influence MSME income in Banda Aceh City. These findings suggest that policymakers should promote e-commerce adoption among MSMEs through training and infrastructure support, enhance access to capital through tailored financial schemes, and invest in labour skills development via vocational training and industry partnerships. By combining these measures, Banda Aceh City can bolster the growth and sustainability of its MSME sector, fostering increased income generation and economic development.

The Performance Comparison of DBSCAN and K-Means Clustering for MSMEs Grouping based on Asset Value and Turnover

Background: This study focuses on the latest knowledge regarding Micro, Small and Medium Enterprises (MSMEs) as a current central issue. These enterprises have shown their significance in providing employment opportunities and contributing to the country’s economy. However, MSMEs face various challenges that must be addressed to optimize their outcomes. Understanding the characteristics of this group was crucial in formulating effective strategies. Objective: This study proposed to cluster or combine micro, small, and medium enterprises (MSMEs) data in a particular area based on asset value and turnover. As a result, this study aimed to gain insights into the MSME landscape in the area and provided valuable information for decision-makers and stakeholders. Methods: This study utilized two methods, namely the DBSCAN (Density-Based Spatial Clustering of Applications with Noise) method and the K-Means method. These methods were chosen for their distinct capabilities. DBSCAN was selected for its ability to handle noisy data and identify clusters with diverse forms, while K-Means was chosen for its popularity and ability to group data based on proximity. The study used a dataset containing MSME information, including asset values and turnover, collected from various sources. Results: The outcomes encompassed identifying clusters of MSMEs based on their closeness in the feature space within a specific region. Optimizing the clustering outcomes involved modifying algorithm parameters like epsilon and minimum points for DBSCAN and the number of clusters for K-Means. Furthermore, this study attained a deeper understanding of the arrangement and characteristics of MSME clusters in the region through a comparative analysis of the two methodologies. Conclusion: This study offered perspectives on clustering MSMEs based on asset value and turnover in a specific region. Employing DBSCAN and K-Means methodologies allowed researchers to depict the MSME landscape and grasp the business attributes of these enterprises. These results could aid in decision-making and strategic planning concerning the advancement of the MSME sector in the mentioned area. Future study may investigate supplementary factors and variables to deepen comprehension of MSME clusters and promote regional growth and sustainability. Keywords: Asset Value, Clustering, DBSCAN, K-Means, Turnover

Exploring Crowd Funding as a Sustainable Financing Option among MSME in Odisha: A Case Study in Khurda District

The Micro, Small, and Medium Enterprises (MSMEs) sector is an essential and dynamic part of the Indian economy. However, these small businesses often face challenges when it comes to raising funds. Crowd funding has become a revolutionary concept in the field of finance, transforming how people and organisations raise money for their endeavours. This study aims to assess the factors affecting crowd funding as a sustainable financing option among Micro, Small, and Medium Enterprises (MSMEs) in Odisha. It also focuses on understanding the level of awareness and knowledge about crowd funding as a new and innovative financial model among the Populace of Odisha. Based upon review of literature and further interviews with the managers of MSME the five key variables which affects the adoption of crowd funding was identified. The survey involved 385 MSMEs from various industrial clusters across Khurda district in Odisha and the samples were selected using the convenience sampling technique. The findings of the study revealed that there is a moderate level of awareness of crowd funding among MSMEs in Odisha. By understanding the current perceptions and attitudes of people of MSMEs in Odisha towards crowd funding, various stakeholders such as investors, regulators, and policymakers can make more informed decisions that can potentially empower the MSME sector and drive economic growth in the region.

ANALYSIS OF THE APPLICATION OF MALCOLM BALDRIGE CRITERIA (MBCFPE) TO BUSINESS ACTORS IN INDONESIA

This research explores the challenges and opportunities for Micro, Small and Medium Enterprises (MSMEs) in Indonesia, focusing on the implementation of the Malcolm Baldrige Criteria for Performance Excellence. Although the MSME sector in Indonesia is very large, limited capital, access to technology, and market reach hinder their competitiveness against larger companies. Along with that, the proliferation of online media adds complexity to the business landscape, demanding rapid adaptation. Strategic human resource management is emerging as a critical factor for long-term organizational development. The research uses the Malcolm Baldrige Award as a benchmark for performance appraisal, which includes leadership, strategic planning, customer focus, measurement and analysis, workforce focus, process management, and results. The study sampled six businesses, revealing the varying impact of these criteria on their performance. Key findings highlight the key role of leadership and customer-focus in influencing MSME outcomes, while other criteria show mixed and sometimes less significant effects. Full implementation challenges include a lack of a clear vision-mission statement, lack of organizational structure, and limited emphasis on product innovation. The research concludes with recommendations for MSMEs in Indonesia, emphasizing the importance of developing a clear vision, improving organizational structure, and increasing focus on innovation. These findings provide deep insight into the dynamics of MSMEs and offer strategic direction to navigate Indonesia's evolving business landscape.

Measuring the impact of information and communication technology investment on the profitability of Indian manufacturing MSME

PurposeThis study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the Indian context.Design/methodology/approachThis study used a framework based on the ICT investment and firm size, measuring the impact on profit before depreciation, interest, tax and amortisation of MSME by taking a random sampling of 300 Indian MSME manufacturing firm’s secondary data from the Prowess database. This framework was analysed using the design of experiment (DoE) technique.FindingsThe study showed that ICT investment has a significant positive relationship with profitability. This study examines the different ICT investment levels to predict investment strategies and fine-tune profit targets. The critical finding is that ICT investment maximises profit at one million rupees. This discovery aids MSME leaders’ sustainable business decision-making.Research limitations/implicationsThis study has an explicit limit to the Indian context, where the firm requirements of countries are different, and these findings need to be validated with many operating variables and applied to more firms with more data. Even so, as a theoretical implication, this study took a novel approach to ICT adoption (through ICT investment) in the Indian MSME sector with guiding levels of ICT investment for each type of firm (i.e. micro, small and medium). This study opens new avenues for investigating researchers and stakeholders by exploring other factors responsible for ICT adoption.Practical implicationsThis study uniquely provides practitioners with the functional level of ICT investment for MSMEs in the Indian context. These finding guides top management to make strategic ICT adoption decisions with information symmetry. At the same time, these findings suggest financial institutions astern their credit programme to provide credit for ICT investment in MSMEs.Social implicationsThis study highlights the value of ICT as a practical resource for business owners that significantly makes MSMEs more informed and profitable, thus creating more jobs and incrementing the country’s gross domestic product (GDP).Originality/valueThis study offers unique empirical findings on how decision makers in MSMEs maximise profits through optimal ICT investment levels depending upon the firm size in an emerging economy like India. There is evidence in the study to conclude that ICT is a need of MSME and has implications for firm performance.

Digitization as an Adaptation and Resilience Measure for MSMEs amid the COVID-19 Pandemic in Japan: Lessons from the Food Service Industry for Collaborative Future Engagements

Restrictions and other stringent countermeasures due to the COVID-19 pandemic have wreaked havoc on many enterprises over the past few years. The effect on Micro, Small, and Medium Enterprises (MSMEs) is believed to be far-reaching. In most countries, the MSME sector provides the maximum number of jobs, and its resilience is core to the livelihood of that society; Japan is no exception to this. The food service industry was classified as an essential service during the pandemic, and advancements in technology and other digital innovations were seen as revolutionary to many enterprises to diversify their business models to reduce losses. This study reviews how MSMEs in the food service industry utilized technologies and innovations to adapt to the challenges and enhance their resilience. The paper reviews secondary datasets to discuss the perspectives of MSMEs and the impact of the pandemic, as well as utilizing Gotanda Eats as a case example in Japan to understand the method of digital adaption towards resilience. The Gotanda Eats platform was crucial for the survival of the five restaurants involved because it transformed their old business operations into the one that connects them to customers while observing infection prevention protocols. Despite the challenges that are visible in the delivery aspect of the platform, the operation shows that digitization and digital transformation are vital for MSMEs in times of crisis. The World Economic Forum 2021 report has focused on digital power concentration as a new risk, the current study shows that digitization in food-related MSMEs was a critical survival strategy. The study recommends that local authorities take a keen interest in supporting local businesses during hard times.

BIG DATA PIPELINE INFRASTRUCTURE DESIGN IN MSME E-COMMERCE SYSTEMS WITH A FOCUS ON DATA SOURCE PROCESSING USING ORCHESTRATION TOOLS

In the digital era, Micro, Small and Medium Enterprises (MSMEs) need to utilize data to improve their business performance, such as increasing customer targets, product development and pricing strategies. Apache Airflow is a powerful tool for building data scraping pipelines that are scalable, flexible, and easy to monitor. One of them is the Central Java MSME data scraping pipeline, which collects business registration information, business type, location, contacts, products, and financial information from various websites, including the Central Java Provincial Government website, basic goods price comparison tables, and specialized news sites. The captured data is stored in a data warehouse for further analysis by the Central Java souvenir entrepreneurs association (ASPOO) in the region. Apache Airflow is used to manage the scraping pipeline in the Central Java MSME E-Commerce system and ensure it runs smoothly. Apache Airflow also has a built-in dashboard for monitoring pipelines and troubleshooting issues. Overall, scraping pipeline in the Central Java MSME e-commerce system is a valuable tool for collecting and analyzing data on the MSME sector in Central Java. This pipeline is scalable, flexible and easy to use, and can be adapted to different user needs and can be integrated with various systems.

The Role of Gender, Financial Literacy, and Love of Money in the Motivation and Personal Financial Management of Micro, Small, and Medium Enterprises (MSME) Actors

Background: Gender, financial literacy, and the love of money are pivotal factors influencing the motivation and personal financial management strategies of individuals engaged in micro, small, and medium enterprises (MSMEs). Understanding how these variables interplay can provide valuable insights into enhancing financial decision-making within this crucial economic sector. This study aims to examine the relationship of gender, financial literacy, love of money, motivation and personal financial management of MSME Actors. Method: The empirical analysis was conducted using a sample of 150 MSME actors. This study used online survey for the data collection. After passing reliability and validity tests, the data were analyzed with partial least squares structural equation modeling. Results: The research results indicate that gender has a significant positive direct influence on motivation. Financial literacy also has a significant direct positive influence on motivation. Furthermore, the love of money has a significant positive direct influence on motivation. Finally, motivation also has a significant positive influence on financial management. Conclusion: In conclusion, this study highlights the intricate relationship between gender, financial literacy, the love of money, motivation, and personal financial management among MSME actors. The findings underscore the importance of addressing gender-specific factors and promoting financial literacy to enhance motivation and improve financial decision-making within the MSME sector. Moreover, recognizing the nuanced influence of attitudes towards money can further inform strategies to empower and support individuals engaged in these enterprises, ultimately contributing to their long-term financial success.

Performance reconfiguration in Indonesian MSMEs: Digital transformation, emerging skills, and organizational health

Organisational competitiveness hinges on the strategic integration of digital transformation (DT), emerging skills (ES), and organizational health (OH) to foster sustainable performance. Despite the pivotal role of these variables, limited research investigates their interplay in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This study addresses this gap by empirically examining how MSMEs navigate challenges and opportunities amid the digital transformation landscape. Specifically, the research probes the intermediary function of the synergistic integration between DT and ES, influencing organisational performance (OP) moderated by OH. Utilizing a validated questionnaire, a three-month convenience sample involved 120 MSME managers. Partial least squares structural equation modelling analysis was employed to assess hypotheses. Findings indicate a significant relationship between DT, ES, and OH, with DT influencing OP. Interestingly, ES alone does not impact OP. Structural equation modelling reveals OH as a mediating variable between DT, ES, and OP. While the proposed model is preliminary, offering avenues for further research, this study underscores the importance of emerging skills in the MSME sector, contributing to a nuanced understanding of organisational competitiveness dynamics.

Factors affecting the intention to use QRIS on MSME customers

This study investigates the factors influencing the intention to use the Quick Response Code Indonesian Standard (QRIS) among Micro, Small, and Medium Enterprises (MSMEs) customers in Indonesia. In this study, a quantitative approach was taken with the survey method using an online questionnaire that was distributed to 240 MSME customers. The collected data were analyzed using the Statistical Package for the Social Sciences (SPSS) and Structural Equation Modeling (SEM) using the Analysis of Moment Structures (AMOS) 24 to test their validity and reliability. The study results show that factors such as perceived benefits, knowledge, and perceived safety significantly affect customer confidence in using QRIS. However, perceived ease of use does not significantly affect trust. In addition, perceived usefulness, knowledge, and trust significantly influence the intention to use QRIS, while perceived ease of use and perceived safety have no significant effect. Based on these findings, increasing perceptions of benefits, knowledge, and trust is critical to encouraging the use of QRIS among MSME customers. Although ease of use and security do not directly affect usage intentions, ensuring an easy user experience and providing security guarantees for MSME customers are still essential. This study contributes to the literature by increasing understanding of the factors driving QRIS adoption in SMEs. These findings can assist in developing effective strategies to increase the use of QRIS and the growth of the MSME sector, emphasizing benefits and advantages, increasing customer knowledge, and building trust in security.

ERP-Based Management Information System for MSMEs in Indonesia: A Systematic Literature Review

This study is a systematic literature review on ERP-Based Management Information Systems for MSMEs (Micro, Small and Medium Enterprises) in Indonesia. Through an analysis of previous studies, the findings show that the use of ERP can integrate various business functions in one integrated system, automate business processes, and provide fast access to real-time information, thereby increasing the operational efficiency and productivity of MSMEs. The research method in this paper is carried out systematically, starting with identifying research questions and determining the paper's contribution. Furthermore, a search strategy was carried out, selecting relevant and quality documents and extracting data to produce output in this study. The results show that ERP provides integrated data access, enables better and more informed decision-making, and helps plan business growth better. Although ERP adoption requires initial investment and wise management, the use of ERP has proven to impact the competitiveness and growth of MSMEs in Indonesia positively. This study will provide an in-depth understanding of the ERP-Based Management Information System and contribute to developing strategies and policies that support the growth and sustainability of the MSME sector in Indonesia.

Pemberdayaan UMKM Kelapa Gongseng Aceh Melalui Pemasaran Berbasis Digital Dalam Upaya Menembus Pasar Global

Micro, small and medium enterprises (MSMEs) are one of the primary drivers of the Indonesian economy, as a result if the MSME sector is disrupted, the national economy could also be eroded. According to the Central Statistics Agency (BPS), in 2021 the number of MSMEs will reach 65.46 million units. Maju Sejahtera is an MSME in Panjang Mesjid Village, Panjang Subdistrict, Bireuen Regency, Aceh Province which operates in the food service sector producing gongseng coconut. This group has been running its business since 2019 and produces around 30-50 kg of gongseng coconut every week with a market selling price of around 50 thousand per kilogram. This fishing business group has 5 freelance workers and has assets of around 24 million rupiah. However, recently the production and sales of gongseng coconut have decreased, this is due to the Covid-19 pandemic that has hit the world, so it indirectly affects the demand for gongseng coconut. Before the Covid-19 pandemic, MSME Maju Sejahtera had an obstacle in running a business in the field of product marketing, the system that had been used was still traditional, namely marketing to local traders or the products were taken by collectors, then MSME Maju Sejahtera had no business management or financial management, during This often causes problems in financial management, namely business finances are often combined with family finances so it is very difficult to see profits in the business. The aim of this service activity is to increase partners' knowledge in business management and digital marketing. The implementation method is to provide business management training and direct digital sales practice through marketplaces and social media. The result of this activity is an increase in partners' knowledge about business management and better digital marketing.

Mengungkap Keterkaitan Inklusi dan Literasi Keuangan dengan Kinerja dan Keberlanjutan UMKM di Perkotaan

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.