The influence of financial literacy and access to capital on the performance of MSMs with financial technology as a moderating variable
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Abstract
The rapid growth of MSMEs in Kupang City faces significant challenges, including limited financial literacy, difficulties in accessing capital, and the integration of financial technology (fintech). This study aims to examine the influence of financial literacy and access to capital on the performance of MSMEs, with financial technology as a moderating variable. The research adopts a quantitative approach by collecting data through surveys from a sample of 100 MSME owners in Kupang City. The data is analyzed using Structural Equation Modeling (SEM) with the help of SmartPLS 4 software to test the relationships among the variables. The results are expected to demonstrate that financial literacy and access to capital significantly affect MSME performance, and that financial technology strengthens these relationships. The findings will contribute to the existing literature by providing empirical evidence on the importance of fintech in enhancing MSME growth and will offer policy recommendations for improving financial literacy, capital access, and technology adoption in MSMEs.
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How to Cite
Manafe, J. D., Sanga, M. H., & Wungubelen, D. F. (2024). The influence of financial literacy and access to capital on the performance of MSMs with financial technology as a moderating variable. Enrichment : Journal of Management, 14(4), 773-782. https://doi.org/10.35335/enrichment.v14i4.2102
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Arifin, B., Wicaksono, E., Tenrini, R. H., Wardhana, I. W., Setiawan, H., Damayanty, S. A., Solikin, A., Suhendra, M., Saputra, A. H., & Ariutama, G. A. (2020). Village fund, village-owned-enterprises, and employment: Evidence from Indonesia. Journal of rural studies, 79, 382-394.
Bire, A. R. (2023). Pengaruh Penerapan Sistem Informasi Keuangan Terhadap Kinerja Informasi Keuangan pada PT. Bank Nusa Tenggara Timur. Journal of Practical Management Studies, 1(2), 1-7.
Bire, A. R., Sauw, H. M., & Maria, M. (2019). The effect of financial literacy towards financial inclusion through financial training. International journal of social sciences and humanities, 3(1), 186-192.
Candraningrat, I., Abundanti, N., Mujiati, N., & Erlangga, R. (2021). The role of financial technology on development of MSMEs. Accounting, 7(1), 225-230.
Dima, R. P., & Sinaga, M. (2024). Analisis Kelayakan Bisnis Ditinjau dari Aspek Pemasaran pada Usaha Kuliner Ayam Geprek MorroChicken Kupang. Journal of Practical Management Studies, 2(1), 1-8.
Erlangga, H. (2022). Micro Financial Sharia Non-bank Strategic Analysis: a Study at BMT Beringharjo, Yogyakarta. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 4(2), 1677-1686.
Fanggidae, F. O. (2020). Analysis of Level of Sensitivity of Labor Absorption Based on Main Employment Status in Kupang City 2011-2020. Jurnal Inovasi Kebijakan, 6(2), 1-7.
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Jessika, Y. R., Suhardiyah, M., Estiasih, S. P., Saraswati, R. A., & Amna, L. S. (2024). Career Women's Interest in Using Financial Technology. International Journal of Economics, Business and Innovation Research, 3(01), 256-272.
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Kharisma, D. B. (2021). Urgency of financial technology (Fintech) laws in Indonesia. International Journal of Law and Management, 63(3), 320-331.
Latifiana, D. (2017). Studi literasi keuangan pengelola usaha kecil menengah (UKM). Seminar Nasional Pendidikan Ekonomi Dan Bisnis 2017,
Lubis, K. S., & Irawati, L. (2022). The Effect of Financial Literacy and Capital Management on MSME Performance. Asean International Journal of Business, 1(1), 77-85.
Maria, M. (2022). Impact of Financial Literacy on Financial Behavior and Entrepreneurial Intention: Gender as a Moderator. Study on Undergraduate Students in Kupang City. Enrichment: Journal of Management, 12(4), 3190-3195.
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Marnisah, L., & Kore, J. R. R. (2024). Peningkatan Keunggulan Bersaing UMKM di Kota Kupang Semasa Pandemi Covid-19: MSME Marketing Performance in Kupang City During the Covid-19 Pandemic. Jurnal Multidisiplin Ilmu Indonesia (JMII), 1(1), 58-66.
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Muthukannan, P., Tan, B., Tan, F. T. C., & Leong, C. (2021). Novel mechanisms of scalability of financial services in an emerging market context: Insights from Indonesian Fintech Ecosystem. International Journal of Information Management, 61, 102403.
Pakkanna, M., Rasulong, I., & Akhmad, S. I. W. (2020). Microfinance institutions and women empowerment: evidence in the rural areas of Tangerang, Indonesia. International Journal of Scientific and Technology Research, 9(2), 3994-3999.
Ratnawati, K. (2020). The impact of financial inclusion on economic growth, poverty, income inequality, and financial stability in Asia. The Journal of Asian Finance, Economics and Business, 7(10), 73-85.
Rokhman, M. T. N., Ratnawati, R., & Rahayu, Y. N. (2023). Relationship Between Human Capital and Msmes Performance With Competitive Advantage As a Mediation. Jurnal Aplikasi Manajemen, 21(1), 191-204.
Susan, M. (2020). Financial literacy and growth of micro, small, and medium enterprises in west java, indonesia. In Advanced issues in the economics of emerging markets (pp. 39-48). Emerald Publishing Limited.
Wahyuni, S., Azizah, S. N., & Zulfikar, Z. (2021). Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions. Banks and Bank Systems, 16(3), 104.
Wongso, S. H., Gana, F., & Kerihi, A. S. (2020). The effect of enterpreneurship motivation, enterpreneurship competency, and financial literation on msmes in kupang city. International Journal of Scientific and Technology Research, 9(2), 5236-5241.
Yap, R. J. C., Komalasari, F., & Hadiansah, I. (2018). The effect of financial literacy and attitude on financial management behavior and satisfaction. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi dan Organisasi, 23(3), 4.
Adiandari, A. M., & Yanti, N. L. K. P. (2022). The effect of financial literacy and entrepreneurship orientation on the performance of small-medium enterprise ‘tenun gringsing’in tenganan village, karangasem regency. Majalah Ilmiah Bijak, 19(2), 279-291.
Aribawa, D. (2016). The effect of financial literacy on the performance and sustainability of MSMEs in Central Java. Journal of Business Strategy, 20(1), 1-13.
Arifin, B., Wicaksono, E., Tenrini, R. H., Wardhana, I. W., Setiawan, H., Damayanty, S. A., Solikin, A., Suhendra, M., Saputra, A. H., & Ariutama, G. A. (2020). Village fund, village-owned-enterprises, and employment: Evidence from Indonesia. Journal of rural studies, 79, 382-394.
Bire, A. R. (2023). Pengaruh Penerapan Sistem Informasi Keuangan Terhadap Kinerja Informasi Keuangan pada PT. Bank Nusa Tenggara Timur. Journal of Practical Management Studies, 1(2), 1-7.
Bire, A. R., Sauw, H. M., & Maria, M. (2019). The effect of financial literacy towards financial inclusion through financial training. International journal of social sciences and humanities, 3(1), 186-192.
Candraningrat, I., Abundanti, N., Mujiati, N., & Erlangga, R. (2021). The role of financial technology on development of MSMEs. Accounting, 7(1), 225-230.
Dima, R. P., & Sinaga, M. (2024). Analisis Kelayakan Bisnis Ditinjau dari Aspek Pemasaran pada Usaha Kuliner Ayam Geprek MorroChicken Kupang. Journal of Practical Management Studies, 2(1), 1-8.
Erlangga, H. (2022). Micro Financial Sharia Non-bank Strategic Analysis: a Study at BMT Beringharjo, Yogyakarta. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 4(2), 1677-1686.
Fanggidae, F. O. (2020). Analysis of Level of Sensitivity of Labor Absorption Based on Main Employment Status in Kupang City 2011-2020. Jurnal Inovasi Kebijakan, 6(2), 1-7.
Fatah, M. I., Asnawi, N., Segaf, S., & Parmujianto, P. (2023). Case study at KSPPS BMT UGT nusantara Indonesia an analysis of using mobile applications to increase fee-based income. Enrichment: Journal of Management, 13(2), 1182-1191.
Jessika, Y. R., Suhardiyah, M., Estiasih, S. P., Saraswati, R. A., & Amna, L. S. (2024). Career Women's Interest in Using Financial Technology. International Journal of Economics, Business and Innovation Research, 3(01), 256-272.
Junianto, Y., Kohardinata, C., & Silaswara, D. (2020). Financial literacy effect and Fintech in investment decision making. Primanomics: Jurnal Ekonomi & Bisnis, 18(3), 150-168.
Kharisma, D. B. (2021). Urgency of financial technology (Fintech) laws in Indonesia. International Journal of Law and Management, 63(3), 320-331.
Latifiana, D. (2017). Studi literasi keuangan pengelola usaha kecil menengah (UKM). Seminar Nasional Pendidikan Ekonomi Dan Bisnis 2017,
Lubis, K. S., & Irawati, L. (2022). The Effect of Financial Literacy and Capital Management on MSME Performance. Asean International Journal of Business, 1(1), 77-85.
Maria, M. (2022). Impact of Financial Literacy on Financial Behavior and Entrepreneurial Intention: Gender as a Moderator. Study on Undergraduate Students in Kupang City. Enrichment: Journal of Management, 12(4), 3190-3195.
Maria, M. (2023). The Effect of Materialism and Frugality on Over-Indebtedness. The Moderating Role Of Financial Literacy. Jurnal Ekonomi, 12(02), 1160-1167.
Marnisah, L., & Kore, J. R. R. (2024). Peningkatan Keunggulan Bersaing UMKM di Kota Kupang Semasa Pandemi Covid-19: MSME Marketing Performance in Kupang City During the Covid-19 Pandemic. Jurnal Multidisiplin Ilmu Indonesia (JMII), 1(1), 58-66.
Maulana, R., Murniningsih, R., & Prasetya, W. A. (2022). The Influence Of Financial Literacy, Financial Inclusion, And Fintech Toward Business Sustainability In Smes. Jurnal Ilmiah Manajemen, 440(4), 440-452.
Muthukannan, P., Tan, B., Tan, F. T. C., & Leong, C. (2021). Novel mechanisms of scalability of financial services in an emerging market context: Insights from Indonesian Fintech Ecosystem. International Journal of Information Management, 61, 102403.
Pakkanna, M., Rasulong, I., & Akhmad, S. I. W. (2020). Microfinance institutions and women empowerment: evidence in the rural areas of Tangerang, Indonesia. International Journal of Scientific and Technology Research, 9(2), 3994-3999.
Ratnawati, K. (2020). The impact of financial inclusion on economic growth, poverty, income inequality, and financial stability in Asia. The Journal of Asian Finance, Economics and Business, 7(10), 73-85.
Rokhman, M. T. N., Ratnawati, R., & Rahayu, Y. N. (2023). Relationship Between Human Capital and Msmes Performance With Competitive Advantage As a Mediation. Jurnal Aplikasi Manajemen, 21(1), 191-204.
Susan, M. (2020). Financial literacy and growth of micro, small, and medium enterprises in west java, indonesia. In Advanced issues in the economics of emerging markets (pp. 39-48). Emerald Publishing Limited.
Wahyuni, S., Azizah, S. N., & Zulfikar, Z. (2021). Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions. Banks and Bank Systems, 16(3), 104.
Wongso, S. H., Gana, F., & Kerihi, A. S. (2020). The effect of enterpreneurship motivation, enterpreneurship competency, and financial literation on msmes in kupang city. International Journal of Scientific and Technology Research, 9(2), 5236-5241.
Yap, R. J. C., Komalasari, F., & Hadiansah, I. (2018). The effect of financial literacy and attitude on financial management behavior and satisfaction. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi dan Organisasi, 23(3), 4.