Eurasia: Economics & Business (Jul 2023)
THE EFFECT OF FINANCIAL INCLUSION AND FINANCIAL LITERACY ON THE PERFORMANCE AND SUSTAINABILITY OF MSMEs IN GIANYAR DISTRICT
Abstract
MSMEs in Gianyar Regency have a significant role in supporting the community's economic growth. The sustainability of MSMEs in Gianyar Regency is an important thing that needs attention. Financial inclusion, financial literacy and the performance of MSMEs are factors that affect the sustainability of MSMEs. The purpose of this study was to examine the effect of financial inclusion and financial literacy on the performance of MSMEs in Gianyar Regency, to examine the effect of financial inclusion, financial literacy and MSMEs performance on the sustainability of MSMEs in Gianyar Regency and to examine the effect of financial inclusion and financial literacy on MSME sustainability mediated by MSME performance. in Gianyar Regency. The research location is in Gianyar Regency. The object of this research is UMKM in Gianyar Regency. The population in this study amounted to 75,620 SMEs. The number of samples taken was 100 SMEs with the probability sampling method using the proportionate stratified random sampling method. Data was collected by distributing questionnaires. The test analysis technique used is PLS-based SEM. The results of the analysis show that the variables financial inclusion and financial literacy have a positive and significant effect on MSME performance, financial inclusion and financial literacy have a positive and insignificant effect on MSME sustainability, MSME performance has a positive and significant effect on MSME sustainability, MSME performance has a positive and significant mediating role the effect of financial inclusion and financial literacy on the sustainability of MSMEs in Gianyar Regency.
