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Financial Literacy, Financial Inclusion, and Financial Statements on MSMEs’ Performance and Sustainability with Business Length as a Moderating Variable

Author

Listed:
  • Erna Listyaningsih
  • Rahyono Rahyono
  • Apip Alansori
  • Amirul Mukminin

Abstract

Previous studies have shown a connection between financial literacy, financial inclusion, financial statements, MSME performance, and MSME sustainability. The results of the relationship between these variables varied, according to several studies. Therefore, the aim of this study was to investigate, the impact of financial literacy, financial inclusion, and financial statements on the performance and sustainability of MSME, moderated by the variable of business length. Bandar Lampung, Indonesia is situated in a very advantageous location with regard to the geopolitical constellations at the global, governmental, and regional levels. As a result, 100 MSME actors in Bandar Lampung, Indonesia, were asked to fill out a questionnaire, and the data was then analysed using PLS-SEM. The study found that each of these elements influenced MSME performance and sustainability in a positive way. Moreover, the sustainability of MSMEs is also positively impacted by MSME performance. Furthermore, the length of the business also improves the correlation between these factors. These results imply that business actors are more cognizant of the significance of the accounting process in their operations the longer a business has been in operation. The other findings indicate that the longer a business has been in operation, the more its business development will be influenced by that fact, as a well-established business will typically have more experience and grow more rapidly.

Suggested Citation

  • Erna Listyaningsih & Rahyono Rahyono & Apip Alansori & Amirul Mukminin, 2024. "Financial Literacy, Financial Inclusion, and Financial Statements on MSMEs’ Performance and Sustainability with Business Length as a Moderating Variable," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 108-127.
    • Handle: RePEc:bas:econst:y:2024:i:1:p:108-127
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    References listed on IDEAS

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    1. Ammad Zafar & Sadaf Mustafa, 2017. "SMEs and its Role in Economic and Socio-Economic Development of Pakistan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 195-205, October.
    2. Dwitya Aribawa, 2016. "Pengaruh literasi keuangan terhadap kinerja dan keberlangsungan UMKM di Jawa Tengah," Jurnal Siasat Bisnis, Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 20(1), pages 1-13.
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    More about this item

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • G5 - Financial Economics - - Household Finance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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