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The Effect of Financial Literacy on the Sustainability of Micro, Small, and Medium, Enterprises with Access to Finance as a Mediating Variable

Author

Listed:
  • Sri Zaniarti

    (Business Faculty, Maranatha Christian University, Bandung Indonesia)

  • Sienly Veronica

    (Business Faculty, Maranatha Christian University, Bandung Indonesia)

  • Raden Arvi Arsytania

    (Business Faculty, Maranatha Christian University, Bandung Indonesia)

Abstract

Large-scale social restrictions (PSBB) during the pandemic, and the decline in people’s purchasing power, caused problems for many MSMEs, with some even folding. The business actors must have the good financial literacy to manage funds and enhance business survival under challenging conditions. The research aims to examine the effect of financial literacy on business sustainability and access to finance as a mediating variable that strengthens the relationship between financial literacy and sustainability. It was conducted by taking MSME samples in the West Bandung Regency area using the probability sampling technique with cluster random sampling type. The data collected from the responses of 203 MSMEs was processed using the Path Analysis method with an error rate of 5%. These results showed that financial literacy affects sustainability, and access to finance cannot mediate the effect of financial literacy on sustainability.

Suggested Citation

  • Sri Zaniarti & Sienly Veronica & Raden Arvi Arsytania, 2022. "The Effect of Financial Literacy on the Sustainability of Micro, Small, and Medium, Enterprises with Access to Finance as a Mediating Variable," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 9(1), pages 17-31, November.
    • Handle: RePEc:mgs:ijmsba:v:9:y:2022:i:1:p:17-31
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.91.1002
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    References listed on IDEAS

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    1. Salman Ali & Guihua Li & Ping Yang & Kramat Hussain & Yousaf Latif, 2020. "Unpacking the importance of intangible skills in new product development and sustainable business performance; strategies for marketing managers," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-26, September.
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    More about this item

    Keywords

    Financial Literacy; Access to Finance; Sustainability; MSME;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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