Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


The Influence of Financial Literacy on Smes Performance Through Access to Finance And Financial Risk Attitude as Mediation Variables

Author(s): Agung Dharmawan Buchdadi, Amelia Sholeha, Gatot Nazir Ahmad, Mukson

The Small and Medium-size Enterprises (SMEs) sector has the crucial role to increase economic growth in emerging countries. Then, the purpose of this study was to examine the determinant variable of the SMEs performance namely financial literacy of the manager. This study utilize acces to financial product and financial risk risk attitude as the mediation variables. This type of research uses a quantitative approach and the structural equation modeling (SEM) is used to analyse the data. The samples of this study 70 person who managed the SMEs in Brebes district in Central Java due to there are a lot of best performer SMEs in Indonesia from this area. This study found the positive impact of financial literacy, access to finance, and financial risk attitude on the MSME performance. This study also found the mediation role of access to finance and the financial risk attitude on the relationship between financial literacy on MSMEs performance. From the descriptive of statistics, it is also found that the weakness of the manager of the MSME regarding the bank and capital market product. The implication of these findings the government needs to create a program to enhance the level of financial literacy among the manager of the MSMEs especially the skills and knowledge regarding the bank product, risk management, and capital market product.

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