Volume 1 Number 2 Year - 2019
Number of articles: 110
FINANCIAL LITERACY AS A DETERMINANT FACTOR IN BUSINESS GROWTH FOR CREATIVE MSMES IN YOGYAKARTA
Authors: Siti Resmi, Reza Wihdar Pahlevi, Fran Sayekti
Abstract: Research on the influence of financial literacy on MSMEs business growth has been carried out. However, creative MSMEs financial literacy related to understanding accounting and budgeting is rarely valued. This study focuses on assessing the effect of financial literacy in particular an understanding of debt management, budgeting, bank services, and accounting for the growth of Creative MSMEs. Creative MSMEs in Yogyakarta are chosen because Yogyakarta is a region that is rich in traditional culture and diverse character of its inhabitants, thus encouraging the development of the potential of Creative MSMEs. Research uses primary data sources on Creative MSMEs in Yogyakarta. Data collection is done through an independent questionnaire. The technique of analyzing multiple linear regression data is used to test the effect of financial literacy on business growth. The results of the study found that financial literacy influenced business growth. The research implications are Creative MSMEs who have a good understanding of financial literacy can make the right decisions so that their business growth increases. Good financial literacy encourages Creative MSMEs to be able to optimally absorb various programs and incentives from the government and accountable them accountably. This research also provides insight to stakeholders who have a role to increase financial literacy in Indonesia.
Keywords: financial literacy, busniness growth, creative micro small medium enterprise
DOI: 10.24874/PES01.02.007   Downloads: 74