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

Erna Listyaningsih, Rahyono Rahyono, Apip Alansori and Amirul Mukminin

Economic Studies journal, 2024, issue 1, 108-127

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.

JEL-codes: G5 G53 L2 M1 (search for similar items in EconPapers)
Date: 2024
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