Enhancing MSME performance: the role of FinTech literacy, financial literacy and competitive pressure

I. Gusti Ketut Agung Ulupui, Gentiga Muhammad Zairin, Febe Dwi Sutanti, Hera Khairunnisa, Adam Zakaria and Septi Nurmalita

World Review of Entrepreneurship, Management and Sustainable Development, 2025, vol. 21, issue 4, 1-26

Abstract: This study investigates the influence of financial technology literacy, financial literacy and competitive pressure on the performance of Micro, Small and Medium Enterprises (MSMEs) in Jakarta. Data were collected from 77 MSME owners and managers through a structured questionnaire distributed with the assistance of the Jakarta MSME Office (Dinas PPKUKM). The responses were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that financial technology literacy and financial literacy have significant positive effects on MSME performance, while competitive pressure also has a positive but relatively smaller effect. These findings emphasise the importance of strengthening financial capabilities and digital readiness among MSMEs. Practically, the study recommends targeted financial literacy training programs, the provision of simple FinTech adoption toolkits and mentoring initiatives to enhance MSMEs' readiness to compete in dynamic markets.

Keywords: MSME performance; financial literacy; financial technology; competitive pressure. (search for similar items in EconPapers)
Date: 2025
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