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

Sri Zaniarti, Sienly Veronica and Raden Arvi Arsytania
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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

International Journal of Management Science and Business Administration, 2022, vol. 9, issue 1, 17-31

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.

Keywords: Financial Literacy; Access to Finance; Sustainability; MSME (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/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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