The Role of Financial Literacy and Market Orientation in Increasing MSME Business Success in Indonesia

Leonita Siwiyanti, Suryana, Hari Mulyadi and Chairul Furqan
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Leonita Siwiyanti: Universitas Pendidikan Indonesia
Suryana: Universitas Pendidikan Indonesia
Hari Mulyadi: Universitas Pendidikan Indonesia
Chairul Furqan: Universitas Pendidikan Indonesia

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 933-937 from Springer

Abstract: Abstract This study aims to analyse the influence of financial literacy and market orientation on the business success of MSMEs in Indonesia, particularly in food sector in Sukabumi. This study explores the importance of financial literacy and market orientastion as key factors in improving the performance and sustainability of micro, small and medium enterprises (MSMEs) that form the backbone of the local economy. Using quantitative method with multiple linear regression analysis, data was obtained through questionnaires distributed to 100 MSMEs. The results showed that financial literacy and market orientation had a positive and significant influence on MSMEs business success with a combined contribution of 73,5%. A strong market orientation allowed MSMEs to target customers more effectively, while adequate financial literacy supported better decision-making in financial management and business invesrment. These findings underscore the important role of financial literacy in creating more competitive and economically stable MSMEs. The originality of study lies in the in-depth analysis of the interaction between financial literacy and market orientation in the context of food sector MSMEs in Indonesia, which has not been widely discussed in previos literature. The implications of this study include the importance of collaboration between the government and MSMEs players to improve access to financial literacy training and the implementation of effective marketing strategies. This will help MSMEs strengthen their competitiveness, improve their financial management, and expand their market share. As such, MSMEs are expected to better adapt to market changes and economic challenges, contribute to the local economy, and support long-term business sustainability.

Keywords: Micro Small Medium Enterprises; Financial Literacy; Market Orientation; Business Success (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-817-2_109

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DOI: 10.2991/978-94-6463-817-2_109

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