Abstract :

Bandung is a city in Indonesia that is active in promoting innovation, business creation, and mentoring small businesses. One of the efforts is to provide mentors to develop MSME businesses. In addition, Bandung City also holds various business coaching programs for MSME actors. Thus, MSMEs in Bandung City can develop their business better. There are many problems faced by MSMEs, but one of the problems they often convey is related to how to manage business finances. Many of them do not understand how to manage their business finances because their financial literacy is still low. This is in accordance with the results of the 2022 National Financial Literacy and Inclusion (SNLIK) survey conducted by the Financial Services Authority (OJK), the financial literacy index of MSME players in Indonesia in 2022 is 38.32 percent. After analyzing the data collected by distributing questionnaires to see financial literacy, especially MSME actors registered in the city of Bandung, it was found that the most influential financial literacy to improve MSME performance was financial knowledge. This knowledge is necessary to assist a person in making the right financial decisions and managing personal or business finances well.

With the increase in financial knowledge and after an analysis related to how the influence of financial literacy on MSME performance, partial results between financial knowledge, financial behavior and financial attitudes to MSME performance have a positive and significant effect as evidenced by multiple linear equations Y=3.276+0.355X1+0.272X2+ 0.294X3  with a significance level of <0.05. As well as for the results of the coefficient of determination test for literacy, the effect of financial literacy on financial performance was 78.3% and the rest was influenced by other variables.

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Keywords :

financial attitudes and performance of MSMEs., financial behaviour, Financial Knowledge

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