Articles

Analysis of Financial Indicator Literacy Determinants on The Performance of Bandung City SMEs

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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.

The Influence of Financial Literacy, Risk Tolerance, and Demographic Factors on Investment Decision among Generation Z and Millennial in Greater Jakarta and Greater Bandung

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Financial services and products are getting more complex and difficult to comprehend for many consumers. Consumers with limited financial literacy may struggle to make wise decisions about their financial (investment) decisions. Financial literacy capital market in Indonesia still in lowest level. In addition, low financial literacy will increase the number of illegal investments. Throughout 2022, the Indonesian police have handled 28 illegal investment cases with a total loss of 31.4 trillion to the community. The victim also came from varied backgrounds, men and women, young and old, from those who did not go to school until undergraduates, from low-income to high. The purpose of this study is to determine the relationship between financial literacy, risk tolerance, and demographic factors toward investment decisions among Generation Z and millennials in Greater Jakarta and Greater Bandung. Variable financial literacy used in this study includes financial knowledge, behavior, and attitude. An online questionnaire was conducted and there were 216 respondents who participated in this research. A quantitative approach was used to analyze the data collected using multiple linear regression through SPSS. The study found that financial knowledge, financial behavior, financial attitude, age, and occupation have a significant effect on investment decisions. Meanwhile, risk tolerance, gender, and income do not have a significant effect on investment decision.