Factors Determining Successful Financial Management in MSMEs
Keywords:
Financial Management, Financial Literacy, Access to Financing, Success of MSMEsAbstract
This research aims to examine and analyze the influence of financial literacy, access to financing, use of information technology, and managerial competence on the success of financial management of MSMEs in South Sulawesi. This research uses quantitative methods with a survey approach, involving 200 MSMEs as samples. Data was collected through a questionnaire which was then analyzed using AMOS statistical software. The research results show that: (1) Financial literacy has a significant influence on MSME financial management, namely confirming that a good understanding of financial principles is very important to improve the quality of MSME financial management. (2) Access to financing and the use of information technology have also been proven to have a significant impact, namely being able to help MSMEs meet working capital and investment needs and then increasing operational efficiency and accuracy of financial reports. (3) The use of information technology supports financial management by increasing data accuracy and financial process efficiency, which can contribute significantly to the success of financial management. Good management requires adequate managerial skills to plan, manage risks and evaluate financial performance.
Based on the research results, it is recommended that MSMEs improve their financial literacy through training and education. In addition, expanding access to formal financial services and the adoption of information technology must be encouraged to support better financial management. These findings provide valuable insights for policy makers and stakeholders in designing more effective support programs, to improve the success of MSME financial management in South Sulawesi.
References
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, Inequality and the Poor. Journal of Economic Growth, 12(1), 27-49.
Beck, T., Demirgüç-Kunt, A., & Maksimovic, V. (2005). Financial and Legal Constraints to Firm Growth: Does Firm Size Matter? Journal of Finance, 60(1), 137-177.
Beck, T., Demirgüç-Kunt, A., & Martinez Peria, M. S. (2008). Bank Financing for Small and Medium Enterprises: Lessons from Argentina. Journal of Financial Services Research, 34(1), 1-17.
Brealey, R. A., Myers, S. C., & Allen, F. (2019). Principles of Corporate Finance (13th ed.). McGraw-Hill Education.
Brigham, E. F., & Ehrhardt, M. C. (2017). Financial Management: Theory & Practice. 15th Edition. Cengage Learning.
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning.
Bruhn, M., & Zia, B. (2011). Stimulating Managerial Capital in Emerging Markets: The Impact of Business Training for Young Entrepreneurs. The World Bank.
Dalle, Daniel Sulekale. (2003). “Pemberdayaan Masyarakat Miskin di Era Otonomi daerah”. Jurnal Ekonomi Rakyat ¬.II No. 2.
Daniri, Mas Achmad. (2005). Good Corporate Governance: Konsep dan Penerapannya dalam Konteks Indonesia. Jakarta: PT. Ray Indonesia.
Deakins, S. (2006). “Competition And Knowledge In Javanese Rural Business”. Singapore Journal of Tropical Geography, 23(1).
DeLone, W. H., & McLean, E. R. (1992). Information Systems Success: The Quest for the Dependent Variable. Information Systems Research, 3(1), 60-95.
Endi Sarwoko. (2008). “Kajian Faktor-Faktor Penentu Keberhasilan Small Business”. Journal Modernisasi Volume 4, Nomor 3, Oktober 2008: 227.
Gine, X., & Kastella, J. (2010). The Impact of Access to Credit on Small Business Performance: Evidence from Microfinance Programs in Developing Countries. Economic Development and Cultural Change, 59(3), 457-487.
Gitman, L. J., & Zutter, C. J. (2015). Principles of Managerial Finance (14th ed.). Pearson.
Hartina,Goso-Goso, Muh. Halim Pallatte. 2023. Analisis Dampak Literasi Keuangan dan Pengelolaan Keuangan Terhadap Kinerja Keuangan UMKM. Journal of Management & Business ISSN : 2598-831X (Print) and ISSN : 2598-8301. Volume 6 Issue 1 Pages 644 - 651
Higgins, R. C. (2012). Analysis for Financial Management. 10th Edition. McGraw-Hill Education.
Laudon, K. C., & Laudon, J. P. (2018). Management Information Systems: Managing the Digital Firm (15th ed.). Pearson.
Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44.
McLeod, R., & Schell, G. P. (2007). Management Information Systems (10th ed.). Pearson/Prentice Hall.
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. The American Economic Review, 48(3), 261-297.
McKenzie, D. J., & Woodruff, C. (2014). What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World? World Bank Research Observer, 29(1), 48-82.
OECD (2015). New Approaches to SME and Entrepreneurship Financing: Broadening the Range of Instruments. OECD Publishing.
Patra Swierczek, F. W, & Ha, T. T. (2007). “Entrepreneurial Orientation Uncertainty Avoidance And Firm Performance: An Analysis Of ai And Vietnamese Smes”. International Journal of Entrepreneurship and Innovation, 4(1): 46-58.
Premkumar, G., & Roberts, M. (1999). Adoption of New Information Technologies in Rural Small Businesses. Journal of Small Business Management, 37(4), 28-42.
Rahmawati, D. (2021). Pengaruh Penggunaan Teknologi Informasi terhadap Manajemen Keuangan pada UMKM di Indonesia. Jurnal Akuntansi dan Keuangan, 18(3), 145-156.
Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business.
Romney, M. B., & Steinbart, P. J. (2018). Accounting Information Systems (14th ed.). Pearson.
Ross, S. A., Westerfield, R., & Jaffe, J. (2018). Corporate Finance (12th ed.). McGraw-Hill Education.
Ross, S. A., Westerfield, R., & Jordan, B. D. (2016). Essentials of Corporate Finance (9th ed.). McGraw-Hill Education.
Sharma, A., & Pandey, N. (2016). Financial Literacy and its Impact on Small Business Performance. Journal of Small Business and Enterprise Development, 23(2), 572-588.
Stair, R. M., & Reynolds, G. W. (2018). Fundamentals of Information Systems (9th ed.). Cengage Learning.
Suliyanto. (2010). Studi Kelayakan Bisnis Pendekatan Praktis. Yogjakarta: CV Andi Offset.
Sumahamijaya, Suparman. (1981). Membina Sikap Mental Wiraswata. Jakarta: Gunung Jati. Suryana. (2003). Kewirausahaan: Pedoman Praktis, Kiat dan Proses Menuju Sukses. Jakarta: PT. Salemba Empat
Supardi. (2005). Metodologi Penelitian Ekonomi Dan Bisnis. Yogjakarta: UII Press.
Susanti, R., Pratama, A., & Nurhidayah, S. (2019). Pentingnya Literasi Keuangan bagi Pengelolaan Keuangan pada UMKM. Jurnal Ekonomi dan Bisnis, 12(2), 102-113.
Taufik, M., Latifah, A., & Karim, F. (2022). Dukungan Pemerintah dan Lembaga Non-Pemerintah terhadap Manajemen Keuangan UMKM di Sulawesi Selatan. Jurnal Kebijakan Ekonomi, 14(1), 60-72.
Titman, S., & Martin, J. D. (2016). Valuation: The Art and Science of Corporate Investment Decisions (3rd ed.). Pearson.
Van Horne, J. C., & Wachowicz, J. M. (2008). Fundamentals of Financial Management (13th ed.). Pearson Education Limited.
Wibowo, S., & Handayani, T. (2020). Akses Layanan Keuangan Formal dan Pengaruhnya terhadap Manajemen Keuangan UMKM. Jurnal Manajemen Keuangan, 15(4), 220-235.
Wulansari, N. A., & Anwar, M. (2022). Pengaruh Literasi Keuangandan Pengelolaan Keuangan Usaha terhadap Kinerja Keuangan pada UMKM Sepatu dan sandal di Eks Lokalisasi Dolly. Syntex Literate : Jurnal Ilmiah Indonesia, 7(3), 1207–1215. Yah
