Analysis of Financial Literacy and Sustainable Financial Literacy Levels in Surakarta’s MSMEs

Wahyu Mei Susilowati, Muhammad Sabandi

Abstract


The important factors in business management, especially for MSMEs, are financial literacy and sustainable financial literacy. However, research in this field in developing countries is still lacking. This study fills that gap by analyzing the financial literacy and sustainable financial literacy levels among MSME entrepreneurs in Surakarta. A descriptive quantitative approach through the survey method was chosen in this study. The sample in this study consists of 180 MSME entrepreneurs who are still actively operating in Surakarta, selected using non-probability sampling techniques. The results indicate that both the overall level of financial literacy and sustainable financial literacy remain relatively low. Financial literacy and sustainable financial literacy levels can be influenced by gender, age, and education. However, the financial literacy level among MSME entrepreneurs in Surakarta is higher than their sustainable financial literacy level. These findings have important implications for MSME entrepreneurs, the Surakarta government, universities as MSME partners, and the government for the development of MSMEs in realizing sustainable businesses.


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