Title: Financial literacy on loans and budgets of micro, small, and medium enterprises

Authors: Marcellia Susan

Addresses: Faculty of Business, Department of Management, Maranatha Christian University, Bandung, West Java, 40164, Indonesia

Abstract: Indonesia had been facing issues regarding financial literacy in its society. Despite Micro, Small, and Medium Enterprises' (MSMEs) influences towards the economies of all countries, the lack of financial knowledge often results in challenges regarding operating, financing, and investing activities. The study was conducted to analyse financial literacy regarding borrowing and budgeting, which would determine the Access to Finance of MSMEs in West Java, Indonesia. To ensure the relationships between research variables, the data which concerns Financial Literacy and Access to Finance were tested and processed. This study contributed more insights to existing literature regarding the financial literacy of MSMEs, especially in Borrowing Financial Literacy and Budgeting Financial Literacy. The results of the research indicated that MSMEs were required to have Financial Literacy related to Loans and Budgets to obtain Access to Finance.

Keywords: borrowing financial literacy; budgeting financial literacy; access to finance; MSMEs; Micro, Small, and Medium Enterprises.

DOI: 10.1504/IJTGM.2023.132056

International Journal of Trade and Global Markets, 2023 Vol.17 No.3/4, pp.355 - 362

Received: 12 Feb 2021
Accepted: 11 Jun 2021
Published online: 07 Jul 2023 *

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