SME Managers and Financial Literacy

2017 ◽  
Vol 18 (3) ◽  
pp. 559-576 ◽  
Author(s):  
Anthony Abiodun Eniola ◽  
Harry Entebang
Keyword(s):  
Leadership Development ◽  
Financial Literacy ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Panel Data Analysis ◽  
Business Owners ◽  
Financial Knowledge ◽  
Business Owner ◽  
Southwest Nigeria ◽  
Medium Enterprises

The aim of this study is to examine the level of small and medium enterprises (SMEs) business owners–managers’ financial literacy and its impact on firm’s performance. The article applied a random sample and structural equation modelling (SEM) approaches in assessing the influence of SME business owners–managers’ level of financial literacy within the three states in the southwest Nigeria. The findings show the complete effect of business owner–manager’s financial knowledge, financial awareness and financial attitude in converting financial literacy to increase in firm performance. Also, they confirm that financial knowledge and awareness of SME business owners–managers are obviously not a prerequisite for the performance of SMEs, but entrepreneur characteristics in decision-making and relationship to financial attitude have a comparison with financial literacy. The research limitation evolves from cross section information observation that solely covers the southwestern part of the country. Additionally, inspired to meet the analysis gap is panel data analysis. Training courses through strategic orientation on the attitudinal perception of SME business owner–manager and basic business management skills, capacity-building aspect, leadership development as well as networking via relationship marketing and management on financial literacy may have significant effect on SMEs’ performance and growth for the managers in general in Nigeria. The article is one of the first to examine the level of financial literacy of SME business owners–managers in Nigeria. The article therefore sets an important benchmark for further research in this area.

PENGARUH LITERASI KEUANGAN TERHADAP PROFITABILITAS USAHA MIKRO KECIL DAN MENENGAH DI KOTA TANGERANG

2020 ◽  
Vol 12 (2) ◽  
pp. 270-293
Author(s):  
Eko Agus Prasetyo Endarto ◽  
Aloysius Alfando Tirtana
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Positive Influence ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Statistical Tool ◽  
Equation Modelling ◽  
Medium Enterprises

Financial literacy is important to improve personal and business financial management skill, especially for small and medium enterprises. Several previous studies have shown an influence between financial literacy and their profits. This research wants to examine whether there is an influence between financial literacy which consists of financial knowledge, behavior and attitude towards SME profits in Tangerang City. Structural Equation Modelling is used as a statistical tool to prove the specified hypothesis. By processing the data, it was found that there was a positive influence between financial literacy and profit.   Keywords: Financial Literacy, Financial Knowledge, Financial Behavior, Financial Attitude, Small Medium Enteprise

scholarly journals SME Managers and Financial Literacy; Does Financial Literacy Really Matter?

2018 ◽  
Vol 8 (3) ◽  
pp. 353
Author(s):  
Shamim Akhtar ◽  
Yanping Liu
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Service Providers ◽  
Business Owners ◽  
Financial Knowledge ◽  
Equation Modeling ◽  
Financial Awareness ◽  
Performance Results ◽  
The Impact ◽  
Firm Owners

The purpose of this study is to examine the level of small and medium (SMEs) business owners-managers’ financial literacy and its effect on the firm’s performance. The study applied random sample and structural equation modeling approaches in measuring the impact of SME firm owners-managers’ level of financial literacy in the context of Pakistan. The findings reveal the complete influence of firm owners- manager’s financial attitude, financial knowledge and financial awareness in adapting financial literacy to upsurge in firm performance. Results indicate that financial awareness and financial knowledge of SME managers are evidently not a precondition to SMEs performance, yet entrepreneur tactics in making decisions and association to financial attitude have a contrast with financial literacy. Findings would be valuable for the SME owners, investors and service providers.

scholarly journals Micro, small, and medium enterprises (MSMEs): The emerging market analysis

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1521-1528
Author(s):  
Fatimah Fatimah ◽  
Abid Djazuli ◽  
Fitriya Fauzi
Keyword(s):  
Environmental Conditions ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Research Impact ◽  
Business Owners ◽  
Factors Affecting ◽  
Use Of Technology ◽  
The Government ◽  
Medium Enterprises

This study aims to analyse the factors affecting the Micro, Small, and Medium Enterprises in the province of South Sumatra, Indonesia. Data of 100 MSMEs were collected through questionnaires in the 15 regencies/cities in South Sumatra. The statistical analysis used was Structural Equation Modelling (SEM) processed through AMOS. The results evidence that the external factors of capital support, business partners, and infrastructure directly have no direct effects but indirectly affect the performance of MSMEs in South Sumatra. Also, the availability of resources and environmental conditions; and the capability of business owners and employees indirectly affect the performance of MSMEs in South Sumatra. Lastly, the use of technology and research impact the performance of MSMEs in South Sumatra directly and indirectly through the availability of resources and environmental conditions and business owners and employees' capability. Theoretically, this study expands the MSMEs literature by discussing factors (i.e., external and internal) affecting MSMEs' performance holistically. Practically, this study is beneficial for the government, practitioners, and policymakers.

scholarly journals THE EFFECTS OF FINANCIAL KNOWLEDGE, SOCIALISATION, ATTITUDE AND SKILL ON MALAYSIAN SMES’ PERFORMANCE

2020 ◽  
Vol 8 ◽  
pp. 1-11
Author(s):  
Dzuljastri Abdul Razak ◽  
Hanudin Amin
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Financial Knowledge ◽  
Contributing Factors ◽  
Economy Growth ◽  
Long Run ◽  
Literacy Theory ◽  
Medium Enterprises ◽  
Survey Approach

Though considered trivial, small and medium enterprises (SMEs) were one of the contributing factors for Malaysia economy growth. Besides providing employment, SMEs also provide an improved integration to ensure other businesses survive in the long run. Thus, the present study examined the contributing factors to explain SMEs' performance, be it high or negative. Drawing upon the financial literacy theory, this study proposed a model of factors to examine the effects of financial knowledge, socialisation, attitude and skill on the performance of SMEs industry in Malaysia. The model was examined using owners of the SMEs drawn from 413 respondents collected in West Malaysia. Our results suggested that the said indicators were instrumental in determining the performance, and attitude was also essential as a mediator as discovered in our PLS analyses. In practice, however, this study jacked up a new understanding of why SMEs' performance is of importance, and the survey approach in measuring the performance is nothing but important. Our findings provide an insight for owners of SMEs to manage their businesses, where financial knowledge, financial socialisation, financial attitude and financial skill are brought into play.

scholarly journals Women entrepreneurship in the developing country: The effects of financial and digital literacy on SMEs’ growth

2020 ◽  
Vol 9 (4) ◽  
pp. 106-115
Author(s):  
Fitriya Fauzi ◽  
Darius Antoni ◽  
Emi Suwarni
Keyword(s):  
Financial Literacy ◽  
Digital Literacy ◽  
Latent Variables ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Market Competition ◽  
Traditional Markets ◽  
Long Run ◽  
Digital Knowledge ◽  
Medium Enterprises

This study aims to investigate the effects of financial and digital literacy on growth of small and medium enterprises (SMEs) managed by women in Indonesia. Data were collected through questionnaires of women entrepreneurs in Palembang, Indonesia. For the purpose of comparison, data of men entrepreneurs were also collected. The variables employed are latent variables such as financial literacy, digital literacy, SME’s growth which are derived from a series of questions to indicate each variable. A total of 240 women and 240 men were analyzed using structural equation modelling (SEM). The results reveal that both financial and digital literacy had positive and significant effects on return on assets. On the other hand, only digital literacy had positive and significant effects on growth. The findings further evidence that women had a lower level of digital knowledge compared to men. Furthermore, the results show that in the short term, financial literacy and digital literacy are important to understand and implement. But in the long run, digital literacy plays an important role because it impacts business growth. This is in line with an increasingly fierce market competition where the market is also shifting from traditional markets to modern markets. Not only the market, but consumers are also shifting from traditional consumers to digital consumers.

scholarly journals FINANCIAL LITERACY: AN ESSENTIAL IN SMALL MEDIUM ENTREPRISES (SMEs) PERFORMANCE

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Novita Ratna Satiti
Keyword(s):  
Financial Literacy ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Business Owner ◽  
Data Source ◽  
Quantitative Design ◽  
Medium Enterprises

This study aims to examining the effect of financial literacy on the performance of Small and Medium Enterprises (SMEs) in Malang. This explanatory study was conducted in Sukun District, Malang City. The population was SMEs that located in Sukun District, Malang City which were selected using proportionate stratified random sampling with the total number of 220 samples. The study used descriptive quantitative design with primary data as the data source. The data was analyzed using Smart Partial Least Square (PLS) 3.3 Version with hypothesis tested using Bootstrap. The results of this study indicate that: 1) the financial literacy of the SMEs in Sukun District, Malang City was at a good literacy level which is Sufficient Literate; 2) the Small and Medium Enterprises in Sukun District has a good level of business performance; and Analysis of Smart PLS shows that financial literacy has a positive and significant effect on the performance of Small and Medium Enterprises in Sukun District, Malang. Therefore, financial literacy of the business owner has an important role in business performance. financial literacy can help business actors to gain adequate financial knowledge and capabilities in preparing their business financial strategies and improving their business performance

scholarly journals Optimalisasi Financial Teknologi (Fintech) terhadap Peningkatan Literasi dan Inklusi Keuangan Usaha Menengah Purwokerto

Performance ◽  
2020 ◽  
Vol 27 (1) ◽  
pp. 12
Author(s):  
Cut Misni Mulasiwi ◽  
Karina Odia Julialevi
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Structural Equation ◽  
Positive Influence ◽  
Business Owners ◽  
Sem Analysis ◽  
Financial Inclusion ◽  
Equation Modeling ◽  
Microsoft Excel ◽  
Medium Enterprises

The purpose of this study is to explain the effect of fintech-based financial services on financial literacy and financial inclusion on Medium Enterprises in Purwokerto. To test the empirical model, Structural Equation Modeling (SEM) analysis was used. Other analysis tools used included AMOS 21.0, SPSS 16.0 and Microsoft Excel 2010. The number of samples in this study was 108 micro business owners. The results of this study indicate that fintech-based financial services have a positive influence on financial literacy and micro-business financial inclusion in Purwokerto.

Pengaruh Pengalaman Usaha Dan Penggunaan Informasi Akuntansi Pelaku Usaha Mikro Kecil Menengah Terhadap Keberhasilan Usaha

2019 ◽  
Vol 6 (1) ◽  
pp. 27-39
Author(s):  
Khoirunnisa Cahya Firdarini
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Control Variable ◽  
Accounting Information ◽  
Total Sample ◽  
Creative Industries ◽  
Business Success ◽  
Statistical Tool ◽  
Business Experience ◽  
Medium Enterprises

Accounting information has an important role to achieve business success, as well as for small businesses.This research examines the effect of business experience and accounting information system used toward business success with age of business as control variable. The population of this research are small and medium enterprises (SMEs) in creative industries sector operated in Yogyakarta district. Based on purposive sampling method, total sample of this research is 200 SMEs. Statistical tool utilized to test the hypothesis in this study is path analysis using structural equation modelling (SEM). The test result shows that business experience and accounting information have positive and significant effect to the success of SMEs.

Effect of Innovation Strategies on Sme Performance Mediated Competitive Advantages

2019 ◽  
Vol 118 (2) ◽  
pp. 94-97
Author(s):  
Mohammad Mabrur Taufik ◽  
DewiPuspaningtyas Faeni
Keyword(s):  
Competitive Advantage ◽  
Human Resource Development ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Innovation Strategy ◽  
Product Introduction ◽  
Research Population ◽  
Innovation Strategies ◽  
Medium Enterprises

Small and Medium Enterprises and Indonesian Cooperatives (SMESCO) are strategies in promoting and introducing Indonesia's superior products to the international community. Through SMESCO, SME owners can work together on standardization of SME products, SME quality standardization and at the same time a forum for fostering SMEs to market their products, through human resource development programs including seminars, training, workshops and product introduction through online shops and mentoring programs. The research aims to prove and analyse the influence of: innovation strategies on the performance of SMEs in SMESCO Indonesia directly or through competitive advantage; innovation strategy towards competitive advantage; competitive advantage towards the performance of SMEs at SMESCO Indonesia. The research population is all SME companies that partner with SMESCO Indonesia. Sampling is done by probability sampling with a simple random sampling method. Data analysis using Structural Equation Modelling-Partial Least Squares, a sample of 147 small and medium business owners at SMESCO Indonesia. The results of the study prove: (1) The innovation strategy does not directly have a significant effect on the increasing performance of SME companies in SMESCO Indonesia but has a significant effect through competitive advantage; (2) Competitive advantage has a significanteffect on the increasing performance of SMEs in Indonesia.

The Impact of Financial Literacy on Financial Preparedness for Retirement in the Small and Medium Enterprises Sector in Uganda

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Moderating Effect ◽  
Primary Data ◽  
Retirement Preparedness ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Effect Of Age

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

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