Financial Literacy Has an Impact on the Financial Management of Micro, Small and Medium Enterprises (Msmes)

Zakiah Z, Tambusay BW, Muda I, Soemitra A and Sugianto S

Published on: 2024-01-10

Abstract

Financial literacy means knowing about money and how to manage it. This includes understanding the basic skills of finance, borrowing money, investing, and having insurance. This study wants to find out how basic financial skills affect small businesses in Medan City in managing their money. The respondents used in this study were 30 small business owners (MSMEs) who sell culinary delights to answer questions about their financial management. In this study a random method was used to select who took part in the survey and used statistics and regression analysis to analyze the results. The study found that basic financial skills, loans and investment all have a positive and significant impact on financial management and the insurance variable also has a positive effect on financial management.