THE EFFECT OF FINANCIAL LITERACY TO PERFOMANCE AND SUSTAINIBILITY OF CULLINARY MSME IN GREATER JAKARTA
Reny Fitriana Kaban (a*), Martina Safitry (b)
a) Faculty of Economics & Business, Institute Perbanas. Jakartata
* reny.fitriana[at]perbanas.ac.id
b) Faculty of Administration Science, IISMI STIAMI. Jakarta
Abstract
This research aims to analyze the effect of financial literacy to performance and sustainability of culinary MSME in Greater Jakarta Through this research, increase in knowledge regarding financial literacy for owners and managers of culinary MSME, so that they are able to make appropriate management and financial decisions for the success and sustainability of their business. In addition, it can be input to stakeholders about the importance of increasing financial literacy for business actors. The data collection method using a questionnaire consisted of demographic questions and structured research questions. Structured questions consist of two categories of questions. First, the type of quiz modified from the Basic Indonesian Financial Literacy Index (Definit, OJK and USAID) to determine financial literacy at MSME. The second modification of the EFQM Excellence Model is to measure performance based on the perception of how far the respondent reaches the indicators of business results. While business sustainability is modified from the Triple bottom line (TBL) reporting indicator, which measures the extent to which respondents maintain the sustainability of their business operations in terms of economic, environmental (ecological) and social aspects. The structural equation model by SmartPLS is used to analyze data. The result showed Financial literacy has a significant influence on the performance of culinary MSME in Greater Jakarta as well as the performance of MSME has a significant influence on the sustainability of culinary MSME in Greater Jakarta. However, financial literacy does not have a significant influence on the sustainability of culinary MSME in Greater Jakarta.
Keywords: Financial literacy, business performance, sustainability, culinary MSME
Topic: Management, Enterpreneurship, and Leadership