IMPLICATIONS OF FINANCIAL LITERACY ON ENTREPRENEURIAL PERFORMANCE AT THE SCALE OF MSMEs

Abstract

Micro Small Enterprises and Medium Enterprises (MSMEs) have a role important in pushing the economy of some countries including Indonesia. Currently, there are more MSMEs in Indonesia 65.5 million businesses spread across various fields area. This matters because many opportunities for Indonesian society to develop his own business. To operate a business need knowledge about the business you are undertaking and financial literacy. Financial literacy of become indicator in increasing MSME performance, a lot there are not enough MSME actors in Indonesia who understand about literacy of finance however they have good performance. Because of that, the is a phenomenon that will be discussed in writing this paper. The objective of this paper is to know indicators that can influence MSME performance and to get definite answers by gathering evidence from researcher previous. The method used in writing is a systematic literature review, which method is used for searching, judging, and synthesizing articles beforehand to find it systematic answer. Results from this paper literacy finance has a positive influence on MSME performance, however, a lot of other possible indicators support the enhancement performance of MSMEs such as financial inclusion, technology used in running a business, experience possessed by business actors, education, age and gender of business actors, apart from that the financial capital owned by MSME actors can influence their business performance.