Empowering Financial and Digital Literacy to Build Resilience of MSMEs: Proposed Implementation in Bandung City

This study investigates the factors that influence financial and digital literacy among MSMEs in Bandung. Through semi-structured interviews with 5 key stakeholders, including banks, the MSMEs Agency, entrepreneurs, business incubators, and Financial Services Authority (OJK), the research revealed significant gaps in financial literacy, particularly in financial management and reporting, which hinder MSMEs’ access to credit and growth. Many entrepreneurs rely on simple calculations and struggle to create accurate financial reports. Digital literacy challenges, such as limited adoption of digital technology and uneven internet access, also hinder MSMEs participation in the digital economy. Key barriers include difficulty changing financial habits, limited mentorship, and limited budgets to support the program. The study emphasises the importance of financial education, noting that businesses with large lines of credit often lack comprehensive financial literacy. Based on these findings, targeted interventions are proposed, including comprehensive financial education program and digital skills training. The study emphasised the need for collaboration between the government and financial institutions to improve financial inclusion and literacy. The study proposes a Digital Creative Academy that aims to improve the digital marketing capabilities of MSMEs, particularly in video content creation and live streaming on e-commerce platforms. The program targets 750 micro-entrepreneurs in 30 sub-districts, addressing the need for digital skills in a growing market. This research contributes to understanding the challenges of MSMEs development in Indonesia and offers practical recommendations for policymakers and educators to strengthen MSMEs resilience in the digital age.

Authors

Publication Details

Journal
International Journal of Current Science Research and Review
Published
2024-10-04
DOI
https://doi.org/10.47191/ijcsrr/v7-i10-14
Citations
7
Primary Topic
Financial Literacy and Behavior
Type
article
Field-Weighted Citation Impact
6.62
Controls
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article

Empowering Financial and Digital Literacy to Build Resilience of MSMEs: Proposed Implementation in Bandung City

Achmad Fajar Hendarman, Ana Rizki
7 citations
International Journal of Current Science Research and Review
Financial Literacy and Behavior
6.62
article

Empowering Financial and Digital Literacy to Build Resilience of MSMEs: Proposed Implementation in Bandung City

Achmad Fajar Hendarman, Ana Rizki
article en
7 citations

Abstract

This study investigates the factors that influence financial and digital literacy among MSMEs in Bandung. Through semi-structured interviews with 5 key stakeholders, including banks, the MSMEs Agency, entrepreneurs, business incubators, and Financial Services Authority (OJK), the research revealed significant gaps in financial literacy, particularly in financial management and reporting, which hinder MSMEs’ access to credit and growth. Many entrepreneurs rely on simple calculations and struggle to create accurate financial reports. Digital literacy challenges, such as limited adoption of digital technology and uneven internet access, also hinder MSMEs participation in the digital economy. Key barriers include difficulty changing financial habits, limited mentorship, and limited budgets to support the program. The study emphasises the importance of financial education, noting that businesses with large lines of credit often lack comprehensive financial literacy. Based on these findings, targeted interventions are proposed, including comprehensive financial education program and digital skills training. The study emphasised the need for collaboration between the government and financial institutions to improve financial inclusion and literacy. The study proposes a Digital Creative Academy that aims to improve the digital marketing capabilities of MSMEs, particularly in video content creation and live streaming on e-commerce platforms. The program targets 750 micro-entrepreneurs in 30 sub-districts, addressing the need for digital skills in a growing market. This research contributes to understanding the challenges of MSMEs development in Indonesia and offers practical recommendations for policymakers and educators to strengthen MSMEs resilience in the digital age.

International Journal of Current Science Research and ReviewVol. 07(10)
Openalex Percentile: Top 3%
Financial Literacy and Behavior
6.62
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