Business Model Canvas and Competitiveness on Financial Performance of MSMEs

Objective: This study reveals the effect of using the Business Model Canvas (BMC) and the competitiveness on the financial performance of MSMEs. Method: We used purposive sampling to collect data from MSMEs located in Kudus Regency, Central Java province, Indonesia. Central Java is one of the most populous provinces in Indonesia that has thousands of MSME activities. Consideration for sample selection in this study was the age of MSMEs is more than 2 years and MSMEs engaged in services, goods, and production. The number of valid samples was 410 MSMEs. Data collection was carried out by distributing questionnaires to respondents. Result: The result shows that the Business Model Canvas and competitiveness have a significant impact on the financial performance. This research result encourages MSME owners to increase their awareness of the essence of applying strategy and increasing competitiveness in business. Research Implications: This research suggests that the focus of government is to increase public knowledge about business models and increase the competitiveness of MSMEs.