Empowering MSMEs Through Financial Literacy: Exploring Strategies for Sustainable Growth

This study examines strategies to increase financial literacy to encourage the growth of MSME financial performance in Semarang Regency. Using a qualitative approach, the study involved 120 MSMEs with data collection through in-depth interviews, observations, and focus group discussions. The results of the study show that the condition of financial literacy is still low, with 65.3% of MSMEs not doing regular financial records, 77.5% mixing business-personal finance, and 81.7% lacking understanding of financial products. Structured mentoring programs with a holistic approach have proven to be effective in increasing the financial management capacity of MSMEs, marked by an increase in turnover (35.2%), operational efficiency (24.7%), and access to capital (19.8%). Multi-stakeholder collaboration and digital technology integration are key factors in the success of the program. The research results in a financial literacy development framework that can be adapted for implementation in other regions.

Authors

Publication Details

Journal
Management Dynamics
Published
2025-01-28
DOI
https://doi.org/10.70062/managementdynamics.v2i2.87
Primary Topic
Microfinance and Financial Inclusion
Type
article
Field-Weighted Citation Impact
0.00
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article

Empowering MSMEs Through Financial Literacy: Exploring Strategies for Sustainable Growth

Dyah Palupiningtyas, Alfaira Alfaira
1 links
Management Dynamics
Microfinance and Financial Inclusion
article

Empowering MSMEs Through Financial Literacy: Exploring Strategies for Sustainable Growth

Dyah Palupiningtyas, Alfaira Alfaira
article en

Abstract

This study examines strategies to increase financial literacy to encourage the growth of MSME financial performance in Semarang Regency. Using a qualitative approach, the study involved 120 MSMEs with data collection through in-depth interviews, observations, and focus group discussions. The results of the study show that the condition of financial literacy is still low, with 65.3% of MSMEs not doing regular financial records, 77.5% mixing business-personal finance, and 81.7% lacking understanding of financial products. Structured mentoring programs with a holistic approach have proven to be effective in increasing the financial management capacity of MSMEs, marked by an increase in turnover (35.2%), operational efficiency (24.7%), and access to capital (19.8%). Multi-stakeholder collaboration and digital technology integration are key factors in the success of the program. The research results in a financial literacy development framework that can be adapted for implementation in other regions.

Management DynamicsVol. 2(2)
Openalex Percentile: Top 88%
Microfinance and Financial Inclusion
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