The Effect of Financial Inclusion and Fintech Adoption on MSME Sustainability Mediated by Financial Literacy and Self-Efficacy

Introduction: This study aims to determine the results of the mediation of financial literacy and self-efficacy. It seeks to empirically evaluate the effect of financial inclusion and fintech adoption on financial sustainability in micro enterprises in Agam Regency. Objectives: This study's population consists of micro-businesses registered in the e-UMKM database of Agam Regency, specifically those in the processed food industry, embroidery and embroidery industry, and the agriculture and fisheries sectors. Methods: This study employed descriptive statistics for data collection and inferential statistics with SEM-PLS for variable influence analysis. According to the findings, financial literacy is a full mediator of the association between financial inclusion and sustainability. A partial mediator of the relationship between sustainability is financial self-efficacy. Results and Conclusions: The study found that MSMEs in Agam Regency were better able to weather financial storms after adopting fintech. It also found that financial self-efficacy and literacy played a mediating role in this relationship.