FINANCIAL TRANSFORMATION OF MICRO ENTERPRISES: THE IMPACT OF FINANCIAL LITERACY AND DIGITAL PAYMENT

This study aims to examine the influence of financial literacy and payment gateway utilization on the economic performance of micro-enterprises in Banyumas. A questionnaire is a tool for data collection. The target population for this study comprised all micro-enterprises registered with the Banyumas Regency Cooperatives and SMEs Service, totaling 89,477 distinct entities. Snowball sampling is a sampling technique wherein each participant refers more persons that satisfy the study sample criteria. This strategy was employed to pick a sample that accurately represents the population. The sample size for this study was established at one hundred respondents using the Slovin algorithm to ascertain the appropriate sample size. Partial Least Squares (PLS) served as the analytical instrument for data evaluation. This research indicates that the financial performance of micro-enterprises is affected by financial literacy and payment gateways.