The Determinants of Micro, Small and Medium Enterpeises (Msmes) Financial Performance: A Literature Review (original) (raw)
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Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020), 2021
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The study analyzed the financial performance of selected micro, small, and medium enterprises using secondary data from financial statements for the past three years. Results showed the enterprises performed favorably in liquidity, activity and leverage but suffered from a low-level profitability. Using correlation analysis, the results show a significant linear relationship between liquidity and activity, liquidity and leverage, and activity and leverage. However, each of these measures has no significant relationship with profitability. Using t-tests, the results show no significant difference in the liquidity, profitability, and inventory turnover of the enterprises when grouped according to organizational form, business type, and asset size. However, a significant difference exists in receivable turnover, asset turnover, and debt ratios. The study recommends the MSMEs should revisit their strategies for improving profitability and use financial performance information in making critical decisions. Firms should connect financial performance to the larger external environment of the business so they will continue to play an important role in the growth of the economy.
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This study aims to examining the effect of financial literacy on the performance of Small and Medium Enterprises (SMEs) in Malang. This explanatory study was conducted in Sukun District, Malang City. The population was SMEs that located in Sukun District, Malang City which were selected using proportionate stratified random sampling with the total number of 220 samples. The study used descriptive quantitative design with primary data as the data source. The data was analyzed using Smart Partial Least Square (PLS) 3.3 Version with hypothesis tested using Bootstrap. The results of this study indicate that: 1) the financial literacy of the SMEs in Sukun District, Malang City was at a good literacy level which is Sufficient Literate; 2) the Small and Medium Enterprises in Sukun District has a good level of business performance; and Analysis of Smart PLS shows that financial literacy has a positive and significant effect on the performance of Small and Medium Enterprises in Sukun Distric...
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Microenterprise sector plays a pivotal role in driving economic growth in developing nations. This research aims to devise a financial literacy strategy that augments the performance of microenterprise customers of Indonesia's Shariah Microbank in DKI Jakarta. Improving the performance of micro businesses is not only the responsibility of Bank Syariah Indonesia but also the responsibility of many parties, namely the role of the government through the establishment of KNEKS and KDEKS which aim to increase sharia financial literacy and need to be supported by associations both the Sharia Economic Society (MES) and universities who are concerned with increasing sharia financial literacy which leads to improving the performance of micro businesses. This is achieved by investigating the determinants of microenterprise performance, focusing on the financial literacy of the customers availing microfinance services from the said bank. This study adopts a quantitative approach and employs Structural Equation Modeling (SEM) to analyze data, with financial access as mediating variables. The results are further evaluated through Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis-a robust research technique for identifying obstacles and refining effective strategies. The study comprises a sample of 500 microenterprise operators who are clients of the Shariah Microbank in DKI Jakarta. The analysis reveals the following insights: (1) Financial literacy exhibits a positive and moderate influence on the microenterprise performance of Shariah Microbank customers in DKI Jakarta. (2) Financial access demonstrates a positive and moderate impact on microenterprise performance. (3) Financial literacy exhibits a positive and moderate effect on financial access. (4) financial literacy has a positive and moderate effect on financial risk attitudes, (5) financial risk attitudes have positive an insignificant effect on micro business performance, (6) financial literacy through financial access as a mediating variable has a positive and moderate effect on micro business performance, (7) financial literacy through financial risk attitudes variables have positive an insignificant affect the performance of micro business enterprises. This encompasses strategic programs including: (1) Financial proficiency through collaborative Shariah microfinance training within the Islamic Ecosystem and expansion and optimization of the BSI Microentrepreneur Center; (2) Financial attitude and behavior enhancement via workshops on Shariah microfinancial planning and mentorship by BSI personnel for microenterprise operators; (3) Financial access enhancement through intensified digitalization of Shariah microfinancial services and integration of bundled products and services (e.g., incorporating licensing and halal standardization).
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This study was conducted to determine the relationship and influence of financial inclusion on the business performance of micro and small enterprises (MSEs). The level of financial inclusion was investigated through access, usage, quality, and welfare. Business performance with its dimensions of sales growth, capital growth, labor increase, market growth and profit growth were also examined. Consequently, the relationship between financial inclusion and business performance, and the influence of financial inclusion on the business performance of MSEs were studied. Descriptive-correlational design was used to explore and describe connections between financial inclusion and business performance. Data were collected from the fifty (50) owners and managers of MSEs using stratified random sampling technique. Upon careful analysis of the results, it became evident that micro and small enterprises demonstrate a very high level of financial inclusion, coupled also with high results of their business performance. Further, it is found that there exists a statistically significant and positive relationship between financial inclusion and business performance. Moreover, it was revealed that financial inclusion significantly influences the business performance of MSEs. These findings underscore the critical importance of enhancing the financial inclusion initiatives for MSEs as it directly impacts and improves their overall business performance.
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