The Influence of Financial Literacy and Financial Technology on The Development of Micro, Small, and Medium Enterprises (MSMEs) in Menten Atas Village

Abstract

The purpose of this study is to determine the effect of the level of financial literacy and Financial Technology has a significant effect on the development of MSMEs. The research conducted is a type of quantitative research using non-probability sampling purposive sampling. The data used are primary data with data collection methods in the form of questionnaires. The study population is 145 MSMEs in the Menteng Atas Village who have a business license, and are registered with the Investment and One
Stop Services Office (DPMPTSP). This study used survey data collection techniques using questionnaires on respondents directly and indirectly. The data collection instrument test in this study used the data analysis method in this study using the SEM-PLS Structural Equation Modeling - Partial Least Square (PLS) method. The results showed that the Financial Literacy and Financial Technology variables had a positive and significant influence on the development of MSMEs. Demonstrating the important role of financial literacy and financial technology in enhancing the development of MSMEs, so that MSME actors need to carry out financial literacy education and technology training to develop their businesses.