THE INFLUENCE OF CAPITAL, FINANCIAL INCLUSION, AND FINANCIAL LITERACY ON THE FINANCIAL PERFORMANCE OF MSMEs (MICRO, SMALL AND MEDIUM ENTERPRISES) IN GIANYAR REGENCY

Abstrak

MSMEs have a crucial role in the development and growth of the national economy as well as drive grassroots economic activity in Indonesia. One of the key aspects in the operation of MSMEs is financial management. This research aims to determine the influence of capital, financial inclusion, and financial literacy on the financial performance of MSMEs in Gianyar Regency. The research employs a quantitative approach with an associative design. The population includes all owners or managers of MSMEs in Gianyar Regency. A sample of 48 respondents was selected using accidental sampling, wherein respondents are owners or managers of MSMEs in Gianyar Regency at the time and place where the researcher collected data. The data collection method in this research is the distribution of questionnaires. The analysis techniques used include multiple linear regression analysis, multiple correlation analysis, determination analysis, and hypothesis testing (t-test). The results of this research indicate that 59.1% of the variation in financial performance of MSMEs in Gianyar Regency is influenced by capital, financial inclusion, and financial literacy. Based on the hypothesis test, it is found that capital, financial literacy, and financial inclusion have a positive and significant impact on the financial performance of MSMEs in Gianyar Regency. Suggestions for future research include expanding this study by incorporating other factors such as debt management, risk management, and investments, which theoretically also influence the financial performance of MSMEs in line with the occurring phenomena.