Financial Literacy and Symbolic Capital in Improving the Performance of MSMEs
DOI:
https://doi.org/10.18502/kss.v10i17.19312Keywords:
financial literacy, symbolic capital, MSME performanceAbstract
Semarang city is home to 84 MSMEs under the guidance of PTPN IX. These small-scale businesses face significant challenges related to financial literacy and performance, including limited understanding of financial management, investment strategies, debt management, long-term financial planning, and the ability to leverage financial opportunities. This investigates the impact of financial literacy on MSME performance, with symbolic capital serving as a mediating variable. A quantitative approach was employed, using both primary and secondary data collected through questionnaires distributed to all 84 MSMEs supported by PTPN IX located in Semarang. A saturated sampling method was used. Data were analyzed using SEM-PLS, involving two stages: (1) measurement model testing to assess the validity and reliability of construct indicators, and (2) structural model testing to examine relationships among constructs using PLS t-test. The results indicate that symbolic capital fully mediates the relationship between financial literacy and MSME performance, suggesting that financial literacy indirectly influences performance through symbolic capital. These findings highlight the importance of enhancing financial literacy among MSME owners to build symbolic capital, which in turn can improve overall business performance.
References
[1] Limanseto H. Perkembangan UMKM sebagai Critical Engine Perekonomian Nasional Terus Mendapatkan Dukungan Pemerintah. 2022.
[2] Liliyah A. PTPN Berdayakan Mitra Binaan UMKM di Tengah Pandemi. Republik. 2020;
[3] Garg N, Singh S. Financial literacy among youth. Int J Soc Econ. 2018;45(1):173–86.
[4] Gitman LJ, Chad J. Zutter. Principles of Managerial Finance. 14th Edition. Global Edi. Pearson Education Limited; 2015.
[5] Anggraeni BD. Pengaruh Tingkat Literasi Keuangan Pemilik Usaha Terhadap Pengelolaan Kuangan. J Vokasi Indones. 2016;6(1):1–13.
[6] Culebro-Martínez R, Moreno-García E, Hernández-Mejía S. Financial Literacy of Entrepreneurs and Companies’ Performance. J Risk Financ Manag. 2024;17(2).
[7] Dahmen P, Rodríguez E. Financial Literacy and the Success of Small Businesses: An Observation from a Small Business Development Center. Numeracy. 2014 Jan 1;7.
[8] Pires V, Trez G. Corporate reputation: A discussion on construct definition and measurement and its relation to performance. Rev Gest. 2018;25(1):47–64.
[9] Fajrina RS. Pengaruh Reputasi Perusahaan Dan Komunikasi Word Of Mouth terhadap Pembuatan Keputusan ( Studi Pada Mahasiswa / I Komunikasi Pascasarjana Universitas Indonesia ). Tesis Univ Indones. 2012;1–186.
[10] Purboyo A, Barlian I, Manurung ET. Pengaruh Faktor-Faktor Kebiasaan (Habitus), Modal (Capital), dan Perubahan (Changes) Sebagai Model Perilaku Keuangan untuk Meningkatkan Performa Keuangan Perempuan Pelaku UMKM (Studi di UMKM Binaan FE UNPAR - Badung dan Jakarta). Lembaga Penelitian dan Pengabdian Masyarakat Universitas Katolik Parahyangan. 2012.
[11] Sijabat DS, Fathurohman T. The Relationship of MSME WOner’s Financsial Lietracy Score and MSMES Performances: Case Study of MSMES in School of Business and Management Bandung Institute of Technology. J Innov Bus Entrep. 2017;2(1):23–37.
[12] Rehman K, Mia MA. Determinants of financial literacy: a systematic review and future research directions. Futur Bus J [Internet]. 2024;10(1):75. Available from: https://doi.org/10.1186/s43093-024-00365-x
[13] Yakob S, Yakob R, B.A.M. HS, Rusli RZA. Financial Literacy and Financial Performance of Small and Medium-sized Enterprises. South East Asian J Manag. 2021;15(1):72–96.
[14] Brejcha J, Wang C, Wang X, Wang Z, Wang L, Xu Q, et al. Financial Literacy in China as an Innovation Opportunity. Springer Int Publ Switz. 2016;439–50.
[15] Anshika, Singla A. Financial literacy of entrepreneurs: a systematic review. Manag Financ. 2022;48(9–10):1352–71.
[16] Sugiyono. Quantitative and Qualitative Research Methodology and R&D. In Bandung: Alfabeta; 2019.
[17] Purwanto A, Asbari M, Santoso TI. Analisis Data Penelitian Marketing: Perbandingan Hasil. J Ind Eng Manag Res. 2021;2(4):216–27.
[18] Ghozali I, Latan H. Partial Least Squares Konsep Teknik dan Aplikasi dengan Program Smart PLS 3.0. Semarang: Universitas Diponegoro Semarang.; 2015.
[19] Agarwalla SK, Barua SK, Jacob J, Varma JR. Financial Literacy Among Working Young in Urban India. Indian Inst Manag. 2013;509(October):144–7.
[20] Nicolini G, Haupt M. The assessment of financial literacy: New evidence from Europe. Int J Financ Stud. 2019;7(3):1–20.
[21] Yu G, Cheng P, Chen Y, Li Y, Yang Z, Chen Y, et al. Inoculating poultry manure with companion bacteria influences growth and development of black soldier fly (Diptera: Stratiomyidae) larvae. Environ Entomol. 2011;40(1):30–5.
[22] Gopang M, Nebhwani M, Khatri A, Marri H. An assessment of occupational health and safety measures and performance of SMEs: An empirical investigation. Saf Sci. 2017 Mar 1;93:127–33.
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Tri Rinawati, Abdul Karim, Asih Niati
This work is licensed under a Creative Commons Attribution 4.0 International License.
