Financial Literacy: An Empirical Study from Small–Medium Enterprises in Sidoarjo, East Java


One of the most important factors for the financial decision-making is financial literacy, which is the main topic of this study. The purpose of this research was to measure financial literacy from Small–Medium Enterprises perspective. In addition, this study was conducted to prove the differences in financial literacy based on demographic factors (gender, ages, SME’s ages). The subjects of this study were Small–Medium Enterprises (SME’s) in Sidoarjo Regency, East Java Indonesia. The financial literacy was measured by basic knowledge of financial literacy, credit management, investment management, and risk management. Independent T-test analysis and analysis of variance (ANOVA) were conducted during the research. It was found that there is no difference among financial literacy on education levels, demographic factors (gender, age, SME’s ages). There is no difference in the level of financial literacy based on educational level. Gender, age of manager, and business ages are not the distinguishing factors in financial literacy. The results stated that the educational level, gender, age of managers and business ages does not affect financial literacy.



Keywords: demographic factors, financial literacy, small medium enterprises

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