Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) THE INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL MANAGEMENT ON THE PERFORMANCE OF SMEs IN MAKASSAR CITY Ridha Farha Aditia1.
Muhammad Ali2.
Julius Jilbert3 Universitas Hasanuddin farhaaditia16@gmail.
Volume 5 Nomor 1 Dersember 2023 e-ISSNJuni p-ISSN 2715-9892 Informasi Artikel Tanggal masuk 12 Juni 2023 Tanggal revisi 30 Agustus 2023 Tanggal diterima 03 Desember 2023 Abstract: This study aims to evaluate the effect of Financial Literacy and financial management on the performance of Micro.
Small and Medium Enterprises (MSME.
in Makassar City.
The population of this study is all MSMEs in which are registered with the Cooperatives and Micro.
Small and Medium Enterprises Office of Makassar City, with a total number of MSMEs that are still active in 2021 as many as 715 The sample selection was carried out using the Purposive Sampling technique, namely selecting samples based on consideration Data collection in this study was carried out through questionnaires and documentation.
The collected data were analyzed using descriptive quantitative analysis methods, instrument tests .
alidity and reliabilit.
, classical assumptions, and hypothesis testing which included simple regression, t test, and partial coefficient of determination .
The results showed that financial literacy partially had an effect positive and significant impact on MSME financial management in Makassar City.
This means that a good understanding of financial literacy can contribute to improving more effective financial management for MSMEs in Makassar City.
Kata Kunci:
Financial Literacy1
Financial Management 2
MSMEs3
INTRODUCTION
The main goal of economic development is to improve people's living standards, and to achieve this goal, the government refers to regulations that have been formulated to develop industries which are the main source of income for the country.
One sector of economic growth that has great potential to provide income is Micro.
Small and Medium Enterprises .
, therefore, the government implemented strategies to empower and increase MSME growth (Guntur et al.
, 2.
Makassar City.
South Sulawesi Province, is a center of economic activity that is of interest to business actors to develop their business or businesses.
Activities in various economic sectors encourage the increase of Micro.
Small and Medium Enterprises .
SME businesses, especially the culinary sector, are mushrooming and spreading everywhere.
Many business actors from outside Makassar are interested in opening a culinary business in Makassar City.
The Makassar City Office of Cooperatives and smes noted that in 2019 around .
16,492 MSME
actors and in 2020 there will be around 172,643 MSME actors in Makassar City.
The increasing existence of msmes requires efforts to develop and empower business actors to improve MSME performance, especially in financial management.
The ability to understand basic financial concepts helps business actors to manage their business finances well.
Financial management capabilities, for example those related to financial reporting are a problem for the government Especially related agencies to find out the development of msmes in general in Makassar City.
Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) There are still business actors who do not understand how to prepare financial reports, making it difficult to measure the development of MSME performance in Makassar City.
LITERATURE REVIEW
Financial Literacy According to Annamaria Lusardi .
"Financial literacy is an understanding and knowledge of basic financial concepts, including money management, financial decision making, investment, insurance, and financial planning for the future.
" Annamaria Lusardi, an economist and professor at Dartmouth College, defines financial literacy as an understanding of financial aspects that are fundamental and important in everyday life.
This includes knowledge of how to manage money, make smart financial decisions, and plan personal finances for the future (Halik et al.
, 2.
Financial management Brigham and Houston .
"Financial management is the process of making decisions about using a company's financial resources to achieve company goals efficiently and effectively.
Brigham and Houston, authors of well-known textbooks on financial management, define financial management as a decision-making process that includes planning, organizing, controlling, and supervising the use of a company's financial resources.
The goal is to achieve company goals in an efficient and effective way .
MSME performance Based on Law No.
20 of 2008 concerning Micro.
Small and Medium Enterprises (MSME.
in Abduh .
, the business world in Indonesia is divided into micro, small and medium enterprises and large enterprises.
Micro businesses are definitively owned businesses while large businesses are businesses that are larger than medium businesses.
Arroyo and Bague .
"The performance of MSMEs is a measure of the results and achievements of micro, small and medium enterprises in achieving their business goals, such as sales growth, profitability, market share, and a positive impact on the local economy.
Arroyo and Bague, in their research on SMEs, defines the performance of SMEs as a measure of the results and achievements of micro, small and medium businesses in achieving their business goals.
It covers various indicators, such as sales growth, profitability, market share, and the positive impact that MSMEs have on the local economy in which they operate.
Conceptual framework
LITERASI
KEUANGAN
(X.
KINERJA
UMKM
(Y)
MANAJEMEN
KEUANGAN
(X.
Hypothesis 1:
It is suspected that financial literacy has a significant positive effect on the performance of MSMEs Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) Hypothesis 2:
Allegedly Financial Management has a significant positive effect on the performance of SMEs
RESEARCH METHODS
The analysis was carried out using a quantitative approach with the aim of identifying the effect of financial literacy and financial management on the performance of MSMEs in the culinary sector in the city of Makassar.
A total of 100 culinary UMKM business actors were determined as research samples.
Data collection was carried out through questionnaires, and data analysis was carried out using multiple linear regression methods with a significance level RESULTS The validity test aims to ensure that the research instrument truly reflects the intended concept and measures the variables relevant accurately .
the following table describes the results of the validity test of the variables of financial literacy, financial management and msme Validation Test NO Statement r count r table Ket X1.
X1.
X1.
X1.
X1.
X1.
X1.
X1.
X1.
X1.
X1.
Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid X2.
X2.
X2.
X2.
X2.
Valid Valid Valid Valid Valid Valid Valid Valid Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) Source: Statistical data processing Valid Valid Valid Valid The reliability test was carried out to measure whether or not the questionnaire used in a study was consistent .
An instrument is said to be reliable .
if it has a Cronbach Alpha of more 70 ( Imam Ghozali, 2016:.
The results of the reliability test of this study can be seen in the following table:
Realiability Test Variable Cronbach N of Items Alpha Financial literacy Financial management MSME performance The results of the reliability test showed that all variables, financial literacy, financial management, and MSME performance, had a cronbach alpha above 0.
7, thus it was concluded that all of the research instrument variables were reliable.
Classic assumption test .
Normality test Normality test is used to check whether the observed data is normally distributed.
The normal distribution is an important assumption in many methods statistics, including regression analysis, hypothesis testing, and confidence intervals.
If the data follows a normal distribution, then some statistical methods will give results which is more accurate.
The normality test in this study used the Kolmogorov -Smirnov Test method to test normality by comparing the data distribution with the normal distribution.
One-Sample Kolmogorov-Smirnov Test Unstanda Residuals Normal Means Parameters a,b Deviatio Most Extreme Differences Positive Negative Test Statistics Sig.
-taile.
Test distribution is Normal.
Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) Calculated from data.
Lilliefors Significance Correction.
Based on the Kolmogorov smirnov table, the Asymp .
Sig.
-taile.
064 > 0.
05, meaning that the residual data is normally distributed.
These results can be explained by the results of the NormaProbability Plot graphical analysis.
The PP Plot chart shows that the data is spread out and follows the diagonal line, so it can be concluded that the data is normally distributed .
Multicollinearity Test One common way to detect multicollinearity is to use the Variance Inflation Factor (VIF): VIF measures how much the variance of the regression coefficient increases due to If the VIF is greater than 5 or 10, then there is an indication of significant The following are the results of the multicollinearity test:
Collinearity Statistics Model
VIF
(Constan.
Financial Literacy Financial Management Dependent Variable MSME Performance multicollinearity test result table shows that the tolerance value of the financial literacy and financial management variables is 0.
321 > 0.
10, while the VIF value on variable Financial literacy and financial management of 3 .
114 < from10, therefore concluded that No happening symptom Multicollinearity in the regression model.
Autocorrelation Test Commonly used methods to test autocorrelation are:
Durbin-Watson test: This test provides a statistic to test whether there is a positive or negative autocorrelation in the regression error.
Durbin Watson values can be seen in the model summary table Summary Model b Adjusted R std.
Error of DurbinModel
R Square Square the Estimate Watson
1,813
Predictors: (Constan.
Financial Management.
Financial Literacy Dependent Variable: UMKM Performance Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) Test Durbin-Watson that is with compare mark Durbin-Watson (DW) from results regression with mark Durbin-Watson Table.
Procedure the test as following:
It can be seen that the Durbin-Watson value is 1 .
dl = 1.
6337 dU = 1.
The DW value lies at area dU < DW < 4-dU .
, 715 < 1.
813 < 2, .
Thus it can be concluded that no autocorrelation occurs regression models.
Heteroscedasticity Test A good regression model is a model that does not have heteroscedasticity (Ghozali, 2.
determine heteroscedasticity in this study using the Glejser test.
The basis for decision making in this test is if the significance value is Ou 0.
05, it can be concluded that there is no heteroscedasticity problem, but vice versa if the significance value is <0.
05, it can be concluded that there is a heteroscedasticity problem.
The results of the heteroscedasticity test were obtained as follows:
Coefficients a Standardize Unstandardized Coefficient Coefficients Model Error Betas Sig.
(Constan.
2,844 Financial literacy Financial - .
Dependent Variable: ABS_RES The statistical test results show that the significance value of the financial literacy variable is 324 more than 0.
05, so is the Financial Management Variable 0.
585 more than 0.
The Glejser test results show that there is no heteroscedasticity between the independent variables in the regression model.
The results above can be explained with a scatterplot graph, where the points formed must spread randomly, spread both above and below the number 0 on the Y axis.
If these conditions are met, heteroscedasticity does not occur and the regression model is feasible to use.
The results of the heteroscedasticity test using the scatterplot graph are shown in Figure 4.
2 below:
Figure 4.
2 Scatterplot Graph Linear Regression Test Results .
T test Results test t can seen in inthe table contained in the sig column ( significance ).
Basic decision making in determine whether or not there is an influence between the independent variables Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) and variable bound are as follows.
If the significance value < = 0.
05, it can be said that there is influence between the independent variables on the variables bound in a manner Partial.
If the significance value is > = 0.
05, then it can be said that No there is influence between variable free tovariable bound.
The results of the T test processed in SPSS are as follows:
Coefficients a Standardiz Unstandardized Coefficient Coefficients Error Betas Model (Constan.
Financial Literacy Financial Dependent Variable: UMKM Performance 5,560 8,646 Sig.
The coefficient table above shows that:
The significance value of the financial literacy variable is 0.
000 <0.
05, which means that financial literacy is proven to have an influence on the performance of MSMEs.
The value of the beta coefficient is 0.
393 meaning that if financial literacy increases by one unit, then the performance of MSMEs will increase by 0.
393 assuming other independent variables have a fixed value.
The significance value of the financial management variable is 0.
000 <0.
This proves that financial management has a significant positive influence on the performance of MSMEs.
The value of the beta coefficient is 0.
611, meaning that if financial management increases by one unit, then the performance of MSMEs will increase by 611 assuming the other independent variables are of a fixed value.
Determination Coefficient Test The coefficient of determination (R 2 ) is used to measure how much big ability variable independent explain variable dependent.
The results of the determination coefficient test can be seen in the following model summary table Summary Model b Adjusted R Model R Square Square Error of the Estimate Predictors: (Constan.
Financial Management.
Financial Literacy Dependent Variable: UMKM Performance Based on the Summary model table above, it can be seen that the R square value is 0.
or 92%.
Which means that the MSME performance variable is affectedby variable independent that is Financial literacy and Financial management by 92%.
While the remaining 8% is influenced by other variables that are not included in this study.
Vol 5 No 1 .
: Paulus Journal of Accounting (PJA) DISCUSSION Effect of Financial Literacy on MSME performance The results of linear statistical tests prove that financial literacy has a significant positive effect on the performance of MSMEs in the city of Makassar.
Thus the first hypothesis which states that financial literacy has a significant positive effect on the performance of MSMEs in the city of Makassar has been proven and accepted.
Financial literacy includes an understanding of basic financial concepts, including money management, investing, financial planning, debt management, and an understanding of financial risk.
Good financial literacy is the key to making wise financial decisions and affecting the performance of Micro.
Small and Medium Enterprises (MSME.
Financial literacy allows MSME owners to understand financial reports such as balance sheets, income statements and cash flow.
By understanding financial reports, business owners can track their business' financial performance, identify trends, and make more informed business decisions The Influence of Financial Management on MSME Performance The statistical test results prove that financial management has a significant positive effect on the performance of MSMEs in the city of Makassar.
The statistical test results show that the significance of financial management on MSME performance 0.
00 < 0.
These results prove the second hypothesis which states that there is allegedly a significant positive relationship between financial management and MSME performance in the city of Makassar.
Financial management is a factor that needs to be considered because it can determine the success or failure of a business performance.
Financial management that is not careful or not good can cause business actors to be unable to take preventive and preventive actions against irregularities that may occur in their business activities (Hertadiani & Lestari, 2.
A related study conducted by Rumain & Mardani .
found a positive and significant effect on financial management on MSME performance.
In contrast to the observations made by Ardiyani et al, .
financial management does not significantly affect SME performance.
According to Khadijah and Purba .
financial management includes several indicators including financial planning, recording, reporting, control.
The results of this study prove that financial literacy affects the performance of MSMEs in the city of Makassar.
Likewise, financial management has a strong influence on the performance of MSMEs in the city of Makassar.
The combination of good financial literacy and effective financial management will help MSMEs improve their business performance .
MSME owners who have a solid understanding of the financial aspects of their business can make smarter decisions , manage risks better, and achieve sustainable growth.
Thus, investing in financial literacy and Financial management can have a positive impact on success and MSME business BIBLIOGRAPHY