APTISI Transactions on Technopreneurship (ATT) Vol.
No.
November 2025, pp.
904Oe913 E-ISSN: 2656-8888 | P-ISSN: 2655-8807.
DOI:10.
ye Assessing the Drivers of Financial Distress in Indonesian Rattan SMEs through Digital and Financial Perspectives Yoyo Sudaryo1* .
Deni Hamdani2 .
Nunung Ayu Sofiati3 .
Dayan Hakim Natigor Sipahutar4 Sutisna5 1 Faculty of Management.
Indonesia Membangun University.
Indonesia 2 Faculty of Economics and Business.
Indonesia Membangun University.
Indonesia 3 Master of Management.
Indonesia Membangun University.
Indonesia 4 Master of Management.
Jayabaya University.
Indonesia 5 Master of Management.
Bina Bangsa University.
Indonesia 1 yoyo.
sudaryo@inaba.
id, 2 deni.
hamdani@inaba.
id, 3 nunungayu.
sofiati@inaba.
id, 4 dayanhakim7@gmail.
5 sutisna0902@gmail.
*Corresponding Author
Article Info
ABSTRACT
Article history:
This studyAos objectives are to ascertain the impact of variables that determine financial distress among Small and Medium-sized Enterprises (SME.
during the COVID-19 pandemic and post-pandemic period, including the perception of SMS offenders, knowledge of digital marketing, and growth in net profits, as well as to offer solutions to the issues that SMEs face.
In Cirebon a descriptive and verifying strategy is taken in the employment of quantitative methodologies in the research.
Primary data were used.
Gathering information from fieldwork and library research based on surveys distributed and previously published works on SMSAos Rattan crimes registered with CirebonAos Micro & Medium Enterprises Cooperation Service.
Verification statistics analysis procedures include the use of hypothetical testing with partial and simultaneous tests .
and t-tes.
as well as data analysis testing using double linear regression.
One hundred respondents from SME victim Rattan Cirebon provided the sample data.
IBM SPSS version 21.
0 is the analytical program that was utilized to process the According to some of the research findings, financial distress is greatly impacted by the impression of SME offenders, is unaffected by knowledge of digital marketing, and is greatly impacted by an increase in net profit.
Simultaneous research findings reveal that the perspective of SME offenders, comprehension of digital marketing, and growth in net profit have a noteworthy impact on financial Distress.
Submission November 9, 2024 Revised December 30, 2024 Accepted October 30, 2025 Published November 21, 2025 Keywords:
Perception Digital Marketing Net Profit Financial Distress SMEs This is an open access article under the CC BY 4.
0 license.
DOI: https://doi.
org/10.
34306/att.
This is an open-access article under the CC-BY license .
ttps://creativecommons.
org/licenses/by/4.
AAuthors retain all copyrights INTRODUCTION Small and Medium-sized Enterprises (SME.
play a vital role in achieving the Sustainable Development Goals (SDG.
, particularly Goal 8 on Decent Work and Economic Growth.
Goal 9 on Industry.
Innovation, and Infrastructure, and Goal 17 on Partnerships for the Goals.
SMEs are essential drivers of job creation, income generation, innovation, and equitable economic growth.
They contribute significantly to community Journal homepage: https://att.
id/index.
php/att APTISI Transactions on Technopreneurship (ATT) ye resilience by distributing goods and services, stimulating local markets, and strengthening regional economies .
, .
However, it is widely recognized that SMEs often encounter financial challenges and have a higher probability of experiencing bankruptcy, regardless of their business environment be it in terms of industry or country context .
One of the major obstacles SMEs face is obtaining access to credit or funding from financial institutions due to insufficient collateral, which hinders their ability to expand and sustain operations that contribute to local and regional economic development .
, .
Furthermore, financial distress experienced by interconnected enterprises can lead to downturns across specific industries or regions.
When a company reports a negative net profit, it can be categorized as being in financial crisis .
In Indonesia, over the last three years, the COVID-19 pandemic has severely impacted Micro.
Small, and Medium Enterprises (MSME.
, particularly in the Cirebon region.
Many SMEs have faced significant marketing and financing challenges during this period .
, .
Financing is a crucial element in business sustainability, as it enables entrepreneurs to establish and expand their ventures.
When faced with funding constraints, entrepreneurs can seek alternative solutions such as attracting investors or applying for government financial assistance programs .
Stable financial access provides SMEs with a stronger foundation to manage operations effectively and maintain resilience in the face of economic uncertainty .
The rattan industry in Cirebon historically one of the regionAos economic pillars has also experienced a notable decline due to global inflation and fluctuating demand in international markets .
Many rattan artisans .
have declared bankruptcy, largely because production costs outweigh the global selling prices of rattan-based furniture .
In addition to financial constraints.
SMEs face numerous structural challenges, including limited access to financial institutions, low-quality human resources .
, inadequate financial recording practices, weak marketing capacity, restricted access to information and technology, lack of strategic partnerships, and high operational costs arising from complex administrative and bureaucratic procedures .
, .
Aligned with the SDGs, particularly the commitment to promote sustainable and inclusive economic growth, this study aims to analyze the determinants of financial distress among SMEs during and after the COVID-19 pandemic .
Specifically, it examines the effects of SME ownersAo perceptions, understanding of digital marketing, and growth in net profits on financial distress .
, .
The study also seeks to propose strategic solutions to support SMEs in overcoming these challenges and to strengthen their contribution to sustainable economic recovery and local development .
LITERATURE REVIEW
Financial distress is characterized in a number of ways.
A company is in financial distress when it is unable to pay off its current commitments.
Alternatively, a company is in financial difficulty when it lacks the financial means to pay back its contractual obligations .
A company is in financial distress if it cannot pay its debts including alternatively, it can be defined as a situation when a company makes too little money to cover its expenses .
, .
Financially troubled businesses typically have low cash flow and incur losses but do not go bankrupt.
Financial distress can also be described as a state in which interest payments Exceed profits Before Interest.
Taxes.
Depreciation, and Amortization (EBITDA) for a company.
This is known as the firmAos risk buffer .
Perception can be defined as the process by which humans select, arrange, and interpret sensory data to produce a meaningful understanding of the world .
It is the process through which an individual selects, arranges, and analyzes data.
The process by which MSMEs actors use information obtained through the five senses to select, arrange .
, and interpret data in order to construct a meaningful picture of the world is thus referred to as their perception.
In the context of SMEs, perception plays a crucial role in influencing decision-making, particularly in responding to market changes, managing financial challenges, and adapting to technological advancements.
Digital marketing is the outcome of evolutionary marketing.
When businesses primarily market through digital media platforms, evolution takes place .
This transition signifies a strategic shift from traditional to modern marketing approaches, allowing businesses to reach wider audiences efficiently and measure their marketing performance in real time.
Digital media platforms can be utilized to facilitate ongoing, bidirectional, and intimate dialogues between customers and marketers .
, .
Digital marketing is a multi media marketing activity that includes branding.
As an illustration .
, consider blogs, websites, email, adwords, and different social media platforms.
The digital marketing sales dimension is described E-ISSN: 2656-8888 | P-ISSN: 2655-8807 ye as a component of the 4P marketing mix, which also includes product, price, location, and promotion .
Therefore, the integration of perception and digital marketing understanding among MSME actors becomes essential in shaping their business strategies and ensuring competitiveness in the digital era.
Net profit is the profit less all costs borne by the business within a given time period, such as taxes .
Net profit is determined by subtracting burdensome costs from gross profit, which includes taxes.
The predicted net profit in this research is a rise in net profit itself .
To gather data on motivation, planning, and the anticipated growth in profit, direct interviews with SME actors are conducted to control the variable of growing net profit .
, .
Framework of Reference The following is a framework research:
Figure 1.
Framework Research Figure 1 framework Research illustrates the conceptual framework that describes the relationship between the key variables analyzed in this study.
The framework begins with the strategic position of SMEs and their significant contribution to the economy, which often faces various financial challenges when financial issues arise.
These challenges are influenced by several factors, including the perception of SMEs offenders, comprehension of digital marketing, and net profit growth, which collectively affect the level of financial distress experienced by SMEs.
This model explains that when SMEs encounter financial problems, managerial perception, digital capability, and profitability growth become critical determinants in mitigating or exacerbating financial distress.
The research hypotheses of this study are formulated as follows:
A H1: The perception of SME offenders has a positive and significant impact on Financial Distress.
A H2: The comprehension of digital marketing has a positive and significant influence on Financial Distress.
A H3: Net profit growth exerts a positive and significant effect on Financial Distress .
A H4: Financial Distress is affected by the perception of SME offenders, comprehension of digital marketing, and net profit growth simultaneously.
RESEARCH METHOD
The quantitative descriptive-verification strategy used in this studyAos research methodology included multiple linear regression and partial or simultaneous hypothesis testing .
, .
Specialized populations or samples are studied using quantitative research methodologies, which are based on the positivist notion .
To evaluate and characterize pre-existing hypotheses .
, research instruments are used to collect data, which is then processed quantitatively or statistically.
The description of phenomena .
in a methodical, factual, and accurate manner concerning the obstacles SMEs encounter in averting the level of financial difficulties encountered by SMEs registered with the Cirebon SMEs Cooperative Service is the researchAos descriptive verification objective, which guided the choice of this approach .
APTISI Transactions on Technopreneurship (ATT).
Vol.
No.
November 2025, pp.
904Ae913 ye APTISI Transactions on Technopreneurship (ATT) Primary data were the type of data used in this inquiry .
The studyAos data originated from a questionnaire that was modified from previous research and distributed to respondents SMEs who were registered with the Cooperatives.
Micro .
Small and Medium Enterprises Service in Cirebon, as well as interviews with SMEs actors regarding their financial struggles .
While the secondary data that will be collected will be found in papers, reports, and journals that support research .
For this study, one hundred participants were given a Likert scale model questionnaire, which was used to collect data .
In this study, probability sampling was employed as the sampling technique, which offers each element .
in the population an equal chance of being selected as a sample member .
Simple random sampling is the approach used, which involves selecting sample members at random from a population without taking into account the strata within that group .
The strategic position of SMEs and their big contribution highlight the financial challenges encountered when financial issues arise, as well as the perception of SME owners and their comprehension of digital marketing, net profit growth, and financial distress .
, .
RESULT AND DISCUSSION
Multiple Linear Regression Multiple linear regression was conducted to provide an in depth evaluation of the relationship between the dependent variable .
Financial Distress, and the independent variables Perception of SMEs offenders.
Understanding of Digital Marketing, and Net Profit Growth.
The results of the regression analysis are presented below .
Table 1.
Multiple Linear Regression Results Coefficientsa Model Unstandardized Standardized Coefficients Coefficients Std.
Error Beta (Constan.
The perception of 0.
SMEs Offenders Comprehension of 0.
Digital Marketing 0.
Net Profit Growth 1.
Dependent Variable: Financial Distress Sig.
Table 1, multiple Linear Regression Results shows the influence of three independent variables on financial distress.
The results indicate that the perception of SMEs offenders has a positive and significant effect on financial distress (Sig.
= 0.
, comprehension of digital marketing has a negative but not significant effect (Sig.
= 0.
, and net profit growth has a positive and significant effect (Sig.
= 0.
The resulting regression equation is:
Y = 1.
278X1 Oe 0.
344X2 1.
This means that the perception of SME offenders and net profit growth increase financial distress, while comprehension of digital marketing tends to reduce it, although the effect is not statistically significant.
Coefficient Determination Test .
2 ) A useful metric for assessing how well a model can account for variations in the dependent variable is the determination coefficient test .
, .
The following are the outcomes of the SPSS 21 determination coefficient test:
E-ISSN: 2656-8888 | P-ISSN: 2655-8807
Table 2.
Coefficient Determination Test Result .
2 ) Model Summaryb Model R Square Adjusted R Square Std.
Error of the Estimate Durbin-Watson Predictors: (Constan.
Net profit growth, the perception of SMEs.
Digital Marketing Dependent Variable: Financial Distress Table 2, the coefficient of determination value is obtained to be as high as 0.
734, or 73.
4%, indicating that a simultaneous link .
4% to financial challenges is provided by the perception of SME offenders .
, comprehension of digital marketing, and net profit growth.
Although additional factors not included in the study have an impact on the remaining 26.
Hypothesis Partial Testing .
-tes.
To examine whether Financial Distress is affected by the perceptions of SME offenders .
, the understanding of digital marketing, and net profit growth, the t-value is computed based on the distribution.
For a two tailed test, the critical t-value is 1.
985 with = 0.
05 and degrees of freedom .
f ) = n Oe k Oe 1 = 100 Oe 4 Oe 1 = 95 .
, .
The results of the partial hypothesis testing are presented as follows:
Table 3.
Partial Test Calculation Results .
-tes.
Coefficientsa Model Unstandardized Standardized Coefficients Coefficients Std.
Error Beta (Constan.
The perception of 0.
SMEs Offenders Comprehension of 0.
Digital Marketing 0.
Net Profit Growth 1.
Dependent Variable: Financial Distress Sig.
Table 3 presents the partial test calculation results .
-tes.
, showing the effect of each independent variable on financial distress.
The perception of SME offenders has a t-value of 3.
845 and a significance level of Sig.
= 0.
000 (< 0.
, indicating a positive and significant effect on financial distress.
The comprehension of digital marketing has a t-value of Oe1.
156 with a significance level of Sig.
= 0.
250 (> 0.
, meaning it has a negative but not significant effect.
Meanwhile, net profit growth has a t-value of 3.
641 and a significance level of Sig.
= 0.
000 (< 0.
, showing a positive and significant effect on financial distress.
This implies that perceptions of SME offenders and net profit growth significantly contribute to changes in financial distress, while comprehension of digital marketing does not have a significant influence.
A H1 According to the tcount calculation above, the perception of SMEs offenders has a tcount value of 845 and a t-table value of 1.
985 with a sig value of 0.
000 < 0.
the perception of SMEs offenders has an effect and significant on Financial Distress because the tcount value > t-table, rejecting H0 and accepting H1 .
A H2 Based on the tcount calculation above, the t-table value is -1.
156 with a sig value of 0.
250 > 0.
and the tcount value for Comprehension of Digital Marketing is -1.
H2 is rejected and H0 is accepted since the -tcount value < -t-table, indicating that Comprehension of Digital Marketing has no effect on Financial Distress .
A H3 According to the tcount calculation above, net profit growth has a tcount value of 3.
641 and a ttable value of 1.
985 with a sig value of 0.
000 < 0.
net profit growth has an effect and significant on Financial Distress because the tcount value > t-table, rejecting H0 and accepting H3 .
APTISI Transactions on Technopreneurship (ATT).
Vol.
No.
November 2025, pp.
904Ae913 APTISI Transactions on Technopreneurship (ATT) ye Hypothesis Simultaneous Testing (F-tes.
To determine whether Debt to Asset Ratio.
Company Size.
Institutional Ownership, and Earnings Management collectively affect Accounting Conservatism, the F-test is performed using the distribution table.
The calculated F-table value is 2.
45 at a significance level of = 0.
05, with degrees of freedom V1 = 3 and V2 = 96.
Ae.
The outcomes of the simultaneous hypothesis testing are presented below:
Table 4.
Simultaneous Test Calculation Results (F-tes.
ANOVAa Model Sum of Df Mean Square F Sig.
Squares Regression Residual Total Dependent Variable: Financial Distress Predictors: (Constan.
, net profit growth, the perception of SMEs, comprehension digital marketing Based on the findings presented in Table 4, the computed F-value (Fcoun.
192, with a significance level .
-valu.
The critical F-value (Ftable ) is 2.
45, with degrees of freedom V1 = 95, .
Oek Oe.
and V2 = 4, at a significance level of = 0.
The variables perception of SME offenders, comprehension of digital marketing .
, and net profit growth collectively exert a significant effect on Financial Distress, as the calculated F-value .
exceeds the critical F-value .
and the significance level of 0.
000 is below 0.
000 < 0.
Therefore, hypothesis H4 is accepted, while the null hypothesis (H0 ) is rejected .
MANAGERIAL IMPLICATION
The findings of this research offer several managerial implications for SME owners, policymakers, and stakeholders, particularly in the rattan industry in Cirebon.
The notable impact of SME offendersAo perceptions on financial distress highlights the importance of improving managerial awareness and financial literacy.
SME
owners are encouraged to take a proactive role in identifying early signs of financial distress, managing financial resources effectively, and enhancing their ability to make strategic financial decisions.
Continuous development of training programs, workshops, and mentoring activities related to financial management and risk assessment is essential to strengthen managerial competence and resilience.
Although the comprehension of digital marketing did not have a statistically significant impact, it remains a strategic component in enhancing business performance and competitiveness.
Managers should continue to integrate digital marketing practices into their business operations, as consistent use of digital platforms can increase brand visibility, strengthen customer relationships, and expand market reach.
Therefore, capacity-building programs focusing on digital literacy and technological adaptation should be prioritized to foster long-term business sustainability.
Furthermore, the significant relationship between net profit growth and financial distress implies that maintaining profitability is crucial for financial stability.
Managers should emphasize cost control, innovation, and effective pricing strategies to improve financial performance.
Regular financial monitoring and reinvestment of profits into productive activities can enhance business continuity and competitiveness.
For policymakers, the findings highlight the necessity of establishing integrated financial and digital empowerment programs for SMEs.
Collaborative partnerships between government agencies, educational institutions, and financial organizations can provide holistic support to SMEs through access to funding, business training, and digital transformation initiatives.
Such synergy will strengthen the financial resilience and competitiveness of SMEs, particularly in traditional sectors such as the rattan industry, ensuring their contribution to regional economic recovery and sustainable growth.
CONCLUSION
The verification analysis, which was primarily done using the partial hypothesis testing t-test method, yielded the following results the perception of SMEs offenders has an effect and significant to Financial Distress.
Comprehension of digital marketing has no effect on Financial Distress.
net profit growth has an effect
E-ISSN: 2656-8888 | P-ISSN: 2655-8807
ye and significant Financial Distress.
The perception of SMEs offendrs, comprehension of digital marketing and net profit growth were found to have a simultaneous effect on Financial Distress based on the results of simultaneous hypothesis testing (F-tes.
As this study still has several limitations concerning sample selection, theoretical framework, and problem analysis, the author suggests that future researchers investigating financial distress in SMEs as a dependent variable should consider adopting more contemporary theories, enlarging the sample size, and substituting the current indicators and independent variables with alternative ones that could provide a more comprehensive explanation of financial distress.
DECLARATIONS
About Authors Yoyo Sudaryo (YS) https://orcid.
org/0000-0002-5129-1958 Deni Hamdani (DH) https://orcid.
org/0000-0002-5041-1946 Nunung Ayu Sofiati (NA) https://orcid.
org/0009-0006-7285-3995 Dayan Hakim Natigor Sipahutar (DN) Sutisna (SS) https://orcid.
org/0000-0001-5703-7136 https://orcid.
org/0009-0005-2443-3657 Author Contributions Conceptualization: DH.
Methodology: SS.
Software: YS.
Validation: NA and SS.
Formal Analysis:
DN and NA.
Investigation: YS.
Resources: SS.
Data Curation: NA.
Writing Original Draft Preparation: YS and DN.
Writing Review and Editing: NA and DH.
Visualization: .
All authors.
YS.
DH.
NA.
DN, and SS, have read and agreed to the published version of the manuscript.
Data Availability Statement The data presented in this study are available on request from the corresponding author.
Funding The authors received no financial support for the research, authorship, and/or publication of this article.
Declaration of Conflicting Interest The authors declare that they have no conflicts of interest, known competing financial interests, or personal relationships that could have influenced the work reported in this paper.
REFERENCES