Analysis of the Role of Financial Literacy and Financial Inclusion on the Financial Performance of MSMEs
Keywords:
Financial Literacy, Financial Inclusion, Financial Performance, MSMEs, Literature Review
Abstract
This study aims to comprehensively analyze the role of financial literacy and financial inclusion on the financial performance of MSMEs in Indonesia through a literature review from various reputable national and international sources. The results show that good financial literacy encourages MSMEs to make more informed financial decisions, improve the quality of financial reports, and strengthen risk management capabilities. Meanwhile, financial inclusion expands MSMEs' access to capital, insurance, and digital payment services, thereby increasing business efficiency and competitiveness. However, challenges remain, particularly in the 3T (frontier and remote) regions, such as disparities in access, limited infrastructure, and a dominant cash transaction culture. Therefore, integrated policy interventions are needed in the form of contextual financial literacy education, strengthening the digital financial ecosystem, and improving infrastructure. This study is expected to serve as a reference for researchers, practitioners, and policymakers in formulating sustainable MSME empowerment strategies in the digital era
References
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Tabrani, Amirah, Sri Murdiati, Agnes Dwita Susilawati, & Tri Sulistyani. (2025). Financial Literacy Assistance for MSMEs in Mandiraja Village, Moga District, Pemalang Regency. Journal of Community Service (JUDIMAS), 3(1), 281–288. https://doi.org/10.54832/judimas.v3i1.513
Utami, K., Parianom, R., & Novanti, H. (2025). Ekombis Review-Scientific Journal of Economics and Business The Impact Of Financial Literacy, Financial Inclusion And Technology On Increasing Msme Profits (Depok City Case Study) ARTICLE HISTORY. Ekombis Review: Scientific Journal of Economics and Business, 13(1), 361–370. https://doi.org/10.37676/ekombis.v13i1
Vinsen April Linus Zai, I. H. N. A. B. A. T. (2023). Analysis of the Role of Financial Technology and Financial Literacy in Increasing Access to Financial Inclusion for SMEs in Gunungsitoli City. Journal Of Social Science Research, 4(2).
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Widyaningsih, E. N., & Widodo, H. (2024). Improving MSME Performance: The Impact of Financial Inclusion and Financial Literacy. Journal of Economic and Community Empowerment, 1(2), 17. https://doi.org/10.47134/jpem.v1i2.256
World Bank. (2023). Indonesia's Economic Prospects. www.worldbank.org/iep.
Fatonah, S., Panglipurningrum, Y. S., & Imron Pahlawi, L. A. (2024). Financial Education as an Effort to Increase Banking Literacy in the Community in the Karanganyar Regency Regional Government. Journal of Devotion Western Science, 3(07), 882–889. https://doi.org/10.58812/jpws.v3i07.1410
Fitriani, Ferazona, S., Suyono, A., Saputra, R. E., & Defriona, B. (2024). The Importance of Digital Financial Literacy for Micro, Small, and Medium Enterprises. Scientific Charity: Journal of Community Service, 5(2), 358–365. https://doi.org/10.36709/amalilmiah.v5i2.184
Habibullah, H. (2019). Financial Inclusion and Poverty Reduction: A Study on the Distribution of Non-Cash Social Assistance. Socio-Informatics, 5(1). https://doi.org/10.33007/inf.v5i1.1657
Hanifan, M. Z. (2017). Analysis of financial statements as an evaluation of the company's performance in companies in the Tohaga Market area. Financial Balance Sheet: Scientific Journal of Accounting and Finance, 12(1). https://doi.org/10.32832/neraca.v12i1.1985
HUSTON, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Kusnandar, D. L. (2018). Women and Banking: An overview of the role of financial inclusion for women MSME entrepreneurs in Indonesia. Monex Journal Research Accounting Tegal Polytechnic, 7(1). https://doi.org/10.30591/monex.v7i1.759
Lusardi, A. and O. S. M. (2014). The Importance of Financial Literacy in Economics: Theory and Evidence. Journal of Economic Literacy, 5–44.
Marsenta, G., Kosasih, K., Fitriana, F., Paramarta, V., & Dongoran, H. (2024). The Influence of Financial Literacy, Financial Inclusion and Financial Behavior on the Performance of MSMEs in Depok City. Innovative: Journal Of Social Science Research, 4(2), 9066–9081. https://doi.org/10.31004/innovative.v4i2.10622
Pellu, A. (2024). Improving access to finance: Fostering inclusive economic growth. Currency: Journal of Islamic Economics and Banking, 2(2), 279–295. https://doi.org/10.32806/ffyp8n53
Pratiwi, A. E., Nurfadillah, A. D., Nursadrina, L., Mufida, L., Nurjannah, & Nengsi, S. R. (2023). Financial Inclusion in the Banking Industry: Encouraging Access to Banking Services. Journal of Management, Business and Economics (JIMBE), 1(1), 19–24. https://doi.org/10.59971/jimbe.v1i1.4
Putri, D. A. P. Y., Armiani, A., & Setiawati, E. (2024). The Effect of Financial Literacy, Payment Gateway, Peer to Peer Lending, and Financial Inclusion on Financial Performance. Competence: Scientific Journal of Economics and Business, 3(3), 972–985. https://doi.org/10.57141/kompeten.v3i3.151
Riyani, R., & Virgi, E. (2025). Challenges and Obstacles in the Implementation of Financial Literacy among MSMEs in Pesawaran, Lampung. MDP Student Conference, 4(2), 944–949. https://doi.org/10.35957/mdp-sc.v4i2.11245
Rojulmubin, F., Nurhidayah, I., Lim, W., F. Arifianto, C., & N. Nazar, S. (2023). Analysis of Profitability Ratio and Liquidity Ratio in Measuring the Financial Performance of Pt Adhi Karya 2017-2021. Journal of Economics and Business, 15(2), 11–19. https://doi.org/10.55049/jeb.v15i2.218
Sari, M. P., Baining, M. E., & Saijun, S. (2024). The Role of OJK (Financial Services Authority) in Improving Financial Literacy in the Community. Journal of Development, 12(2), 210–223. https://doi.org/10.53978/jd.v12i2.410
Siswa, I., & Agustin, G. (2020). Analysis of the Influence of Financial Inclusion on the Human Development Index in Indonesia in 2015-2018. Scientific Journal of Economics and Business, 17(2), 121–130. https://doi.org/10.31849/jieb.v17i2.4091
Sugiharti, H., & Maula, K. A. (2019). The Influence of Financial Literacy on Student Financial Management Behavior. Accounthink : Journal of Accounting and Finance, 4(2). https://doi.org/10.35706/acc.v4i2.2208
Suleiman, A., Dewaranu, T., & Anjani, N. (2022a). Creating Informed Consumers: Tracking Financial Literacy Programs in Indonesia. https://doi.org/10.35497/359634
Suleiman, A., Dewaranu, T., & Anjani, N. (2022b). Creating Informed Consumers: Tracking Financial Literacy Programs in Indonesia. https://doi.org/10.35497/359634
Tabrani, Amirah, Sri Murdiati, Agnes Dwita Susilawati, & Tri Sulistyani. (2025). Financial Literacy Assistance for MSMEs in Mandiraja Village, Moga District, Pemalang Regency. Journal of Community Service (JUDIMAS), 3(1), 281–288. https://doi.org/10.54832/judimas.v3i1.513
Utami, K., Parianom, R., & Novanti, H. (2025). Ekombis Review-Scientific Journal of Economics and Business The Impact Of Financial Literacy, Financial Inclusion And Technology On Increasing Msme Profits (Depok City Case Study) ARTICLE HISTORY. Ekombis Review: Scientific Journal of Economics and Business, 13(1), 361–370. https://doi.org/10.37676/ekombis.v13i1
Vinsen April Linus Zai, I. H. N. A. B. A. T. (2023). Analysis of the Role of Financial Technology and Financial Literacy in Increasing Access to Financial Inclusion for SMEs in Gunungsitoli City. Journal Of Social Science Research, 4(2).
Waruwu, M. (2024). Qualitative Research Approach: Concepts, Procedures, Advantages and Roles in the Field of Education. Affects: Journal of Educational Research and Evaluation, 5(2), 198–211. https://doi.org/10.59698/afeksi.v5i2.236
Widyaningsih, E. N., & Widodo, H. (2024). Improving MSME Performance: The Impact of Financial Inclusion and Financial Literacy. Journal of Economic and Community Empowerment, 1(2), 17. https://doi.org/10.47134/jpem.v1i2.256
World Bank. (2023). Indonesia's Economic Prospects. www.worldbank.org/iep.
Published
2025-10-29
How to Cite
Wisudawaty, I., & Nur Arisah. (2025). Analysis of the Role of Financial Literacy and Financial Inclusion on the Financial Performance of MSMEs. International Journal of Education, Vocational and Social Science , 4(04), 725-735. https://doi.org/10.63922/ijevss.v4i04.2447
Contact Person +6282139474255
Email : ijevss@citakonsultindo.or.id / editor.ijevss@gmail.com
