How money circulates in Indonesian SMEs: An analysis of Financial Literacy, Business Performance, Financial Management Behavior and Financial Attitude

Abstract

The owner of Micro, Small, and Medium Enterprises (MSMEs) are someone who is responsible for managing their business finances. This research aims to determine the influence of financial literacy and financial attitude on the financial management behavior of MSMEs. The subject of this study was MSMEs entrepreneurs who joined the Group of Preman Super. The total is 44 people who are in Malang area. The analysis test tool used is SmartPLS Version 3 analysis with SEM (Structural Equation Model) analysis method, with inner and outer model method. After tabulating the data, and the results showed that the Financial management behavior of female MSMEs paguyuban Preman Super is still relatively low. This can be influenced by not understanding about financial concepts and financial products, low access to financial management knowledge. MSMEs owners still do not have the full willingness and responsibility for their financial condition. And as a woman as well as a mother, MSME entrepreneurs involve their feelings in making financial decisions of their business.