Proceedings of the International Colloquium on Business and Economics (ICBE 2022)

<Previous Article In Volume
Next Article In Volume>

How Debt Literate and Financial Literacy Enhance Smes Performance: The Intervening Role of Financial Experience

Authors
Hadi Ismanto1, Silviana Pebruary1, *
1Universitas Islam Nahdlatul Ulama, Jepara, Indonesia
*Corresponding author. Email: silvy@unisnu.ac.id
Corresponding Author
Silviana Pebruary
Available Online 26 December 2022.
DOI
10.2991/978-94-6463-066-4_25How to use a DOI?
Keywords
Debt Literate; Financial Literacy; Financial Wellbeing; Financial Experience; SME performance
Abstract

This study aimed to analyze the effect of debt literate, financial literacy, and financial wellbeing on SMEs performance directly and through financial experience. This research was conducted by visiting SMEs managers in Central Java, Indonesia. The total sample was 475 respondents who had answered the questionnaire completely. The data was analyzed using the model structure to determine the direct and indirect effects. The results show that the financial literacy variable has a direct and indirect effect through financial experience on the SMEs performance. The debt literate variable does not have a direct effect on it, but it has an indirect effect through financial experience. In addition, financial well-being has no effect on the SMEs performance either directly or through moderation of financial experience. These empirical findings provide evidence that SMEs performance can be improved through financial literacy, debt literate, and financial experience. There needs to be an increase in financial literacy and financial experience for SMEs owners in order to be able to understand every financial phenomenon that can hamper SMEs performance improvement. Further research is required to investigate the predictability of debt and financial literacy in enhancing SME performance using a different sample from several settings.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 December 2022
ISBN
10.2991/978-94-6463-066-4_25
ISSN
2352-5428
DOI
10.2991/978-94-6463-066-4_25How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hadi Ismanto
AU  - Silviana Pebruary
PY  - 2022
DA  - 2022/12/26
TI  - How Debt Literate and Financial Literacy Enhance Smes Performance: The Intervening Role of Financial Experience
BT  - Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
PB  - Atlantis Press
SP  - 281
EP  - 295
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-066-4_25
DO  - 10.2991/978-94-6463-066-4_25
ID  - Ismanto2022
ER  -