Improving Msme's Performance Through Financial Literacy and Financial Inclusion Mediated By Risk-Taking Entrepreneurship

Yuli Nurhasanah

Abstract


Currently, the development of MSME's is increasing rapidly which results in a lot of competition between businesses. However, many businesses have experienced a decline in performance due to inaccessible sources of financing and inadequate financial knowledge. This indicates that the company's performance in using financial literacy and financial inclusion is still not optimal. Therefore, MSME's need to apply the courage of MSME players in taking risks, this is important to obtain good financial inclusion and is useful for increasing financial literacy so that it has an impact on improving the performance of MSME's. This study aims to determine the role of risk-taking entrepreneurship in mediating financial literacy and financial inclusion which is useful for improving performance in Micro, Small and Medium Enterprises (MSME's). The sample in this study was 124 MSME's in the culinary field in Kendari City and Kab. South Konawe. The data collection method in this study used a questionnaire. The data were analyzed using Smart PLS software. The results showed that there was a positive and significant influence on financial literacy and financial inclusion on risk taking entrepreneurship, while risk taking entrepreneurship had a positive and significant effect on the performance of MSME's. The performance of MSME's can also be improved through risk taking entrepreneurship which comes from financial literacy and financial inclusion.

Keywords: Financial Literacy; Financial Inclusion; Risk Taking Entrepreneurship; MSME performance.


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