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The Effect of Financial Literacy on MSMEs Performance in Indonesian Non-Agricultural Production Firms Ahmad Salim; Renny Friska
Jurnal Ilmiah Manajemen Kesatuan Vol. 14 No. 2 (2026): JIMKES Edisi March 2026
Publisher : LPPM Institut Bisnis dan Informatika Kesatuan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37641/jimkes.v14i2.5119

Abstract

MSMEs play a vital role in driving local economic growth in emerging markets. However, many still struggle with performance issues, particularly due to weaknesses in financial management. This study aims to examine the effect of financial literacy on the performance of non-agricultural MSMEs in Demak Regency, Indonesia. A quantitative survey approach was employed, using structured questionnaires distributed to 120 MSME owners selected through purposive sampling. The data were analyzed using simple linear regression. The findings indicate that financial literacy has a positive and significant impact on MSME performance, reflected in increased revenue, improved cost efficiency, higher profitability, and enhanced business sustainability. Improved financial decision-making, effective cash flow management, and better access to formal financial services contribute to this performance improvement. This study contributes to the literature on MSMEs in developing countries by highlighting the link between financial literacy, financial inclusion, and local economic resilience. The results provide practical implications for local governments and development stakeholders in designing inclusive and sustainable MSME empowerment programs aligned with the Sustainable Development Goals.
Transparency in Ensuring Governance and Accountability of Non-Profit Institutions: Lessons from Malaysia and India Tria Sasangka Putra; Bahrullah Akbar; Suwarno; Renny Friska; Dhanuskodi Rengasamy; Momin Noorjahan
Lex Publica Vol. 11 No. 1 (2024)
Publisher : APPTHI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58829/lp.11.1.2024.258

Abstract

This research examines the transparency and governance aspects of foundations in Indonesia as nonprofit organizations, and compares them with foundation regulations in several countries to gain insight into their legal structures, obligations, and social responsibilities. The study addresses three key questions: first, how foundations are structured within Indonesia's legal framework, focusing on governance; and second, a comparative analysis of how Malaysia and India regulate foundations, their responsibilities, and operational frameworks. The research also evaluates how foundations can improve their societal contributions while ensuring transparency and accountability. Using a qualitative approach with a normative and comparative design, the study analyzes Indonesia's regulatory framework under Law No. 28/2004 and compares it with international practices to identify best practices. The findings reveal that Indonesian foundations must uphold transparency and accountability, including the obligation to produce annual reports that are auditable and subject to strict oversight to prevent fund misuse. The conclusion highlights that while regulations differ across countries, all emphasize the importance of transparency and accountability to ensure foundations operate effectively and contribute positively to society. Adhering to these principles is essential for the sustainability of foundations and enhancing their social impact.