Journal of Economics and Social Sciences
Vol. 4 No. 1 (2025): Journal of Economics and Social Sciences (JESS)

The Effect of Financial Literacy and Entrepreneurial Competence on The Performance of Micro, Small and Medium Enterprises (MSMES)

Sari, Rahayu Permata (Unknown)
Sudarma, Ade (Unknown)
Suherman, Acep (Unknown)



Article Info

Publish Date
27 Jun 2025

Abstract

This study aims to analyze the influence of financial literacy and entrepreneurial competence on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Sukaraja Market, Sukabumi Regency. The approach used is quantitative with descriptive and verifiable methods. The sample in this study amounted to 187 respondents who were selected using the purposive sampling technique. Data collection was carried out through questionnaires and interviews, while the data analysis technique used multiple linear regression preceded by tests of validity, reliability, and classical assumptions. The results of the study show that financial literacy has a positive and significant effect on the performance of MSMEs. This means that the higher the understanding of business actors in managing finances, the better their business performance. In addition, entrepreneurial competence also has a positive and significant effect on the performance of MSMEs, which reflects the importance of innovation, managerial, and decision-making skills in supporting business success. Simultaneously, these two variables explain 65% variation in MSME performance. These findings confirm that increasing financial literacy and entrepreneurial competence is a strategic factor in strengthening the competitiveness and sustainability of local MSMEs. This research provides practical implications for policymakers and business actors in designing MSME empowerment programs.

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Journal Info

Abbrev

jess

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Materials Science & Nanotechnology Social Sciences

Description

ournal of Economics and Social Sciences (JESS) is a peer-reviewed journal published twice a year (every June and December) by CV. Civiliza Publishing. Journal of Economics and Social Sciences (JESS) accepts original scientific papers that have never been published. The discussion in this journal ...