The impact of growth and development of MSMEs can affect performance. This research aims to investigate the influence of financial literacy and financial management on the performance of Micro, Small and Medium Enterprises (MSMEs) with a sample of 85 MSMEs in Tanjung Redeb City. The validity method used is Confirmatory Factor Analysis (CFA), while multiple regression analysis using Stata is used to test the research hypothesis. The research results show that financial literacy has a positive influence on MSME performance, while financial management does not support the hypothesis. The contribution of this research lies in an in-depth understanding of the factors that influence MSME performance, especially in the context of financial literacy and financial management. Practically, this research provides valuable insight for MSMEs and related parties to increase financial literacy in an effort to improve business performance. In addition, the findings of this research highlight the need for special attention in developing more effective financial management strategies for MSMEs so that they can have a significant positive impact on business growth and sustainability.
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