The Role of Financial Literacy In Moderating The Effect of Profitability, Business Growth, and Financial Access on Msme Funding Decisions In The Food And Beverage Sector In Sambas Regency

Habbija Vichandra (Universitas Muhammadiyah Pontianak, Indonesia)
Heni Safitri (Universitas Muhammadiyah Pontianak, Indonesia)
Dedi Hariyanto (Universitas Muhammadiyah Pontianak, Indonesia)

ARMADA : Jurnal Penelitian Multidisiplin
Vol. 4 No. 9 (2026): ARMADA : Jurnal Penelitian Multidisplin, September 2026

This study aims to analyse the effects of profitability, business growth, financial access, and financial literacy on funding decisions among small-scale food and beverage MSMEs in Sambas Regency, while examining the moderating role of financial literacy. A quantitative associative approach was employed involving 100 MSMEs selected through proportional stratified random sampling. Data were collected using questionnaires and analysed using Partial Least Squares–Structural Equation Modelling (PLS-SEM). The results indicate that profitability and financial literacy have positive and significant effects on funding decisions, whereas financial access has a negative and significant effect. Business growth does not significantly influence funding decisions. Furthermore, financial literacy does not significantly moderate the relationships between profitability, business growth, financial access, and funding decisions. The structural model explains 66.8% of the variance in funding decisions (R² = 0.668). These findings demonstrate that funding decisions among MSMEs are primarily influenced by direct factors, particularly profitability, financial access, and financial literacy. Strengthening financial literacy and improving access to suitable financial services are important to support more informed and effective funding decisions among MSMEs.