The purpose of this study was to determine the effect of financial literacy on financial performance in fruit chip SMEs in Bumiaji District. The research design used in this study is quantitative with a descriptive approach. The population in this study was 30 apple chip SMEs in Batu City. The sampling technique used saturated sampling because the population was small, so all of them were sampled. The instrument used was a questionnaire. Data analysis used simple linear regression. Hypothesis testing used a partial t-test. The results of simple linear regression showed that the financial literacy variable had a positive regression coefficient value and a positive determination coefficient value. R Square of 0.568, which means that the contribution of the influence of the variable financial literacy on financial performance Fruit Chips UKM in Bumiaji District of 56.8%. The results of the partial t-test hypothesis testing showed that the financial literacy variable (X) had a t-value of 56.8%. count > t table (3.376 > 2.048) with a significance value of 0.002 (p value< 0.05), so it can be concluded that the hypothesis H1accepted and rejected H0, namely financial literacy has a significant influence on financial performance Fruit Chips UKM in Bumiaji District. Fruit Chips SMEs in Bumiaji District, Batu City are advised to continue improving their financial literacy levels through training, mentoring, and utilizing financial education programs organized by relevant institutions.
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