The Influence of Financial Literacy, Financial Behavior, Utilization of Social Media, and Financial Technology on the Financial Performance of MSMEs

Abstract

This study aims to determine the effect of Financial Literacy, Financial Behavior, Utilization of Social Media, and Financial Technology on the financial performance of MSMEs in the food and beverage sector in Lamongan Regency. This study uses a quantitative approach with a sample of 96 MSME respondents in Lamongan Regency. In this study, the data sources used in data collection include primary data collected through questionnaires and analyzed using Multiple Linear Regression analysis. The instrument used in this study uses the Likert Scale method. Based on the results of the data study using statistical calculations through the application of the statistical program for social sciences (SPSS) version 24. The results of this study are that there is a significant positive influence between the variables of financial literacy, financial behavior, utilization of social media, and Financial Technology on the financial performance of MSMEs in the food and beverage sector in Lamongan Regency. This finding confirms that increasing financial literacy and good financial behavior, as well as optimizing the use of social media and financial technology, can help MSMEs improve their financial performance. Therefore, MSME actors are advised to be more active in improving financial understanding and utilizing digital technology in their business operations