Financial literacy and economic uncertainty: impact on sme financial performance in cirebon regency
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Abstract
Economic uncertainty is a major challenge for Small and Medium Enterprises (SMEs) in maintaining financial stability and business sustainability. This study aims to analyze the impact of economic uncertainty on the financial performance of SMEs in Cirebon Regency and assess the role of financial literacy in moderating the relationship. A quantitative method was used in this study with a data collection technique through a questionnaire distributed to 100 SME owners. Data analysis was carried out using descriptive statistics and multiple linear regression with the help of SPSS software. The results show that economic uncertainty has a negative and significant effect on the financial performance of SMEs, with a regression coefficient value of -0.376 (p = 0.000). Meanwhile, financial literacy has a positive influence on the financial performance of SMEs, with a regression coefficient of 0.482 (p = 0.000). The regression model used explains the 37.5% variation in SME financial performance, which shows that other factors also contribute to SME financial performance. Thus, this study confirms that increasing financial literacy can be an effective mitigation strategy for SMEs in the face of economic uncertainty. The implications of this study lead to the importance of financial education for SME owners to improve their ability to manage their finances and anticipate unexpected economic changes. In addition, this study also provides recommendations for the government and financial institutions to develop training programs and access to more flexible financing for SMEs so that they are more resilient in facing economic challenges.
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How to Cite
Maulana, H., Yuniarto, R. F. . and Maiyaliza, M. (2025) “Financial literacy and economic uncertainty: impact on sme financial performance in cirebon regency”, Jurnal Mantik, 9(2), pp. 525-533. doi: 10.35335/mantik.v8i6.6468.
References
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Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on smes business performance in Indonesia. Journal of Entrepreneurship Education, 22(5), 200–208.
Isibor, N. J., Ibeh, A. I., Ewim, C. P. M., Sam-Bulya, N. J., & Martha, E. (2022). A financial control and performance management framework for SMEs: Strengthening budgeting, risk mitigation, and profitability. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 761-768.
Kumar, J., Rani, M., Rani, G., & Rani, V. (2024). What do individuals know, feel and do from a financial perspective? An empirical study on financial satisfaction. International Journal of Social Economics, 51(6), 771–785. https://doi.org/10.1108/IJSE-03-2023-0239
Laksono, R., Gultom, J. R., & Setyawan, I. (2023). Determinan Financial Technology (FinTech) dan Dampaknya Terhadap Perilaku Keuangan UMKM. Jurnal Ilmiah Universitas Batanghari Jambi, 23(3), 3490. https://doi.org/10.33087/jiubj.v23i3.4522
Lee, K. L., Romzi, P. N., Hanaysha, J. R., Alzoubi, H. M., & Alshurideh, M. (2022). Investigating the impact of benefits and challenges of IOT adoption on supply chain performance and organizational performance: An empirical study in Malaysia. Uncertain Supply Chain Management, 10(2), 537–550. https://doi.org/10.5267/j.uscm.2021.11.009
Ngwabebhoh, F. A., Saha, N., Nguyen, H. T., Brodnjak, U. V., Saha, T., Lengalova, A., & Saha, P. (2020). Preparation and characterization of nonwoven fibrous biocomposites for footwear components. In Polymers (Vol. 12, Issue 12, pp. 1–18). https://doi.org/10.3390/polym12123016
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Nurdiana, E., Septiani, T., & Ayu, P. P. (2023). Determinasi Faktor yang Memengaruhi Keputusan Manajemen dalam Berinvestasi Determination of Factors Influencing Management Decisions in Investing Laba Setelah pajak Jumlah saham yang beredar Rasio Solvabilitas perusahaan dibiayai oleh utang . rumus yang d. 6(2), 156–160.
Otokiti, B. O., Igwe, A. N., Ewim, C. P., Ibeh, A. I., & Sikhakhane-Nwokediegwu, Z. (2022). A framework for developing resilient business models for Nigerian SMEs in response to economic disruptions. Int J Multidiscip Res Growth Eval, 3(1), 647-659.
Prakash, N., Alagarsamy, S., & Hawaldar, A. (2022). Demographic characteristics influencing financial wellbeing: a multigroup analysis. Managerial Finance, 48(9–10), 1334–1351. https://doi.org/10.1108/MF-09-2021-0466
Rahmawati, A., Wahyuningsih, S. H., & Garad, A. (2023). The effect of financial literacy, training and locus of control on creative economic business performance. Social Sciences and Humanities Open, 8(1), 100721. https://doi.org/10.1016/j.ssaho.2023.100721
Rehman, S. U., Al-Shaikh, M., Washington, P. B., Lee, E., Song, Z., Abu-AlSondos, I. A., Shehadeh, M., & Allahham, M. (2023). FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs. Economies, 11(8). https://doi.org/10.3390/economies11080213
Sanusi, S., Hamid, N. A., Norizan, S., Urus, S. T., & Lestari, E. D. (2023). Determinants of business resilience framework for small businesses: Moderating effects of financial literacy. Review of Economics and Finance, 21, 55-65.
Septiani, T., & Puspita Ayu, P. (2024). Transformasi Keuangan UKM: Pelatihan Penyusunan Laporan Berbasis Aplikasi UMKM Financial Transformation: Training on Application-Based Reporting. JAMU: Jurnal Abdi Masyarakat UMUS, 5(01), 12–19.
She, L., Waheed, H., Lim, W. M., & E-Vahdati, S. (2023). Young adults’ financial well-being: current insights and future directions. International Journal of Bank Marketing, 41(2), 333–368. https://doi.org/10.1108/IJBM-04-2022-0147
Singh, D., & Malik, G. (2022). A systematic and bibliometric review of the financial well-being: advancements in the current status and future research agenda. International Journal of Bank Marketing, 40(7), 1575–1609. https://doi.org/10.1108/IJBM-06-2021-0238
Sridevi, K. B. (2021). Filling the quality gaps for a futuristic management education. Journal of Economic and Administrative Sciences, 37(4), 393–400. https://doi.org/10.1108/JEAS-09-2018-0097
Utami, N., & Sitanggang, M. L. (2021). Utami, N., & Sitanggang, M. L. (2021). The Effect of Fintech Implementation on The Performance of MSMEs. Journal of International Conference Proceedings, 4(3), 407–417. https://doi.org/10.32535/jicp.v4i3.1342. Journal of International Conference Proceedings, 4(3), 407–417. https://doi.org/10.32535/jicp.v4i3.1342
Uthaileang, W., & Kiattisin, S. (2023). Developing the capability of digital financial literacy in developing countries: A Case of online loan for small entrepreneurs. Heliyon, 9(12), e21961. https://doi.org/10.1016/j.heliyon.2023.e21961
Vebry Vetarany, Norma Fuji Andini, & Putri Puspita Ayu. (2024). Determination of Factors Influencing Dividend Policy: A Case Study of a Manufacturing Company in Indonesia. Asian Journal of Management, Entrepreneurship and Social Science, 4(02), 557–575. https://doi.org/10.63922/ajmesc.v4i02.769
Bahasa, P., Bagi, I., Pemahaman, P., Akuntansi, M., & Ayu, P. P. (2021). The Role of English for the Improvement of Accounting Students’ Understanding of Integrated Financial Reporting. Journal of Accounting and Finance, 1(02), 19–23.
Bashir, I., & Qureshi, I. H. (2023). Examining theories, mediators and moderators in financial well-being literature: a systematic review and future research agenda. Qualitative Research in Organizations and Management: An International Journal, 18(4), 265–290. https://doi.org/10.1108/QROM-04-2022-2314
BPS Kota Cirebon. (2022). Pertumbuhan Ekonomi Kota Cirebon Tahun 2021. Badan Pusat Statistika Kota Cirebon, N0. 03/03/(03), 6–7.
Deku, W. A., Wang, J., & Preko, A. K. (2024). Digital marketing and small and medium-sized enterprises’ business performance in emerging markets. Asia Pacific Journal of Innovation and Entrepreneurship, 18(3), 251–269. https://doi.org/10.1108/apjie-07-2022-0069
Donkor, J., Donkor, G. N. A., Kankam-Kwarteng, C., & Aidoo, E. (2018). Innovative capability, strategic goals and financial performance of SMEs in Ghana. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 238–254. https://doi.org/10.1108/apjie-10-2017-0033
Hakimah, Y., Pratama, I., Fitri, H., Ganatri, M., & Sulbahri, R. A. (2019). Impact of intrinsic corporate governance on financial performance of indonesian SMEs. International Journal of Innovation, Creativity and Change, 7(1), 32–51.
Herlinawati, E., Suryana, Ahman, E., & Machmud, A. (2019). The effect of entrepreneurial orientation on smes business performance in Indonesia. Journal of Entrepreneurship Education, 22(5), 200–208.
Isibor, N. J., Ibeh, A. I., Ewim, C. P. M., Sam-Bulya, N. J., & Martha, E. (2022). A financial control and performance management framework for SMEs: Strengthening budgeting, risk mitigation, and profitability. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 761-768.
Kumar, J., Rani, M., Rani, G., & Rani, V. (2024). What do individuals know, feel and do from a financial perspective? An empirical study on financial satisfaction. International Journal of Social Economics, 51(6), 771–785. https://doi.org/10.1108/IJSE-03-2023-0239
Laksono, R., Gultom, J. R., & Setyawan, I. (2023). Determinan Financial Technology (FinTech) dan Dampaknya Terhadap Perilaku Keuangan UMKM. Jurnal Ilmiah Universitas Batanghari Jambi, 23(3), 3490. https://doi.org/10.33087/jiubj.v23i3.4522
Lee, K. L., Romzi, P. N., Hanaysha, J. R., Alzoubi, H. M., & Alshurideh, M. (2022). Investigating the impact of benefits and challenges of IOT adoption on supply chain performance and organizational performance: An empirical study in Malaysia. Uncertain Supply Chain Management, 10(2), 537–550. https://doi.org/10.5267/j.uscm.2021.11.009
Ngwabebhoh, F. A., Saha, N., Nguyen, H. T., Brodnjak, U. V., Saha, T., Lengalova, A., & Saha, P. (2020). Preparation and characterization of nonwoven fibrous biocomposites for footwear components. In Polymers (Vol. 12, Issue 12, pp. 1–18). https://doi.org/10.3390/polym12123016
Novangelo, B., Adinata, M. F., Lestari, H. S., & ... (2022). Karakteristik Demografis Yang Mempengaruhi Kesejahteraan Finansial: Analisis Multi Kelompok Investor. JMBI UNSRAT (Jurnal …, 9(1), 243–255. https://ejournal.unsrat.ac.id/index.php/jmbi/article/view/39259%0Ahttps://ejournal.unsrat.ac.id/index.php/jmbi/article/download/39259/36791
Nurdiana, E., Septiani, T., & Ayu, P. P. (2023). Determinasi Faktor yang Memengaruhi Keputusan Manajemen dalam Berinvestasi Determination of Factors Influencing Management Decisions in Investing Laba Setelah pajak Jumlah saham yang beredar Rasio Solvabilitas perusahaan dibiayai oleh utang . rumus yang d. 6(2), 156–160.
Otokiti, B. O., Igwe, A. N., Ewim, C. P., Ibeh, A. I., & Sikhakhane-Nwokediegwu, Z. (2022). A framework for developing resilient business models for Nigerian SMEs in response to economic disruptions. Int J Multidiscip Res Growth Eval, 3(1), 647-659.
Prakash, N., Alagarsamy, S., & Hawaldar, A. (2022). Demographic characteristics influencing financial wellbeing: a multigroup analysis. Managerial Finance, 48(9–10), 1334–1351. https://doi.org/10.1108/MF-09-2021-0466
Rahmawati, A., Wahyuningsih, S. H., & Garad, A. (2023). The effect of financial literacy, training and locus of control on creative economic business performance. Social Sciences and Humanities Open, 8(1), 100721. https://doi.org/10.1016/j.ssaho.2023.100721
Rehman, S. U., Al-Shaikh, M., Washington, P. B., Lee, E., Song, Z., Abu-AlSondos, I. A., Shehadeh, M., & Allahham, M. (2023). FinTech Adoption in SMEs and Bank Credit Supplies: A Study on Manufacturing SMEs. Economies, 11(8). https://doi.org/10.3390/economies11080213
Sanusi, S., Hamid, N. A., Norizan, S., Urus, S. T., & Lestari, E. D. (2023). Determinants of business resilience framework for small businesses: Moderating effects of financial literacy. Review of Economics and Finance, 21, 55-65.
Septiani, T., & Puspita Ayu, P. (2024). Transformasi Keuangan UKM: Pelatihan Penyusunan Laporan Berbasis Aplikasi UMKM Financial Transformation: Training on Application-Based Reporting. JAMU: Jurnal Abdi Masyarakat UMUS, 5(01), 12–19.
She, L., Waheed, H., Lim, W. M., & E-Vahdati, S. (2023). Young adults’ financial well-being: current insights and future directions. International Journal of Bank Marketing, 41(2), 333–368. https://doi.org/10.1108/IJBM-04-2022-0147
Singh, D., & Malik, G. (2022). A systematic and bibliometric review of the financial well-being: advancements in the current status and future research agenda. International Journal of Bank Marketing, 40(7), 1575–1609. https://doi.org/10.1108/IJBM-06-2021-0238
Sridevi, K. B. (2021). Filling the quality gaps for a futuristic management education. Journal of Economic and Administrative Sciences, 37(4), 393–400. https://doi.org/10.1108/JEAS-09-2018-0097
Utami, N., & Sitanggang, M. L. (2021). Utami, N., & Sitanggang, M. L. (2021). The Effect of Fintech Implementation on The Performance of MSMEs. Journal of International Conference Proceedings, 4(3), 407–417. https://doi.org/10.32535/jicp.v4i3.1342. Journal of International Conference Proceedings, 4(3), 407–417. https://doi.org/10.32535/jicp.v4i3.1342
Uthaileang, W., & Kiattisin, S. (2023). Developing the capability of digital financial literacy in developing countries: A Case of online loan for small entrepreneurs. Heliyon, 9(12), e21961. https://doi.org/10.1016/j.heliyon.2023.e21961
Vebry Vetarany, Norma Fuji Andini, & Putri Puspita Ayu. (2024). Determination of Factors Influencing Dividend Policy: A Case Study of a Manufacturing Company in Indonesia. Asian Journal of Management, Entrepreneurship and Social Science, 4(02), 557–575. https://doi.org/10.63922/ajmesc.v4i02.769
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