Effects of Financial Literacy, Financial Access, and Financial Risk Attitudes on SME’s Sustainability in Wajo District, South Sulawesi, Indonesia
DOI:
https://doi.org/10.47747/snfmi.v3i1.3199Abstract
Financial literacy is a vital source of knowledge in making financial decisions in influencing SME sustainability. This study aims to analyze the direct and indirect effects of financial literacy, financial access, and financial risk attitudes on the sustainability of SMEs. This study uses a quantitative survey approach. Data obtained through questionnaires, observations, interviews, and documentation. The results of the study show that good financial literacy skills will facilitate SMEs in accessing finance and predicting business financial risks, being able to determine attitudes so that they have an impact on increasing the sustainability of SMEs. Furthermore, financial access literacy and financial risk attitudes of SMEs owners have a direct effect on increasing SME sustainability directly by 57.3%, and the indirect effect of financial literacy on SMEs sustainability through financial risk attitudes is 20.2%. This study recommends financial literacy based on the effectiveness and efficiency of utilizing access to capital from outside the company coupled with a reduction in the financial risks faced by SMEs. The formulation of economic development policies in order to encourage the sustainability of SMEs businesses in Wajo Regency, South Sulawesi, Indonesia.
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