Title: Fintech, financial literacy, and financial inclusion in Indonesian SMEs

Authors: Mutamimah Mutamimah; Maya Indriastuti

Addresses: Department of Management, Faculty of Economics, Universitas Islam Sultan Agung (UNISSULA), Indonesia ' Department of Accounting, Faculty of Economics, Universitas Islam Sultan Agung (UNISSULA), Indonesia

Abstract: This study examines the effect of fintech and financial inclusion moderated by financial literacy in improving the financial performance and business growth of SMEs in Indonesia. The purposive sampling technique was used to obtain data from 202 SMEs in Indonesia, statistically analysed using descriptive and multiple regression analyses. The results showed that financial literacy could moderate the effect of fintech on financial inclusion. Furthermore, fintech cannot improve financial performance, despite being moderated by financial literacy. Meanwhile, financial inclusion can improve financial performance, and subsequently, financial performance increases the business growth of SMEs. Implications of this study are that SMEs must improve financial literacy, and the government needs to improve regulations on financial literacy, fintech, and financial inclusion, especially for SMEs.

Keywords: fintech; financial inclusion; financial literacy; financial performance; business growth.

DOI: 10.1504/IJEIM.2023.129331

International Journal of Entrepreneurship and Innovation Management, 2023 Vol.27 No.1/2, pp.137 - 150

Received: 31 May 2021
Received in revised form: 27 Sep 2022
Accepted: 03 Oct 2022
Published online: 06 Mar 2023 *