Title: The implications of financial literacy rate on the company profitability of MSMEs in Bandung

Authors: Raden Aswin Rahadi; Nicholas King King Herijanto; Dwi Rahmawati; Sudarso Kaderi Wiryono; Aria Bayu Pangestu; Asep Darmansyah; Kurnia Fajar Afgani

Addresses: School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung, 40132 – West Java, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung, 40132 – West Java, Indonesia ' Sekolah Tinggi Ilmu Ekonomi Ekuitas Bandung, Jl. PH.H. Mustofa No.31, Neglasari, Kec. Cibeunying Kaler, 40124 – West Java, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung, 40132 – West Java, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung, 40132 – West Java, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung, 40132 – West Java, Indonesia ' School of Business and Management, Institut Teknologi Bandung, Jl. Ganesha No. 10 Bandung, 40132 – West Java, Indonesia

Abstract: The value of MSMEs can be seen from their contribution to the national economy. More than 99% of Indonesia's current business units are MSMEs, contributing about 61% of GDP and providing all 97% of all jobs (Damuri, 2020). The research is conducted using the OECD framework (2018) to determine the financial literacy rate implications on MSMEs' company profitability. As many as 205 MSMEs owners in Bandung were asked through questionnaires during March 2020 to April 2020. The findings subsequently indicated that the financial literacy rate of MSMEs in Bandung is moderate, with the total cumulative score of 67.9%.

Keywords: financial literacy; company profitability; MSMEs; new economic sources; demography; socio-economic.

DOI: 10.1504/IJEPEE.2023.136311

International Journal of Economic Policy in Emerging Economies, 2023 Vol.18 No.3/4, pp.344 - 355

Received: 27 Oct 2020
Accepted: 09 Mar 2021
Published online: 30 Jan 2024 *

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