The Influence of Digital Financial Literacy and Financial Efficacy on the Financial Management Behavior of Micro-Entrepreneurs (International Journal of Education Vocational and Social Science)

Summary

• The study surveyed 150 micro-entrepreneurs in Pomalaa District, Kolaka Regency, using purposive sampling and SmartPLS 4.0.p.1
• The R-square for financial management behavior is 0.672.p.11
• Among financial applications used, 113 people used mobile banking and 11 used gopay.p.6
• Under Law No. 20 of 2008, a micro business has maximum net worth of Rp 50 million and maximum annual turnover of Rp 300 million.p.6

Key insights

1. Digital financial literacy is proven to have a positive and significant influence on the financial management behavior of micro-entrepreneurs.p.11
2. Financial efficacy also has a positive and significant influence on financial management behavior.p.11
3. Both hypotheses are accepted, with t statistics above the 1.64 threshold.p.1
4. Financial efficacy has the larger path coefficient of the two variables.p.11
5. Entrepreneurs with higher financial efficacy are more confident in budgeting, recording cash flow and making business financing decisions.p.5
6. Micro-enterprises often cannot separate personal and business finances and lack cash flow records.p.2
7. Greater digital financial literacy supports recording income and expenses, financial planning and cost control.p.12