The Influence of Financial Literacy on the Business Performance of Gold and Silver Jewelry Micro-Businesses with Financial Technology (Fintech) as a Mediating Variable in Mataram City (JPIM: Jurnal Penelitian Ilmiah Multidisipliner)

Summary

• The research surveyed 100 respondents consisting of owners or financial managers of gold and silver jewelry micro-businesses in Mataram City.p.4
• Financial literacy has a direct positive and significant impact on business performance with a path coefficient of 0.531.p.8
• Financial literacy strongly influences financial technology adoption with a path coefficient of 0.772.p.8
• Financial technology adoption significantly enhances business performance with a path coefficient of 0.282.p.8
• Financial technology serves as a mediating variable between financial literacy and business performance with an indirect path coefficient of 0.218.p.8
• The structural model accounts for an R-Square value of 0.593 for business performance, meaning 59.3% of its variance is explained by the model.p.7
• Financial literacy accounts for an R-Square value of 0.596 for financial technology, explaining 59.6% of its variance.p.7

Key insights

1. Financial literacy directly improves business performance with a T-statistic of 5.027.p.8
2. Financial literacy is a major driver of fintech adoption, exhibiting a high effect size (f²) of 1.477.p.7
3. Fintech adoption directly contributes to business performance with a T-statistic of 2.696.p.8
4. Fintech effectively mediates the relationship between financial literacy and micro-business performance with a T-statistic of 2.649.p.8
5. Financial literacy accounts for 59.6% of the variance observed in financial technology utilization among jewelry micro-enterprises.p.7
6. Combined financial literacy and fintech usage account for 59.3% of the variance in micro-business performance.p.7