The Investment Opportunity, Information Technology and Financial Performance of SMEs

Abstract

Financial statements as a tool for show the company financial performance and can be used as a basis for making economic decisions. Understanding of accounting standards specifically for SMEs can help SMEs in making business decisions. Information technology support and investment opportunity in SMEs are important factors that can help improve the financial performance of SMEs. Investment opportunity can be seen from the development of market tastes and reflection on the development of SMEs businesses. Investment opportunity is also obtained by innovating in production and marketing. The development of the SMEs business is in line with increasing business age. This shows the ability to survive batik business in facing the times and business competition. This study examines the factors that influence the financial performance of SMEs. using a sample of batik craftsmen. Data analysis was performed using multiple regression program which are currently widely used by researchers to test the research model that they formulate. The result of this research were (1) for small and medium-sized enterprises (SMEs), the company's age and investments opportunity greatly affect the company's financial performance. (2) IT support and good financial management in small and medium enterprises (SMEs) do not affect the company's financial performance.

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