Strengthening Formal Credit Access and Performance through Financial Literacy and Credit Terms in Micro, Small and Medium Businesses

Maria Widyastuti · Deograsias Yoseph Yustinianus Ferdinand · Yustinus Budi Hermanto

47 citations0/0 files storedJournal of risk and financial management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Literacy and Behavior Banking stability, regulation, efficiency Microfinance and Financial Inclusion

Abstract

This study aims to test financial literacy and credit conditions in determining formal credit access to determine the performance of MSMEs. This research includes the type of associative research that is accompanied by hypothesis testing. This research was conducted on MSMEs of as many as 324 creative industry players in four cities in East Java (Mojokerto, Pasuruan, Gresik, and Sidoarjo) with a sample size of 100 actors who had accessed formal credit using the stratified random sampling method for data collection. The results of Smart PLS analysis show that financial literacy and credit terms directly and significantly affect access to formal credit and MSME performance; formal credit access directly and significantly affects MSME performance. Likewise, financial literacy and credit terms indirectly affect the performance of MSMEs. These results mean that financial literacy and credit terms have a strategic role in explaining why access to formal credit is growing and is attracting MSMEs to strengthen capital to improve performance.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 47 citations exist upstream.

References

2017How Ordinary Consumers Make Complex Economic Decisions: Financial Literacy and Retirement Readiness 2019How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective 2020Overconfidence heuristic-driven bias in investment decision-making and performance: mediating effects of risk perception and moderating effects of financial literacy 2020Assessing the Effect of Financial Literacy Among Managers on the Performance of Small-Scale Enterprises 2018Culture, financial literacy, and SME performance in Ghana 2019Effects of Financial Education and Financial Literacy on Creative Entrepreneurship: A Worldwide Research 2021The Effects of Financial Literacy on Sustainable Entrepreneurship 2022Fintech and Financial Health in Vietnam during the COVID-19 Pandemic: In-Depth Descriptive Analysis

Cited by

2024Understanding the role of financial literacy, entrepreneurial literacy, and digital economic literacy on entrepreneurial creativity and MSMEs success: a knowledge-based view perspective 2024MSME/SME Financial Literacy: A Systematic Literature Review and Bibliometric Analysis 2025Dynamic capabilities and financial behavior to accelerate MSME performance recovery and its impacts on business sustainability

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.