THE INFLUENCE OF FINANCIAL LITERACY, ABILITY TO COMPILE FINANCIAL REPORTS, AND USE OF E-COMMERCE ON MSME PERFORMANCE

Abstract

This research aims to analyze (1) the influence of financial literacy on the performance of SMEs, (2) the influence of financial statement preparation skills on the performance of SMEs, and (3) the influence of e-commerce usage on the performance of SMEs. The study adopted quantitative research with a correlational approach. The research sample consisted of 137 SME entrepreneurs from Cangkringan District, Sleman Regency. The Researcher collected data using a questionnaire as the instrument for data collection. The collected data were analyzed using multiple linear regression analysis. The findings of this research revealed that (1) financial literacy had a positive and significant influence on the performance of SMEs, (2) financial statement preparation skills did not have a positive and significant influence on the performance of SMEs, and (3) e-commerce usage had a positive and significant influence on the performance of SMEs.