The Influence of Financial Literacy and Financial Inclusion on Financial Management Among MSMEs in South Tondano District

Abstract

This study examines the influence of financial literacy and financial inclusion on financial management among micro, small, and medium enterprises (MSMEs) in South Tondano District, Minahasa Regency, Indonesia. A quantitative causal-associative design was employed. The population comprised 2,216 culinary MSMEs, and 100 respondents were selected through purposive sampling based on the Cochran sample-size calculation. Primary data were collected using questionnaires and analyzed through multiple linear regression with IBM SPSS Statistics 25. The results show that financial literacy has a positive and statistically significant effect on MSME financial management (B = 0.588; β = 0.565; t = 9.035; p < 0.001). Financial inclusion also has a positive and significant effect (B = 0.442; β = 0.423; t = 6.769; p < 0.001). The adjusted coefficient of determination is 0.927, indicating that the two predictors jointly explain 92.7% of the variation in financial management in the estimated model. Financial literacy demonstrates the larger standardized coefficient and t-statistic, suggesting a stronger relative association in this sample. The findings underline the importance of strengthening business owners’ financial knowledge and their effective access to and use of formal financial services.