How Financial Knowledge, Experience, and Attitude Shape Financial Behavior of Micro, Small, and Medium Enterprises’ Owners in Pekanbaru?
Keywords:
financial behavior, financial knowledge, financial experience, financial attitude, MSMEAbstract
Research purposes
This study aims to analyze how financial knowledge, experience, and attitudes influence the financial behavior of micro, small, and medium enterprise owners (MSME owners) in the food and beverage sector in Pekanbaru City. Given the importance of good financial management for the sustainability of small businesses, this study seeks to explain the factors that encourage wise financial behavior.
Design/Methodology/Approach:
This study uses a quantitative approach using a survey method. Data was collected through questionnaires, which were distributed online to 239 food and beverage MSME owners in Pekanbaru. Data analysis was carried out using SPSS and SmartPLS 4 with the Structural Equation Modeling (SEM-PLS) approach.
Research findings:
The results of the study show that financial knowledge, experience, and attitudes have a positive and significant effect on the financial behavior of MSME actors. This confirms that good financial literacy and attitudes are important for making healthy financial decisions.
Theoretical Contribution/Originality:
This study expands the study of MSME owners’ financial behavior by integrating three main psychological variables (knowledge, experience, and attitude). This finding strengthens the study using the Theory of Planned Behavior and provides a new empirical basis in the context of food and beverage MSMEs in developing areas.
Practical/Policy/Social Implications:
These findings can be used by the government, financial institutions, and industry players to design financial literacy and training programs for MSMEs so that they are able to make wise financial decisions and avoid financial risks.
Research Limitations/Implications:
This study is limited to MSME actors in the food and beverage sector in Pekanbaru, so it does not cover all sectors or regions. Further research is expected to cover other MSME sectors and consider external factors such as technology support and access to financing.
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