Enhancing MSME Competitiveness Through Financial Literacy and Digital Transformation in Indonesia
Main Article Content
Muhammad Ishlah Idrus
Rastina
Micro, Small, and Medium Enterprises (MSMEs) are a cornerstone of Indonesia's economy, contributing 60.5% to the national GDP and employing 97% of the workforce. However, MSMEs face challenges such as low financial literacy and limited adoption of digital technologies, which hinder their competitiveness in the global market. This study explores the synergistic role of financial literacy and digital transformation in enhancing MSME performance and competitiveness. Using a qualitative approach, data were collected through in-depth interviews, focus group discussions, and policy document analysis. The findings reveal that the average financial literacy level among MSME actors in Indonesia is only 38%, leading to poor financial management and limited access to formal financing. On the other hand, only 16% of MSMEs have integrated digital technologies into their operations, with those who did reporting significant improvements in efficiency and revenue. The integration of financial literacy with digital tools was found to have a multiplier effect, enabling better resource management, improved decision-making, and enhanced market competitiveness. This study highlights the importance of targeted policies to combine financial literacy training with digital technology adoption. By addressing challenges such as infrastructure limitations and resistance to change, stakeholders can foster inclusive economic growth and empower MSMEs to thrive in the digital economy.
Asosiasi Usaha Mikro, Kecil, dan Menengah Indonesia (Akumindo). (2023). "Laporan Perkembangan Digitalisasi UMKM 2023." Jakarta: Akumindo.
Bazeley, P., & Jackson, K. (2013). Qualitative Data Analysis with NVivo. Sage Publications.
Braun, V., & Clarke, V. (2006). "Using Thematic Analysis in Psychology." Qualitative Research in Psychology, 3(2), 77-101.
Cole, S., Sampson, T., & Zia, B. (2015). "Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?" Journal of Finance, 70(2), 83-94.
Creswell, J. W. (2013). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (3rd ed.). Sage Publications.
Denzin, N. K. (1978). The Research Act: A Theoretical Introduction to Sociological Methods. McGraw-Hill.
Eze, S. C., Chinedu-Eze, V. C., & Bello, A. O. (2020). "The Utilization of E-Business Technologies in SMEs: A Study of the Impact of Organizational Culture and Structure." Journal of Small Business and Enterprise Development, 27(4), 521-548.
Fatoki, O. (2018). "The Impact of Financial Literacy on the Performance of Small and Medium Enterprises in South Africa." Mediterranean Journal of Social Sciences, 9(3), 83-93.
Gupta, P., Kumar, D., & Tiwari, R. (2019). "Digital Transformation of SMEs: Barriers and Challenges in the Context of Emerging Economies." Procedia Computer Science, 151, 47-52.
Hidayat, R., & Nurdin, M. (2021). "Adopsi Teknologi Digital pada UMKM: Faktor Pendorong dan Penghambat." Jurnal Pengembangan Ekonomi, 12(1), 50-64.
Kementerian Koperasi dan UKM. (2023). "Laporan Tahunan UMKM 2023." Jakarta: Kementerian Koperasi dan UKM.
Kurniawan, B., Pratama, F., & Dewi, R. (2022). "Pemanfaatan Teknologi Digital untuk Peningkatan Daya Saing UMKM di Era Revolusi Industri 4.0." Jurnal Ekonomi dan Bisnis Digital, 5(3), 112-125.
Lusardi, A., & Mitchell, O. S. (2014). "The Economic Importance of Financial Literacy: Theory and Evidence." Journal of Economic Literature, 52(1), 5-44.
McKinsey. (2022). "The Future of Small Businesses in Emerging Markets: Insights and Recommendations." McKinsey Global Institute Report.
Morgan, D. L. (1997). Focus Groups as Qualitative Research (2nd ed.). Sage Publications.
Nasution, R., Siregar, H., & Wibowo, T. (2020). "Infrastructure and Digital Readiness of SMEs in Indonesia." Jurnal Teknologi dan Bisnis Digital, 9(2), 123-134.
Otoritas Jasa Keuangan (OJK). (2021). "Survei Literasi Keuangan Indonesia 2021." Jakarta: OJK.
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). "Purposeful Sampling for Qualitative Data Collection and Analysis in Mixed Method Implementation Research." Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533-544.
Patton, M. Q. (2002). Qualitative Research & Evaluation Methods (3rd ed.). Sage Publications.
Saputra, A. P., & Wirawan, F. (2022). "Strategi Literasi Keuangan untuk Penguatan Ketahanan UMKM di Indonesia." Jurnal Manajemen dan Keuangan, 15(1), 45-58.
Tambunan, T. (2019). "Development of Micro, Small and Medium Enterprises in Indonesia." Journal of Developing Economies, 24(1), 1-20.
