The Effect of Financial Inclusion, Financial Literacy and Financial Technology on Business Performance in MSMEs in Badung Regency

Abstract

This study aims to examine the effect of financial inclusion, financial literacy, and financial technology on business performance. The sample in this study consists of individuals working in SMEs in Badung Regency, with a total of 100 respondents used as the sample. The data analysis techniques employed include convergent validity, discriminant validity, composite reliability, R-square, F-square, and hypothesis testing. The research results show that financial inclusion has a negative and significant effect on business performance, financial literacy has a positive and significant effect on business performance, and financial technology has a positive and significant effect on business performance. The suggestions that can be given by the researcher are that MSMEs in Badung Regency should always take advantage of the financial services provided by banks properly to support business performance, regularly attend entrepreneurship seminars to improve financial literacy, and make good use of financial technology.