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Purwokerto— Digital Financial Literacy Boosts MSME Performance, Study Reveals Real Impact on Indonesian Small Businesses. Research conducted by Danang Aryanto1* , Totok Haryanto2* , M.Agung Miftahuddin3, Hermin Endratno4 was published in January 2026 in the International Journal of Business and Applied Economics (IJBAE).

The study conducted by Danang Aryanto1* , Totok Haryanto2* , M.Agung Miftahuddin3, Hermin Endratno4 analyzed MSME players in the 2023–2024 period. The study shows that business owners who understand the use of digital financial services—such as mobile banking, digital wallets, and financial management applications—record better business growth and financial stability. These results are relevant amid the acceleration of national digital transformation, while MSMEs remain the backbone of the Indonesian economy.

Digital financial literacy refers to the ability to understand and use digital financial services effectively and safely. It covers knowledge of online transactions, financial planning applications, digital credit systems, and awareness of cybersecurity risks. For MSMEs, these skills influence not only daily operations but also strategic decisions such as investment, pricing, and expansion.

How the Study Was Conducted

The researchers used a quantitative survey approach involving MSME actors who actively operate their businesses and use digital platforms. Data were collected through structured questionnaires that measured levels of digital financial literacy and business performance indicators such as revenue growth, operational efficiency, and market reach.

The analysis applied statistical modeling to examine the relationship between digital financial knowledge and MSME performance outcomes. The model showed strong explanatory power, indicating that digital literacy variables meaningfully predict differences in business performance among respondents.

Key Findings

The study highlights several major points:

1. Digital financial literacy has a significant positive effect on MSME performance.
Business owners who understand digital finance tools manage cash flow better, track expenses accurately, and make faster financial decisions. This leads to improved profitability and business resilience.

2. Technology adoption strengthens competitiveness.
Entrepreneurs who integrate digital payments and financial applications can serve customers more efficiently and expand to online markets, increasing sales opportunities beyond local boundaries.

3. Financial decision-making becomes more data-driven.
Digitally literate MSME actors rely less on intuition and more on recorded financial data, improving planning accuracy and reducing business risk.

4. Barriers remain in digital skills and access.
Some MSME owners still face challenges such as limited digital skills, concerns about data security, and uneven internet access, which slow broader adoption of digital financial tools.

Implications for Society and Policy

The findings underline the need for large-scale digital financial education programs targeting MSME owners. Training in digital bookkeeping, online payment systems, and cybersecurity can directly enhance business sustainability. Government agencies, financial institutions, and universities can collaborate to design accessible literacy programs.

For policymakers, the research supports continued investment in digital infrastructure and financial inclusion initiatives. Expanding internet access and ensuring secure digital ecosystems will help smaller businesses participate fully in the digital economy.

For the business sector, fintech companies and banks can tailor user-friendly platforms and provide guidance to MSMEs unfamiliar with digital finance. Simplified tools combined with education can accelerate adoption.

The researchers note that strengthening digital financial skills not only improves individual business performance but also contributes to broader economic resilience. MSMEs that manage finances digitally are better prepared to withstand economic shocks and market fluctuations.

Researcher Profiles

Danang Aryanto – Universitas Muhammadiyah Purwokerto
Totok Haryanto - Universitas Muhammadiyah Purwokerto
M.Agung Miftahuddin - Universitas Muhammadiyah Purwokerto
Hermin Endratno - Universitas Muhammadiyah Purwokerto

Research Source

Danang Aryanto, Totok Haryanto , M.Agung Miftahuddin, Hermin Endratno Digital Financial Literacy and MSME Performance in the Digital Economy Era. International Journal of Business and Applied Economics (IJBAE), Vol. 5 No. 1, 2026.

DOI : https://doi.org/10.55927/ijbae.v5i1.551

URL resmi: https://nblformosapublisher.org/index.php/ijbae