Malang — The long-term sustainability of Micro, Small, and Medium Enterprises (MSMEs) heavily relies on adapting to modern financial management and embracing digital technology. Three researchers from the Malangkucecwara College of Economics—Mohamad Soedarman, Diana Nada Hartatik, and Lailatus Sa'adah—conducted an in-depth study in 2026 to measure the driving factors behind the operational resilience of local businesses. The results of this scientific investigation reveal that integrating basic accounting knowledge, sound financial management skills, and social media optimization simultaneously yields a positive and significant impact on maintaining long-term business continuity.
The MSME sector serves as the primary engine driving Indonesia's economic development, contributing significantly to job creation and income equality. Nationally, this sector maintains a steady annual growth rate of 4.2 percent, with its collective contribution to the Gross Domestic Product (GDP) exceeding 50 percent. However, businesses in the field frequently encounter classic hurdles, ranging from capital constraints, a shortage of skilled personnel, and ineffective marketing approaches to a lack of formal business management training. Through a research focus on the business ecosystem in Wonokitri Village, the research team confirmed that these structural weaknesses can be massively overcome if business owners enhance their operational expertise and adopt digital information systems.
A solid grasp of accounting principles forms the essential foundation for a company's internal health. Business owners who master simple transaction recording can generate accurate financial reports, monitor operational costs, and calculate real profit or loss without speculation. These well-organized financial data automatically become the basis for making sound strategic business decisions, such as identifying the most profitable products, managing cash flow effectively, or determining the right time to restock inventory.
Equally critical is the level of financial literacy among business operators. Strong financial literacy is reflected in the owner's discipline to maintain a clear separation between personal funds for family needs and business cash for operational growth. Furthermore, a deep understanding of investment management, savings, and healthy loan schemes makes entrepreneurs more resilient in mitigating liquidity risks during market downturns, while making it much easier for them to access external financing from formal banking institutions.
In the era of digital transformation, product marketing has shifted toward virtual platforms. Utilizing social media networks like Instagram serves as a highly powerful, low-cost promotional tool that effectively breaks down geographical boundaries. Through real-time, two-way interactions on social networks, businesses can build close emotional relationships with customers, gather instant feedback, and significantly boost brand visibility to increase weekly sales volumes.
The data collection methodology for this descriptive quantitative study involved the entire population of MSME operators in Wonokitri Village, totaling 93 respondents. The sampling technique utilized a saturated sampling method, where all members of the population were designated as active research participants through the distribution of structured questionnaires measured on a Likert scale. The gathered primary data were then computationally processed using multiple linear regression analysis to evaluate both the partial and simultaneous effects of the independent variables on the dependent variable.
Based on the statistical analysis, the study discovered that the combined contribution of accounting understanding, financial literacy, and social media utilization exerts a dominant 87.3 percent influence on MSME business sustainability, while the remaining percentage is driven by external factors outside the research model. Partial evaluation via the t-test proves that social media utilization yields the highest significance value in driving market expansion, followed by financial literacy capacity, and the technical skill of accounting record-keeping. The integration of these three aspects is proven to make business owners more prepared for economic dynamics and less vulnerable to bankruptcy when facing sudden spikes in raw material prices from suppliers.
The real-world impact of these scientific findings offers a strong recommendation for policymakers, cooperative agencies, and academic institutions to continuously promote structured financial literacy programs and digital marketing workshops for micro-business communities. Backed by healthy internal management and aggressive digital communication strategies, MSMEs will not only withstand fierce competition but will also possess a high probability of scaling up and expanding their business operations sustainably.
Researcher Profiles
- Mohamad Soedarman – STIE Malangkucecwara
- Diana Nada Hartatik – STIE Malangkucecwara
- Lailatus Sa'adah – STIE Malangkucecwara
Research Sources
Article Title: The Influence of Accounting Understanding, Financial Literacy, and Social Media Utilization on the Sustainability of MSMES
Journal Name: International Journal of Scientific Multidisciplinary Research (IJSMR), Vol. 4, No. 5, 2026: 677-690DOI:
Official URL:
0 Komentar