Digital Growth Brings New Opportunities and Risks for MSMEs
The rapid expansion of the digital economy has changed how small businesses manage payments, financing, operations, and customer relationships. Digital financial services can provide MSMEs with faster and more flexible access to capital, while technologies such as QRIS, e-wallets, mobile banking, and fintech platforms have become increasingly relevant to business activities.
However, the authors argue that digital access is only one part of the sustainability equation. Businesses must also have the financial knowledge to manage risks and the managerial ability to turn available resources into productive business decisions.
The study examines three interconnected areas: financial literacy, management skills, and digital capital access. Financial literacy covers capabilities such as cash flow management, financial recording, budgeting, debt control, and risk evaluation. Management skills include planning, organizing, decision-making, operational control, and performance evaluation. Digital capital access refers to technology-enabled opportunities to obtain financing and financial services.
Survey Covers 150 MSME Owners
Ahmad Syamil, Ericha Lisa Wibowo, and Wijil Nugroho collected data from 150 MSME owners using a quantitative survey approach. Participants were selected because they had been operating a business for at least one year, were involved in business decision-making, and had knowledge or experience with digital financial services.
The researchers used structured questionnaires to assess financial literacy, management skills, digital capital access, and business sustainability. The collected data were then analyzed statistically, including multiple linear regression, to determine how strongly each factor was associated with the sustainability of MSMEs.
The respondents represented different types of businesses. Women accounted for 54.7 percent of participants, while respondents aged 25–34 represented the largest age group at 38 percent. The culinary sector was the largest business category, accounting for 36 percent of respondents.
Among digital services, QRIS and e-wallets were the most widely used, with 44 percent of respondents reporting their use. Mobile banking followed at 26 percent, while fintech lending and marketplace financing were used by smaller proportions of respondents.
Management Skills Show the Strongest Influence
The central finding of the study is that all three factors had a positive and statistically significant relationship with business sustainability.
Financial literacy recorded a regression coefficient of 0.218, while digital capital access recorded 0.276. Management skills produced the highest coefficient at 0.392 and the highest standardized beta value at 0.421, making it the strongest factor among those examined.
The results suggest that MSME owners who are better able to plan, organize resources, make decisions, control operations, and evaluate business performance are more likely to maintain sustainable operations.
The researchers also found that the three factors collectively explained 66.5 percent of the variation in business sustainability. The remaining 33.5 percent was associated with other factors outside the research model, including product innovation, entrepreneurial orientation, government support, digital competence, market networks, and business competition.
Key Findings
- Financial literacy positively supports business sustainability.
- Management skills are the strongest contributor to sustainability among the three factors studied.
- Digital capital access positively supports MSME sustainability.
- Together, the three factors explain 66.5 percent of business sustainability variation.
The study highlights that financial knowledge alone may not be enough to keep a business sustainable. Access to financing can create opportunities, but management capability determines how effectively resources are used.
Financial Knowledge Must Be Turned into Business Action
According to the discussion presented by the authors, management skills help transform financial knowledge and capital access into practical business actions.
Ahmad Syamil of BINUS Business School, together with Ericha Lisa Wibowo of Universitas Cahaya Surya and Wijil Nugroho of Universitas Matana, found that business sustainability depends heavily on the ability of entrepreneurs to manage resources, implement decisions, control operations, and adapt to changes in the digital economy.
Their findings indicate that understanding financial records, cash management, and debt control should be supported by management discipline and effective decision-making. Digital financing may provide additional resources, but those resources must be allocated productively and managed responsibly.
The authors also noted that digital finance should not automatically be viewed as a guarantee of business sustainability. While technology can expand financing opportunities, inadequate financial control may create additional risks, including unsustainable debt.
Implications for MSMEs and Policymakers
The findings have practical implications for MSME owners, government institutions, financial service providers, fintech companies, and organizations that support entrepreneurship.
For MSME owners, the research suggests that improving access to capital should be accompanied by stronger financial and managerial capabilities. Business owners can benefit from improving financial recording, cash flow management, capital planning, operational control, and the evaluation of financing risks.
For policymakers and institutions supporting MSMEs, the study recommends integrated development programs rather than isolated interventions. Financial literacy training, management assistance, and education on the responsible use of digital financing can be combined to create stronger and more resilient businesses.
The authors emphasize that management skills deserve particular attention because they were identified as the most dominant factor in the study. Digital capital should support productivity and business growth rather than encourage risky or consumptive financing behavior.
A Broader View of MSME Sustainability
The research also recognizes several limitations. The study captured conditions at one point in time and used purposive sampling, meaning the findings may not represent every MSME population. In addition, the model focused on three main factors, while sustainability may also be influenced by innovation, entrepreneurial orientation, digital literacy, policy support, market conditions, and business networks.
Future research could use longer-term studies, larger respondent groups, broader geographic coverage, and mixed research methods that include in-depth interviews. Such approaches could provide a more comprehensive understanding of how MSMEs adapt to financial and technological change over time.
Author Profiles
Ahmad Syamil is the lead and corresponding author of the study and is affiliated with BINUS Business School. The article indicates his academic involvement in business and economic research related to MSMEs, financial inclusion, and digital business development. The source article does not provide his academic degree.
Ericha Lisa Wibowo is affiliated with Universitas Cahaya Surya and co-authored the study on financial literacy, management skills, digital capital access, and MSME sustainability. The source article does not provide her academic degree or an official detailed field of specialization.
Wijil Nugroho is affiliated with Universitas Matana and co-authored the research. The source article does not provide his academic degree or an official detailed field of specialization.
Source
Article Title: The Role of Financial Literacy, Management Skills, and Digital Capital Access in Enhancing Business Sustainability in the Digital Economy
Authors: Ahmad Syamil, Ericha Lisa Wibowo, and Wijil Nugroho
Journal: Formosa Journal of Science and Technology (FJST)
Publication Year: 2026
Volume: 5, Issue 8
Pages: 2281–2294
Official Journal URL: https://journalfjst.my.id/index.php/fjst
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