The Influence of Financial Literacy and Financial Self-Efficacy on the Financial Management Behavior of MSMEs Mediated by Financial Attitude; (A Study of MSMEs in Cibeber District, Cianjur Regency)

Abstract

This study aims to analyze the effect of financial literacy and financial self-efficacy on the financial management behavior of Micro, Small, and Medium Enterprises (MSMEs) in Cibeber District, Cianjur Regency, with financial attitude as a mediating variable. The study is motivated by the gap between the financial literacy index (66.46%) and the financial inclusion index (80.51%) of the Indonesian population based on the 2025 SNLIK survey, as well as the limited financial management practices among local MSME actors. This research used a quantitative method with a causal associative approach. A sample of 355 MSME actors was determined using the Slovin formula through a purposive sampling technique. Data were collected using a 5-point Likert-scale questionnaire and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS 3. The results show that financial literacy and financial self-efficacy have a positive and significant effect on both financial attitude and financial management behavior. Financial attitude also has a positive and significant effect on financial management behavior and significantly mediates the effect of financial literacy and financial self-efficacy on financial management behavior. This study recommends strengthening financial literacy education programs and practical mentoring for MSME actors to enhance financial self-efficacy and foster a positive financial attitude, thereby encouraging better and more sustainable financial management behavior.