ABSTRACT

This study aimed to examine the ability of financial literacy to positively influence SMEs’ performance and sustainability in Indonesia. Data were obtained from individuals who understood and participated in the strategic development process of their companies. The data were analyzed using the partial least square model with structural equations used to test hypotheses. The results showed financial literacy from SMEs influences the performance and sustainability of businesses in Indonesia. Furthermore, the better the financial literacy of SME actors, the more competent they are in managing their business performance.