THE EFFECT OF FINANCIAL LITERACY ON PEANUT-ROASTED FINANCIAL PERFORMANCE SME’s IN KAWANGKOAN PENGARUH LITERASI KEUANGAN TERHADAP KINERJA KEUANGAN UKM KACANG SANGRAI DI KAWANGKOAN

Abstract

This study examines the influence of financial literacy on the financial performance of small and medium enterprises (SMEs) of roasted beans in Kawangkoan. Specifically, this study analyzes how aspects of financial literacy—such as budgeting, cash flow management, and financial decision-making—correlate with profitability, operational efficiency, and how well and growing the roasted bean business in Kawangkoan is. By observing growth in: (1) Sales – such as selling more roasted beans, (2) Capital – such as increased business value, (3) Labor – such as making better use of the workforce or having more labor, (4) Markets – such as selling in more places or to more people, (5) Profit – such as making more money from selling baked beans. The results aim to guide roasted bean SMEs in improving financial management practices to improve financial performance, so that the business will grow and become better. These results can also help other parties who support businesses like this.

Keywords: Financial Literacy, Baked Beans, Financial Performance, SME’s, Kawang Beans