The Role of Financial Literacy and Market Orientation in Increasing MSME Business Success in Indonesia

DOI

10.2991/978-94-6463-817-2_109How to use a DOI?

Keywords

Micro Small Medium Enterprises; Financial Literacy; Market Orientation; Business Success

Abstract

This study aims to analyse the influence of financial literacy and market orientation on the business success of MSMEs in Indonesia, particularly in food sector in Sukabumi. This study explores the importance of financial literacy and market orientastion as key factors in improving the performance and sustainability of micro, small and medium enterprises (MSMEs) that form the backbone of the local economy. Using quantitative method with multiple linear regression analysis, data was obtained through questionnaires distributed to 100 MSMEs. The results showed that financial literacy and market orientation had a positive and significant influence on MSMEs business success with a combined contribution of 73,5%. A strong market orientation allowed MSMEs to target customers more effectively, while adequate financial literacy supported better decision-making in financial management and business invesrment. These findings underscore the important role of financial literacy in creating more competitive and economically stable MSMEs. The originality of study lies in the in-depth analysis of the interaction between financial literacy and market orientation in the context of food sector MSMEs in Indonesia, which has not been widely discussed in previos literature. The implications of this study include the importance of collaboration between the government and MSMEs players to improve access to financial literacy training and the implementation of effective marketing strategies. This will help MSMEs strengthen their competitiveness, improve their financial management, and expand their market share. As such, MSMEs are expected to better adapt to market changes and economic challenges, contribute to the local economy, and support long-term business sustainability.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Leonita Siwiyanti
AU  - Suryana
AU  - Hari Mulyadi
AU  - Chairul Furqan
PY  - 2025
DA  - 2025/09/12
TI  - The Role of Financial Literacy and Market Orientation in Increasing MSME Business Success in Indonesia
BT  - Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)
PB  - Atlantis Press
SP  - 933
EP  - 937
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-817-2_109
DO  - 10.2991/978-94-6463-817-2_109
ID  - Siwiyanti2025
ER  -