THE EFFECT OF FINANCIAL INCLUSION AND FINANCIAL LITERACY ON THE PERFORMANCE OF BATIK UMKM IN PURBALINGGA REGENCY

Abstract

ABSTRACT

Business performance is an exposure of an achievement of the order of work activities, in order to realize the planned target business objectives. This study aims to empirically examine the effect of financial inclusion and financial literacy on the performance of Batik MSMEs in Purbalingga Regency. This type of research uses quantitative research. The population of this study were Batik MSME players in Purbalingga Regency. Sampling using purposive sampling. The sample of this study was 58 Purbalingga Batik MSME players who are members of the Purbalingga Batik Craftsmen Forum (FPBP). The test data were analyzed using SPSS version 25. The test selection was carried out by multiple linear analysis. In the R2 test, the independent variables were able to influence the dependent variable of MSME performance by 15.5%, while the remaining 84.5% was influenced by other variables outside this study. In the t statistical test results, the financial inclusion variable and the financial literacy variable partially had no effect on the performance of Batik Purbalingga MSMEs. The results of the F test indicate that financial inclusion and financial literacy simultaneously affect the dependent variable of MSME performance.