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Impact of Financial Literacy and Education on SME Sustainability in Dili Timor-Leste with Financial Behavior

2023-05-20
Published
21-31
Pages
OPEN
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HM
Herlina Pereira Magno
Universitas Hayam Wuruk Perbanas, Surabaya
WL
Wiwik Lestari
Universitas Hayam Wuruk Perbanas, Surabaya, Indonesia
Abstract

Purpose: This study aims to determine the impact of financial literacy and education on SME’s business sustainability of SMEs in Dili, Timor-Leste, and to test the role of financial behavior as an intervening variable.

Research Methodology: This research uses a quantitative approach and questionnaires to measure the responses of SME owners’ financial literacy, education, financial behavior, and the sustainability of their businesses. There were 71 respondents, and the data were analyzed using partial least squares (PLS).

Results: The results show that financial literacy does not directly affect business sustainability; rather, it must be through financial behavior. Both direct and indirect education do not affect business sustainability.

Conclusions: Financial literacy does not directly affect SME sustainability but influences it through financial behavior, while education level has no direct or indirect effect.

Limitations: This study is limited to 71 SME entrepreneurs in Dili, Timor-Leste, and only examines financial literacy, education level, and financial behavior.

Contributions: This study highlights the mediating role of financial behavior and provides practical insights for improving SME sustainability through financial management training and mentoring.

       
Business Sustainability Financial Behavior Financial Literacy Level of Education
How to Cite
Magno, H. P. ., & Lestari, W. . (2023). Impact of Financial Literacy and Education on SME Sustainability in Dili Timor-Leste with Financial Behavior. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 3(1), 21-31. https://doi.org/10.52909/jbemk.v4i2.177
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How to Cite

Magno, H. P. ., & Lestari, W. . (2023). Impact of Financial Literacy and Education on SME Sustainability in Dili Timor-Leste with Financial Behavior. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 3(1), 21-31. https://doi.org/10.52909/jbemk.v4i2.177
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