The Influence of Financial Literacy on the Financial Management of Culinary Micro, Small, and Medium Enterprises (MSMEs) in Ujung Batu District

Abstract

This study aims to determine the influence of financial literacy on the financial management of culinary micro-enterprises in the food and beverage sector in Ujung Batu District. A quantitative approach was employed, with data collected through a questionnaire distributed to a sample of 89 MSME owners, determined using purposive sampling and the Slovin formula from a population of 801 registered culinary micro-enterprises. Data were analyzed using simple linear regression, following validity, reliability, and normality tests, together with a t-test and coefficient of determination (R²) test. The regression analysis produced the equation Y = 21.643 + 0.458X. The t-test showed that financial literacy has a positive and significant effect on financial management (t = 8.174; p = 0.001), with an Adjusted R² of 0.528, indicating that financial literacy explains 52.8% of the variance in financial management, while the remaining 47.2% is explained by factors outside the model. These findings indicate that stronger financial literacy among culinary MSME owners in Ujung Batu District is associated with more accurate financial record-keeping and reporting, with practical implications for supporting healthier and more sustainable micro-enterprise growth through targeted financial education.