The Influence of Financial Literacy and Financial Inclusion on the Sustainability of MSMEs in Kudus Regency

Dzulqornain Nasyrudin; Bonnix Hedy Maulana; Sukma Wijayanti

doi:10.31004/riggs.v5i2.8911

Authors

Dzulqornain Nasyrudin Muhammadiyah University of Kudus
Bonnix Hedy Maulana Muhammadiyah University of Kudus
Sukma Wijayanti Muhammadiyah University of Kudus

DOI:

https://doi.org/10.31004/riggs.v5i2.8911

Keywords:

Financial Literacy, Financial Inclusion, MSME Sustainability, Culinary MSME

Abstract

This study aims to analyze the influence of financial literacy and financial inclusion on the business sustainability of Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector in Kudus Regency. MSMEs play an important role in regional economic development, employment creation, and income distribution; however, many culinary MSMEs continue to face challenges related to financial management, limited access to formal financial services, and long-term business sustainability. This study employed a quantitative approach using a descriptive correlational design with a cross-sectional method. A total of 115 respondents were selected through probability sampling techniques to ensure representative data. Data collection was conducted using structured questionnaires, while data analysis involved descriptive statistics, validity and reliability testing, classical assumption testing, multiple linear regression analysis, and hypothesis testing. The findings reveal that financial literacy and financial inclusion have a positive and significant effect on the sustainability of culinary MSMEs, both partially and simultaneously. The Adjusted R Square value of 0.517 indicates that 51.7% of business sustainability is explained by the two independent variables, while the remaining percentage is influenced by other factors outside the model. These findings highlight the importance of strengthening financial knowledge and expanding access to financial services to support sustainable MSME development in Kudus Regency and improve long-term business competitiveness significantly.

Downloads

Download data is not yet available.

References

Akande, J. O., Hosu, Y. S., Kabiti, H., Ndhleve, S., & Garidzirai, R. (2023). Financial literacy and inclusion for rural agrarian change and sustainable livelihood in the Eastern Cape, South Africa. Heliyon, 9(6).

Coleman, J. S., & Farraro, T. J. (1992). Rational choice theory: Advocacy and critique.

Djafar, M. I., Mahdalena, M., & Wuryandini, A. R. (2025). The Influence of Financial Literacy and Financial Inclusion on the Sustainability of MSMEs. Jambura Accounting Review, 6(1), 300–310.

Erwin, E., Subagja, A. D., Masliardi, A., Hansopaheluwakan, S., Kurniawan, S. D., Darmanto, E. B., & Muksin, N. N. (2023). Digital Business: Latest Marketing Strategies and Techniques. PT. Green Pustaka Indonesia.

Ghozali, I. (2018). Multivariate Analysis Application with IBM SPSS 25. Semarang: Diponegoro University Publisher. Gunawan, C. (2019). Multiple Linear Regression. Gunawan, C.(2019). Regresi Linear Berganda.

Hilmawati, M. R. N., & Kusumaningtias, R. (2021). Financial Inclusion and Financial Literacy on the Performance and Sustainability of the Micro, Small, and Medium Enterprise Sector. Nominal: A Barometer of Accounting and Management Research, 10(1), 135–152.

Jufri, A. (2023). Financial Management Analysis And Devolepment Of Sikapa Chips Business In Cemba Village, Enrekang District, Enrekang Rehgency. Muhammadiyah University Of Parepare.

Finance, O. J. (2024). National Survey of Financial Literacy and Inclusion. 17, 302.

Kirana, T. M., Nur, D. I., & Bachtiar, A. (2024). Financial Literacy and Digital Innovation on MSMEs Performance Through Business Sustainability at Bulak Fish Center MSMEs in East Surabaya. Indonesian Journal of Business Analytics, 4(2), 357–380. https://doi.org/10.55927/ijba.v4i2.9313

Kisin, D. L., & Setyahuni, S. W. (2024). The Influence of Financial Literacy, Financial Inclusion, and Financial Technology (Fintech) on the Sustainability of MSMEs in Semarang City. Journal of Economics, Business, Management, and Accounting (JEBMA), 4(1), 116–129.

Leatemia, L. D., Susilo, A. P., Donkers, J., & van Merrienboer, J. J. G. (2023). Developing student-centred perspectives in PBL: how teacher profiles reveal educational needs for faculty development programmes. BMC Medical Education, 23(1), 580.

Maulana, M. I., & Suyono, E. (2023). The Influence of Financial Literacy and Digital Literacy on the Sustainability of Sharia-Based MSMEs. Journal of Islamic Economics, 9(3), 4256.https://doi.org/10.29040/jiei.v9i3.10856

Mustaghfiroh, A., & Martini, T. (2025). Analysis of the Implementation of SAK EMKM in the Preparation of MSME Financial Reports (Case Study in Kudus Regency). Journal of Islamic Economics and Business, 3(1), 71–84.

Natsir, K., & Waani, A. M. (2023). Digital-Based MSME Financial Recording Training. Indonesian Community Service Journal, 6(1), 55–64.

Pradipta, Y. B., & Kristanto HC, R. (2024). The Effect of Financial Literacy and Financial Inclusion on the Performance of Culinary MSMEs in Yogyakarta City. Journal of Educational Management and Social Sciences (JMPIS), 5(6).

Priadana, M. S., & Sunarsi, D. (2021). Quantitative research methods. Pascal Books.

Puspitasari, A. D., Octavini, N. A., Setiawan, Y., & Nuraini, R. (2024). Scientific Journal of Management and Business: Sustainability of Women-Owned MSMEs: Financial Literacy, Financial Inclusion, and Fintech. Scientific Journal of Management and Business. Scientific Journal of Management and Business, 25(2), 122–142.

Ramadani, M. (2024). The Effect of Financial Literacy and Financial Inclusion on the Performance of Micro, Small, and Medium Enterprises (Case Study of Micro, Small, and Medium Enterprises in Medan Amplas Regency).

Saa, M., Azizah, N., & Zulfa, M. C. (2020). Financial Management Training for Muria Coffee MSMEs in Kudus Regency, Central Java. E-Dimas: Journal of Community Service, 11(4), 489–492.

Sahdan, R., & Sardju, F. (2023). Financial Inclusion, Financial Literacy, And Financial Technology Impact On The Sustainability Of Micro, Small, And Medium Enterprises: A Study In The SMES Of Tidore Islands, Indonesia. International Journal of Economics Development Research, 4(3), 1814–1825.

Sitompul, V. E. (2023). Strategies to Increase the Competitiveness of Batangtoru Batik MSMEs through Online Marketing. UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan.

Sugiyono. (2016). Qualitative Research Methods and Research and Development. Alfabeta, Bandung.

Tri Widayati, S. E. (2025). Sustainability of MSMEs in Indonesia: Strategy and Implementation. KBM Indonesia Publisher.

UMKM, D. D. (2024). Department of Manpower, Industry, Cooperatives, and MSMEs, Kudus Regency. Source: Department of Manpower, Industry, Cooperatives, and MSMEs, Kudus Regency. No. 1, 2024.

Yanti, W., & Zuhroh, S. (2022). The Effect of Financial Inclusion and Financial Literacy on the Sustainability of Culinary Businesses in West Palu Regency. Collaborative Journal of Science, 5(8), 515–525.

Yuliyawati, Y., & Mardiana, M. (2023). Financial Literacy Analysis on the Sustainability of MSMEs with Financial Inclusion in Gianyar MSMEs. Proaksi Journal, 10(2), 246–262. https://doi.org/10.32534/jpk.v10i2.3981