The novelty of this research is to include financial digitalization in research on the
effect of financial inclusion and intellectual capital on MSME business performance. This
is because financial digitalization has an important role in mediating the influence of
financial inclusion and intellectual capital in improving the financial performance of
SMEs. With financial digitalization, SMEs can access financial services more easily,
quickly, and efficiently. This opens up opportunities for SMEs to optimize intellectual
capital, such as employee knowledge and skills, in managing finances better. In
addition, with the support of digitalization, SMEs can achieve higher operational
efficiency, reduce costs, and make optimal use of intellectual potential to improve their
competitiveness and financial performance.
Good Afternoon,
What are the underlying reasons between financial inclusion and MSME
performance, so that the hypothesis is rejected?
Thankyou
Replies:
Financial inclusion has yet to improve the financial performance of SMEs because
financial services, especially those that are digital-based, can impose additional costs
on SMEs. This can reduce the profits that should be earned and hinder the growth of
SMEs^ financial performance. The positive impact of financial inclusion can be hindered
if the level of financial literacy is low or if the financial services offered are of poor
quality and irrelevant to users^ needs. Inadequate infrastructure can also limit the
positive impact of financial inclusion on SMEs^ financial performance. In addition, the
limitations of MSMEs in accessing banking financial services is one of the barriers for
MSMEs to improve their financial performance.
Good Afternoon,
What are the underlying reasons between financial inclusion and MSME
performance, so that the hypothesis is rejected?
Thankyou
Replies:
