Financial Discipline Mediation: A Study Of Financial Literacy And The Use Of Fintech On Small And Medium Business Performance

Abstract

This study aims to examine the influence of financial literacy, fintech, and financial discipline on the business performance of small and medium enterprises (SMEs) in Jeneponto Regency. The method used is a quantitative approach with data analysis techniques using SmartPLS. The results of the study show that financial literacy has a significant effect on financial discipline, which in turn contributes to improving the business performance of SMEs. Although fintech has an effect on financial disciplines, its influence on business performance is not very strong. The implications of this research are the importance of increasing financial literacy and fintech adoption through training and mentoring to improve the performance of SMEs. The novelty of this research lies in testing the relationship between financial literacy, fintech, and financial discipline to the business performance of SMEs in Jeneponto Regency, which has not been widely explored, especially in rural areas. The study also introduces financial disciplines as a mediating variable that links financial literacy to business performance, making a new contribution to the literature examining how financial factors interact to improve SME performance. The limitations of this study lie in the limited number of samples and the dependence on respondents' perceptions. Further research with a larger sample and qualitative approach is expected to provide a deeper understanding.