Anteseden Financial Well-Being pada Usaha Mikro Kecil Menengah (UMKM) Binaan Bank Indonesia

Abstract

The digital transformation of the financial system requires micro, small, and medium enterprises (MSMEs) to possess adequate literacy and proficiency in financial technology (fintech) in order to achieve sustainable financial well-being. This study aims to examine the influence of Digital Financial Literacy, Entrepreneurial Orientation, and Managerial Attributes on the Financial Well-Being of MSMEs fostered by Bank Indonesia, with Financial Technology Proficiency serving as a mediating variable and Perceived Regulatory Support as a moderating variable. Using a quantitative approach, the study involved a population of 1,129 MSMEs across 33 provinces in Indonesia. A total of 295 respondents were selected as research samples through a purposive proportioned random sampling technique. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) and complemented with Multi-Group Analysis (MGA) to explore structural differences among micro, small, and medium business groups.The findings reveal that Digital Financial Literacy and Entrepreneurial Orientation have a positive and significant effect on Financial Technology Proficiency, yet do not directly enhance Financial Well-Being. Meanwhile, Managerial Attributes do not significantly affect Financial Technology Proficiency, but exert a direct and significant influence on Financial Well-Being. Furthermore, Financial Technology Proficiency mediates the relationships between Digital Financial Literacy and Entrepreneurial Orientation with Financial Well-Being, but not the relationship involving Managerial Attributes. In addition, Perceived Regulatory Support was found to moderate—but not significantly—the link between digital financial literacy and fintech proficiency.The MGA results indicate structural differences among MSME groups. For micro enterprises, digital financial literacy emerges as the key factor directly influencing both financial well-being and fintech proficiency. Among small enterprises, digital financial literacy strongly affects fintech proficiency, which in turn influences financial well-being. In medium enterprises, the dominant effects originate from fintech proficiency and entrepreneurial orientation. These findings highlight the essential role of enhancing digital literacy, entrepreneurial orientation, and fintech proficiency as strategic levers for improving MSME financial well-being. Policy implications emphasize the need for adaptive and context-specific capacity-building interventions tailored to the scale and characteristics of MSMEs.