Does Financial Behavior Mediate The Relationship Between Financial Literacy and Financial Experience Towards Financial Performance of Small Businesses?

This study examines the effect of financial literacy and financial experience on financial performance using financial behavior as a mediator. One novelty of this research is to test the role of financial behavior as a mediating variable. The sample of this study was 91 SMEs located in Purwokerto, Indonesia. This study provides evidence of the positive effect of financial literacy on SMEs' financial behavior and financial performance. This study has not provided evidence of the mediating role of financial behavior on the relationship between financial literacy and financial experience on SME financial performance.