Financial Literacy, Financial Inclusion, Locus of Control and Financial Technology toward Financial Management of MSME

Aim: This study aims to determine the effect of financial literacy, financial inclusion, locus of control, financial technology on financial management (MSMEs). Study Design: This study uses a quantitative approach with a Structural Equation Modeling (SEM) analysis tool based on Partial Least Squares (PLS). Place and Duration of Study: This study was conducted specifically in Banyumas Regency, located in Central Java, Indonesia. Banyumas Regency is a diverse region with a large number of MSMEs operating across various sectors, making it an appropriate setting to examine the financial behaviors and management practices of MSME actors. Methodology: The employed research methodology is a quantitative approach. Utilizing sampling non-probability sampling method with convenience sample technique was used to collect data from MSME actors across various sectors. The analysis involved evaluating the measurement model (validity and reliability), structural model, and bootstrapping. Results: The results showed that financial literacy and locus of control have a positive and significant effect on the financial management of MSMEs. In contrast, financial inclusion and financial technology have no significant effect on financial management. Conclusion: The findings indicate that individuals with good financial knowledge and self-control are better able to understand financial issues and make the right decisions. Financial literacy and internal factors such as locus of control play an important role in improving understanding and skills in financial management to encourage better management. This research highlights that improving financial literacy and locus of control is crucial for empowering MSMEs. Government agencies and financial institutions should create ongoing, structured financial literacy programs for MSMEs with limited knowledge. Additionally, strengthening psychological factors like locus of control through training and mentoring can boost confidence and decision-making responsibility.