The Role of Financial Literacy, Financial Inclusion, Digital Marketing Strategies, and Cashless Payment Usage in Improving The Financial Performance of MSMEs in Medan City Erny Luxy D Purba1, Khairunnisa Harahap2, La Ane3
1. Universitas Negeri Medan
2. Department of Accounting Education, Faculty of Economic
Abstract
Abstrak. The financial performance of MSMEs is a crucial indicator that reflects a business^s ability to survive and grow. However, many MSMEs in Medan City still face challenges in financial management and adapting to digital transformation. This study aims to analyze the influence of financial literacy, financial inclusion, digital marketing strategies, and the use of cashless payments on the financial performance of MSMEs. This research employs a quantitative approach with a descriptive-verificative research design. Primary data were collected through direct distribution of questionnaires to 300 MSME actors in Medan City using purposive sampling techniques. The data were analyzed using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The results show that financial literacy and the use of cashless payments have a positive and significant influence on the financial performance of MSMEs. Conversely, financial inclusion and digital marketing strategies do not have a significant effect. These findings indicate that enhancing financial understanding and utilizing digital payment methods can directly improve MSME financial performance, while access to financial services and digital marketing strategies have not yet been optimally utilized. This study provides important implications for policymakers and business actors to place greater emphasis on financial education and the use of transactional technologies to further promote the growth of the MSME sector, as well as to improve competitiveness and business sustainability in facing the challenges of the digital economy.
