The Mediating Role of Financial Literacy in the Characteristics of Msmes and Financial Technology on MSME Sustainability

Objective: To determine the influence of MSME and Fintech Characteristics on MSME Sustainability with Financial Literacy as mediation, by developing mathematical models and hypotheses related to phenomena.

Research Design: The research I use is quantitative, which is systematic research of parts and phenomena and the causality of their relationships.

Place and Duration of Study: Banyumas Regency from October 2023 to February 2024.

Methodology: In this study I used a sample of 141 MSME actors in Banyumas Regency, the sampling technique used was non-probability sampling in the form of accidental sampling. The analysis tool used is SmartPLS.

Results: This study shows that the characteristics of MSMEs, Fintech, and Financial Literacy have a positive and significant effect on the sustainability of MSMEs in Banyumas Regency. Furthermore, the characteristics of MSMEs and Fintechs affect financial literacy. Financial literacy is able to mediate the relationship between the characteristics of MSMEs to the sustainability of MSMEs. Meanwhile, financial literacy cannot mediate the relationship between Fintech and MSME sustainability.

Conclusion: The sustainability of MSMEs can be improved by the characteristics of MSMEs through financial literacy. Meanwhile, Fintech can directly affect the sustainability of MSMEs without going through financial literacy.