Presenters: Ferri Alfadri, Muhammad Ariful Ma’arif, Nurul Widad bint Abu Hassan
Affiliation: UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan, International Islamic University Malaysia (IIUM)
Room: 4 (Online)
ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, researchers from UIN Syekh Ali Hasan Ahmad Addary Padangsidimpuan and the International Islamic University Malaysia (IIUM) presented their study on financial literacy and performance among micro, small, and medium enterprises (UMKM) in North Sumatra. The study, titled “Analysis Of The Implementation Of Literacy, Financial Management On The Financial Performance Of UMKM Through Payment Gateway In North Sumatera,” was presented by Ferri Alfadri, Muhammad Ariful Ma’arif, and Nurul Widad bint Abu Hassan.
The research aimed to analyze the impact of financial literacy and financial management on the financial performance of UMKM, both directly and through the use of payment gateways in North Sumatra. The study employed a causal observation and survey method, utilizing a Likert scale questionnaire to gather data from UMKM operators in the region. The collected data were processed and analyzed using component-based structural equation modeling (SEM) with the Smart PLS 3 software.
Key findings from the study include:
- Financial Literacy and Management: Both financial literacy and management have a significant direct impact on the financial performance of UMKM.
- Payment Gateway: The use of payment gateways also plays a crucial role in enhancing financial performance by facilitating transactions for UMKM businesses in North Sumatra.
The results highlight the importance of financial literacy and effective financial management practices in improving UMKM performance. Additionally, the integration of payment gateway technology is identified as a key factor in supporting financial transactions and boosting business outcomes.
The presentation emphasized the need for continued support and development in financial literacy and management for UMKM, as well as the benefits of adopting modern payment solutions to enhance overall financial performance.