Published date: Apr 05 2024

Journal Title: KnE Social Sciences

Issue title: Brawijaya International Conference on Business Administration, Taxation, and Tourism (BICBATT 2023)

Pages: 228–246

DOI: 10.18502/kss.v9i11.15779

Agus Supriyadiagus.supriyadi019@gmail.comFaculty of Administrative Sciences, Brawijaya University, Malang, Indonesia

Muhammad SaifiFaculty of Administrative Sciences, Brawijaya University, Malang, Indonesia

Maria Goretti Wi Endang NPFaculty of Administrative Sciences, Brawijaya University, Malang, Indonesia

Credit loans among MSMEs are beneficial for business sustainability. The quality of a credit loan is a concern to avoid default, so the topic of loan repayment performance is interesting to explore. This study summarizes and analyzes several previous studies related to the topic of the influence of financial literacy on business performance among MSMEs, as well as the influence of financial literacy on loan repayment performance. Based on a literature study conducted, financial literacy was found to have a significant influence on business performance and loan repayment performance among MSMEs. This study found gaps in previous research, there are still limited studies that provide a comprehensive framework explaining how financial literacy influences loan repayment performance directly or through business performance variables. Therefore, it is important to research further, how an MSME manager who accesses credit to run his business can achieve optimal business performance, where the results will be used for loan repayment. This research proposes business performance as a mediating variable that could be considered in future research.

Keywords: financial literacy, business performance, loan repayment performance

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