EXPLORATION OF FINANCIAL LITERACY STRATEGIES AND ADOPTION OF FINANCIAL TECHNOLOGY TO SUPPORT SMALL AND MEDIUM ENTERPRISES GROWTH IN BORDER AREAS : A CASE  STUDY IN BENGKAYANG

Rissa Ayustia; Jones Parlindungan Nadapdap; Jorge Ribeiro Freitas; Rismanto Gatot Trisilo; Eligia Monixa Salfarini

Authors

Rissa Ayustia Institut of Shanti Bhuana
Jones Parlindungan Nadapdap Institut of Shanti Bhuana
Jorge Ribeiro Freitas Dili Institute of Technology
Rismanto Gatot Trisilo Universitas Widya Dharma Klaten
Eligia Monixa Salfarini Institut of Shanti Bhuana

Keywords:

Financial Literacy, Financial Technology, Small and medium enterprises, SWOT, Border area

Abstract

This case study examines how financial technology adoption and financial literacy initiatives support the expansion of small and medium-sized enterprises (SMEs) in border regions, with a particular emphasis on Bengkayang. Businesses face special opportunities and problems due to the border location, which calls for a customized strategy to technology integration and financial management. The research examines internal strengths and weaknesses as well as external opportunities and threats pertinent to the SME's goals using Internal Factors Analysis Strategy (IFAS) and External Factors Analysis Summary (EFAS) matrix. The IFAS analysis highlights significant advantages in the form of rising government backing and interest, offset by obstacles in the form of resistance and difficulty gaining access to technology. Opportunities like growing demand and partnerships are identified by the EFAS research, along with concerns like political instability and competition. Combining these results, the report suggests proactive risk mitigation, diversified financial services, enhanced collaborations, integrated technology access initiatives, and personalized financial literacy programs. In the particular setting of Bengkayang, a methodical approach to impact evaluation and ongoing monitoring and modification is suggested to guarantee the efficacy of initiatives in fostering SME growth.

Downloads

Download data is not yet available.

References

D. Voyloshnikova, “Transboundary area: methodological considerations,” Estrabão, vol. 4, pp. 137–152, 2023, doi: 10.53455/re.v4i.82.

Y. E. Teturan, S. Suwitri, Y. Warella, and H. Warsono, “The Management of Border Area Between Indonesia Republic and Papua New Guinea in Sota Region of Merauke District,” Prizren Soc. Sci. J., vol. 3, no. 1, pp. 18–31, 2019, doi: 10.32936/pssj.v3i1.76.

N. Ripain, S. M. Amirul, and R. Mail, “Financial literacy and SMEs’ potential entrepreneurs: The case of Malaysia,” J. Adm. Bus. Stud., vol. 3, no. 2, pp. 60–68, 2017, doi: 10.20474/jabs-3.2.1.

S. D. Dyreng, S. A. Hillegeist, and F. Penalva, “Earnings Management to Avoid Debt Covenant Violations and Future Performance,” Eur. Account. Rev., vol. 31, no. 2, pp. 311–343, 2022, doi: 10.1080/09638180.2020.1826337.

M. C. Jensen, “THEORY OF THE FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE,” Hum. Relations, vol. 72, no. 10, pp. 1671–1696, 1976, doi: 10.1177/0018726718812602.

A. Lusardi and O. Mitchell, “FINANCIAL LITERACY AROUND THE WORLD - Annamaria Lusardi and Olivia S. Mitchell,” Nber, vol. 17, no. 4, pp. 1–14, 2011.

A. Lusardi, “Financial literacy and the need for financial education: evidence and implications,” Swiss J. Econ. Stat., vol. 155, no. 1, pp. 1–8, 2019, doi: 10.1186/s41937-019-0027-5.

P. S. Kasoga, “Heuristic biases and investment decisions : multiple mediation mechanisms of risk tolerance and financial literacy — a survey at the Tanzania stock market,” vol. 1, no. 2, pp. 102–116, 2021, doi: 10.1108/JMB-10-2021-0037.

N. Yulianis and E. Sulistyowati, “The Effect Of Financial Literacy , Overconfidence , And Risk Tolerance On Investment Decision,” vol. 4, no. 1, pp. 61–71, 2021.

A. Nurwulandari, “Analysis of the Impact of Financial Technology and Financial Literacy on MSME Business Sustainability,” Lead J. Econ. Adm., vol. 1, no. 4, pp. 92–97, 2023, doi: 10.56403/lejea.v1i4.97.

C. B. Lontchi, B. Yang, and K. M. Shuaib, “Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy,” Sustain., vol. 15, no. 3, 2023, doi: 10.3390/su15032171.

S. Weixiang and W. Rui, “An empirical assessment of financial literacy and behavioral biases on investment decision : Fresh evidence from small investor perception,” no. September, pp. 1–18, 2022, doi: 10.3389/fpsyg.2022.977444.

J. B. Mabula and H. D. Ping, “Use of technology and financial literacy on SMEs practices and performance in developing economies,” Int. J. Adv. Comput. Sci. Appl., vol. 9, no. 6, pp. 74–82, 2018, doi: 10.14569/IJACSA.2018.090611.

H. Li, Z. Lu, and Q. Yin, “The Development of Fintech and SME Innovation: Empirical Evidence from China,” Sustain., vol. 15, no. 3, 2023, doi: 10.3390/su15032541.

O. Ali, M. Ally, Clutterbuck, and Y. Dwivedi, “The state of play of blockchain technology in the financial services sector: A systematic literature review,” Int. J. Inf. Manage., vol. 54, no. July, p. 102199, 2020, doi: 10.1016/j.ijinfomgt.2020.102199.

T. Moenjak, A. Kongprajya, and C. Monchaitrakul, Fintech, Financial Literacy, and Consumer Saving and Borrowing: the Case of Thailand, no. 1100. 2020.

E. Themes, “COGNITIVE BIASES AS AN INTEGRAL PART OF BEHAVIORAL FINANCE Mil ј an Lekovi ć,” vol. 58, pp. 75–96, 2020, doi: 10.2478/ethemes-2020-0005.

O. E. Ogunlusi and O. Obademi, “The Impact of Behavioural Finance on Investment Decision-making : A Study of Selected Investment Banks in Nigeria,” no. 1952, 2019, doi: 10.1177/0972150919851388.

A. M. Zalata, C. Ntim, A. Aboud, and E. Gyapong, “Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle,” J. Bus. Ethics, vol. 160, no. 2, pp. 515–534, 2019, doi: 10.1007/s10551-018-3918-y.

D. Paper, “Overconfidence and the political and financial behavior of a representative sample,” no. 283, 2021.

A. K. Widagdo, R. Rahmawati, S. Murni, T. R. Wulandari, and S. W. Agustiningsih, “Corporate Governance, Audit Quality, Family Ownership and Earnings Management,” KnE Soc. Sci., vol. 2021, pp. 519–534, 2021, doi: 10.18502/kss.v5i5.8839.

F. Fauzi, D. Antoni, and E. Suwarni, “Women entrepreneurship in the developing country: The effects of financial and digital literacy on SMEs’ growth,” J. Gov. Regul., vol. 9, no. 4, pp. 106–115, 2020, doi: 10.22495/JGRV9I4ART9.

J. Francis, A. Mukherji, and J. Mukherji, “Examining relational and resource influences on the performance of border region SMEs,” Int. Bus. Rev., vol. 18, no. 4, pp. 331–343, 2009, doi: 10.1016/j.ibusrev.2009.04.004.

G. Santosh, B. Venkata, R. Vandadi, and D. Singh, “Small and medium ‑ sized enterprises ’ contribution in digital technology,” Ann. Oper. Res., no. 0123456789, 2021, doi: 10.1007/s10479-021-04235-5.

T. Makkonen and B. Leick, “Locational challenges and opportunities for SMEs in border regions,” Eur. Plan. Stud., vol. 28, no. 10, pp. 2078–2098, 2020, doi: 10.1080/09654313.2019.1705765.

A. A. Eniola and H. Entebang, “SME Managers and Financial Literacy,” vol. 18, no. 3, pp. 1–18, 2017, doi: 10.1177/0972150917692063.

M. Kato and T. Charoenrat, “Author ’ s Accepted Manuscript,” Int. J. Disaster Risk Reduct., 2017, doi: 10.1016/j.ijdrr.2017.10.002.