THE INFLUENCE OF CAPITAL, DIGITAL PAYMENTS, AND FINANCIAL LITERACY ON MSME INCOME IN JIMBARAN TRADITIONAL VILLAGE

Abstract

In Bali Province, there are 412,265 MSME units which continue to increase every year. The government provides assistance to help MSMEs develop their businesses in the form of capital assistance and loan rate relief. However, MSME players have not implemented much financial management and there is still a lack of good use of digital payments. The small amount of capital owned, the low level of financial literacy and the use of digital payment for MSMEs in Jimbaran Traditional Village can make the income earned from the business undirected. The purpose of this study was to calculate and analyze the effect of capital, digital payment, and financial literacy on MSME income in Jimbaran Village both partially and simultaneously. This research is quantitative research with data analysis techniques using multiple linear regression tests. The sample was taken using purposive sampling method and 50 MSMEs were obtained. The independent variables in this study are capital, digital payment, and financial literacy, while the dependent variable in this study is income. The results showed that capital, digital payment and financial literacy partially had a positive and significant effect on MSME income in the traditional village of Jimbaran and there was a positive and significant effect between capital, digital payment, and financial literacy simultaneously on MSME income in the traditional village of Jimbaran.