THE INFLUENCE OF FINANCIAL LITERACY, FINANCIAL INCLUSION, FINANCIAL ATTITUDES, AND TAXATION KNOWLEDGE ON THE PERFORMANCE AND SUSTAINABILITY OF SMALL AND MEDIUM INDUSTRIES IN MATARAM CITY

Abstract

This study aims to identify factors that influence the performance and sustainability of Small and Medium Industries (IKM) in Mataram City, focusing on financial literacy, financial inclusion, financial attitudes, and taxation knowledge. Primary data was obtained through the distribution of questionnaires to 93 IKM respondents using Google Forms, while secondary data was obtained from official documents, books, and scientific journals. Data processing was measured using a Likert scale of 1 to 5 and analyzed using Partial Least Square (PLS) through SmartPLS 3.0 software. The analysis showed that financial literacy did not significantly affect the performance and sustainability of SMEs. However, financial inclusion has a significant positive influence on the performance and sustainability of SMEs. In addition, financial attitudes also significantly positively influence the sustainability of SMEs, although not on performance. Knowledge of taxation has a significant positive effect on the performance of SMEs but not on sustainability. This finding underscores the importance of financial inclusion and financial attitudes in improving the performance and sustainability of SMEs in Mataram City.