Financial Literacy as a Key Driver for Effective Financial Planning Among Small Business in Bergas

Tatang Kurniawan; Idah Kusuma Dewi

doi:10.59890/ijbmp.v3i2.13

Authors

Tatang Kurniawan STIEPARI, Semarang
Idah Kusuma Dewi STIEPARI, Semarang

DOI:

https://doi.org/10.59890/ijbmp.v3i2.13

Keywords:

Finansial, Literacy, Planning

Abstract

This study examines the role of financial literacy in financial planning among the owners of Warung Makan Laros Banyuwangi in Bergas District, Semarang. Using a descriptive qualitative approach through in-depth interviews and direct observation, the study analyzes the business owners’ level of financial literacy and its implications for financial planning practices in business operations. The findings reveal that the owners possess a low level of financial literacy, as reflected in the lack of separation between personal and business finances, minimal financial record-keeping, and limited business development planning, despite having access to formal financial services. This low financial literacy negatively impacts the effectiveness of short-, medium-, and long-term financial planning. The study recommends improving financial literacy through the separation of personal and business finances, systematic financial record-keeping, and active participation in relevant financial literacy training programs as strategic steps to support the sustainability of culinary MSMEs

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