The Effect of Motivation on Financial Literation

Study on UKM in Malang City

DOI

10.2991/aebmr.k.210928.009How to use a DOI?

Keywords

motivation, financial literacy, UKM

Abstract

Small and Medium Enterprises (SMEs) have a big role in the economy, especially in developing countries. However, in its role, Indonesia still has a level of access to finance below several ASEAN countries such as Singapore, Malaysia and Thailand. Thus it can be said that the literacy of SMEs in Indonesia is low. This study considers one of the factors that influence financial literacy, namely motivation. The method we use for this research is direct interviews and using a questionnaire as a data collection tool. We have successfully interviewed one hundred and ninety-one UKM located in Malang. The results showed that the motivation of small business actors had a significant effect on financial literacy. Based on this, the government together with financial institutions need to formulate the right program. Apart from the education provided by educators, the program can also take the form of socialization and consultation services, either directly or indirectly. Development of supporting infrastructure and public access to financial institutions, products or services according to their needs and capacities also need attention for immediate optimization.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Ilham Azmi Zarkasi
AU  - Kusdi Rahardjo
PY  - 2021
DA  - 2021/09/30
TI  - The Effect of Motivation on Financial Literation
BT  - Proceedings of the 3rd Annual International Conference on Public and Business Administration (AICoBPA 2020)
PB  - Atlantis Press
SP  - 40
EP  - 43
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210928.009
DO  - 10.2991/aebmr.k.210928.009
ID  - Zarkasi2021
ER  -