Research Article
Interrelationship between Sustainability Level and Financial Performance of SMEs
@INPROCEEDINGS{10.4108/eai.27-8-2020.2303188, author={Hendri Setyawan}, title={Interrelationship between Sustainability Level and Financial Performance of SMEs}, proceedings={Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICIC}, year={2020}, month={12}, keywords={please list your keywords in this section}, doi={10.4108/eai.27-8-2020.2303188} }- Hendri Setyawan
Year: 2020
Interrelationship between Sustainability Level and Financial Performance of SMEs
ICIC
EAI
DOI: 10.4108/eai.27-8-2020.2303188
Abstract
SMEs accumulatively contribute greatly to the economy and the environment. However, the attention to the sustainability of SMEs is still considerably low. This study starts from the gap in the results of previous studies. This study aims to examine the effects of financial performance on the sustainability of SMEs and the effects of sustainability of SMEs on their financial performance. The study was conducted at SMEs in the Central Java Province. We used two regression models. A total sample of 300 respondents was obtained. The data used in this study are primary data obtained through questionnaires in August 2019. The results of the study prove that there is no significant influence in either of the two directions above. This proves the validity of the supply and demand hypothesis which states that there is no clear link between the level of sustainability with financial performance