Research Article
Financial Factors Determinant to MSME Performance Evident from City and Tegal Regency
@INPROCEEDINGS{10.4108/eai.30-7-2025.2360604, author={Amran Andromeda and Sri Wahyuni and Naelati Tubastuvi and Suryo Budi Santoso}, title={Financial Factors Determinant to MSME Performance Evident from City and Tegal Regency}, proceedings={Proceedings of the 5th Business Innovation Sustainability and Technology International Conference, BISTIC 2025, 30th July 2025, Malang, Indonesia}, publisher={EAI}, proceedings_a={BISTIC}, year={2025}, month={12}, keywords={accounting information system capital structure capital budgeting msme performance}, doi={10.4108/eai.30-7-2025.2360604} }- Amran Andromeda
Sri Wahyuni
Naelati Tubastuvi
Suryo Budi Santoso
Year: 2025
Financial Factors Determinant to MSME Performance Evident from City and Tegal Regency
BISTIC
EAI
DOI: 10.4108/eai.30-7-2025.2360604
Abstract
This study aims to examine financial management factors that influence the performance of Micro, Small, and Medium Enterprises (MSMEs) in City and Tegal Regency. The factors tested include the use of accounting information system, the choice of capital structure, and adoption of capital budgeting methods. The research employs a quantitative approach with a population of 880 respondents and purposive sampling of 100 participants. Data were collected through surveys using a Likert-scale questionnaire and analyzed with Partial Least Squares (PLS) application. The findings reveal that in City and Tegal Regency, accounting information system and capital structure positively influence MSME performance, whereas capital budgeting has no significant effect. The implication of this study is that MSME in City and Tegal Regency should improve the usage of accounting information system and optimize capital structure selection to enhance performance. Findings provide MSME practitioners with insights into which financial factors could affect their business outcomes.
