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Abstract
The purpose of this research is to investigate and measure the level of financial literacy and its variables in the growth of SMEs in Palembang, South Sumatra, Indonesia. This study explains how the level of understanding of small and medium enterprises in Palembang City in implementing the level of sharia financial literacy either directly or through the level of experience in the growth of SMEs in Palembang City. The research sample consisted of 380 SME players in Palembang city and related parties from 7470 objects of the population studied in the city of Palembang. In the study, a survey method based on quantitative data was utilized. The research data were collected through a quantitative survey and analyzed using IBM SPSS 25. The results of this study confirm the relationship between Islamic financial literacy, the experience of business actors, and the growth of SMEs. The results of the study have revealed that Islamic financial literacy increases the growth of SMEs in Palembang. The study also provides an alternative solution in the form of information for policy-makers in developing a growth strategy for SMEs in Palembang by strengthening Islamic financial literacy, especially for SME business actors who already have entrepreneurial experience.
Keywords: Islamic financial literacy, business experience, growth of SMEs.
Introduction
SMEs have been-being becoming the backbone of the Indonesian and ASEAN economies. Around 88.8-99.9% of businesses in ASEAN are micro, small, and medium enterprises with employment reaching 51.7-97.2%. This business has a proportion of 99.99% of the total business actors in Indonesia or as many as 64.1 million units. Therefore, cooperation for the development and resilience of micro, small and domestic businesses needs to be prioritized. . The development of SMEs in the last nine years between the 2009 - 2018 period has shown an increase in terms of the number of units, the initial number of which was recorded at 52.7 million units, increasing to 64.1 million at the end of 2018 with a comparison of the number of workers involved of 96, 1 million and also increased to 116.9 million at the end of 2018
Empowerment of Cooperatives and Micro, Small and Medium Enterprises (SMEs) is an effort to achieve one of the goals of the Indonesian state and nation as stated...