THE INFLUENCE OF FINANCIAL LITERACY, BUSINESS CHARACTERISTICS, ENTREPRENEURIAL CHARACTERISTICS, AND LOAN CHARACTERISTICS ON BUSINESS PERFORMANCE MEDIATED BY CREDIT ACCESS

Abstract

This study aims to analyze the influence of financial literacy, business characteristics, entrepreneurial characteristics, and loan characteristics on business performance through credit access. The research employed a quantitative method with a survey approach. The population consisted of Micro and Small Industry actors in the textile and apparel subsector in West Java Province, with a sample of 205 respondents selected using proportionate allocation from Bandung Regency, Bogor Regency, and Bandung City. Data were collected through questionnaires developed based on indicators of financial literacy, business characteristics, entrepreneurial characteristics, loan characteristics, credit access, and business performance. Data analysis was conducted using Structural Equation Modeling with the Partial Least Squares approach (SEM-PLS) to examine the relationships among variables and to test the research hypotheses. The results show that financial literacy influences credit access; business characteristics do not influence credit access; entrepreneurial characteristics influence credit access; and loan characteristics influence credit access. Financial literacy does not influence business performance; business characteristics influence business performance; entrepreneurial characteristics influence business performance; and loan characteristics do not influence business performance. In addition, credit access acts as a mediating variable in the relationships between financial literacy, entrepreneurial characteristics, and loan characteristics with business performance, but it does not mediate the relationship between business characteristics and business performance.