Analysis Factors That Affecting the Level of Financial Literation in The Small-Medium Industries (SMIs)

ABSTRACT : The purpose of this study are to 1) analyze the level of financial literacy of Small Medium Industries which in Indonesia, namely Industri Kecil Menegah (IKM), 2) to analyze the simultaneously effect of education, income, length of business, gender, and socialization on level of financial literacy, 3) to analyze the partially effects of education, income, length of business, gender, and socialization on level of financial literacy, and 4) analyze role of socialization in moderating influence of gender on level of financial literacy of SMIs. This research was conducted in West Denpasar with sample of 94 respondents. In this study using the Proportionate Stratified Random Sampling as the sampling technique. Data analysis techniques used in this study are descriptive statistics and Moderated Regression Analysis. Results found that 1) level of financial literacy of SMIs in West Denpasar was medium. 2) Level of education, income, length of business, gender, and socialization have a simultaneously and significant effect on the level of financial literacy of SMIs. 3) Level of education and length of business have a positive and significant effect, while income has no positive effect and no significant effect on the financial literacy level of SMIs. 4) Men have higher financial literacy than women. 5) The SMIs who received the socialization had higher financial literacy than the who did not receive the socialization. 6) Socialization as a moderating variable weakens the effect of gender on the financial literacy level of SMIs.
KEYWORDS : Financial Literacy, Education Level, Income, Length of Business, Socialization