A study in the World Review of Entrepreneurship, Management and Sustainable Development has revealed the important role both financial and digital literacy play in boosting the performance and resilience of micro, small and medium enterprises in Indonesia. Given that such companies form the backbone of the national economy, it is critical, from the perspective of policymakers, to understand their activities and drivers, as well as their strengths and weaknesses.
The results are based on an analysis of survey results from 77 business owners and managers and consider levels of financial and technological literacy. The study shows that such literacy has a strong positive effect on the performance of small companies , while competitive pressures exert a smaller but still significant influence.
In the context of a resource-based view of companies, internal capabilities, rather than external conditions, are considered the primary drivers of competitiveness. As such, financial technological literacy are regarded as intangible strategic resources: valuable, rare, and difficult for competitors to replicate. Those small companies that can cultivate these “resources” can adapt, make informed decisions, and sustain long-term growth more effectively, the work suggests.
Financial literacy refers to the ability to manage budgets, plan investments, and interpret financial data accurately. For small business owners, such competence reduces the risk of poor financial decisions and improves resource allocation. Financial technology, fintech, literacy is the understanding and effective use of digital tools such as online banking platforms, digital payment systems, and accounting applications. This competency enhances operational efficiency and broadens access to regional, national, and potentially even international markets.
Nevertheless, competitive pressure does make a positive contribution to innovation in a company and how it refines its products and services. Competition is a catalyst for boosting creativity and improving efficiency. The implications of the work thus lie in how government and business associations might be encouraged to develop targeted financial and fintech literacy training for entrepreneurs.
Ulupui, I.G.K.A., Zairin, G.M., Sutanti, F.D., Khairunnisa, H., Zakaria, A. and Nurmalita, S. (2025) ‘Enhancing MSME performance: the role of FinTech literacy, financial literacy and competitive pressure’, World Review of Entrepreneurship, Management and Sustainable Development, Vol. 21, No. 4, pp.1–26.
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