The Influence of Financial Knowledge on Financial Management Behavior Among Fashion MSME Actors in Palopo City

Abstract

MSMEs (Micro, Small, and Medium Enterprises) are one of the important sectors in the economy, including in Palopo City. Fashion MSMEs in Palopo City not only contribute to job creation but also become part of the development of the creative economy with potential for further development. However, many MSME actors still face challenges in financial management. One factor believed to influence this is the level of financial knowledge possessed by business actors. Good financial knowledge can help MSME actors make appropriate financial decisions, manage cash flow, and allocate capital effectively. This study aims to determine the influence of financial knowledge on financial management behavior among fashion MSME actors in Palopo City. The data used is primary data obtained from questionnaires distributed to fashion MSME actors. The data analysis techniques used include descriptive analysis, simple linear regression analysis, T-test (partial), and coefficient of determination test (R²). The T-test results show that financial knowledge has a significant effect on financial management behavior among fashion MSME actors in Palopo City with a t-value of 8.030 > 2.051 and significance value of 0.000 < 0.05.