Sustainability and Financial Inclusion of BPUM Recipient MSMEs in Central Java Province

Abstract

Micro, Small, and Medium-Sized Enterprises (MSMEs) are the national economic pillars of Indonesia's economy that have been most negatively impacted by the pandemic. MSMEs face obstacles as they expand, the most noteworthy of which is a drop in sales. Other difficulties include procuring raw supplies, diminishing output, capital, distribution delays, and job layoffs. This study looks at how business characteristics, financial inclusion, and digital finance effect MSME income in Jawa Tengah. Examine how BPUM support, company characteristics, financial inclusion, digital finance, and MSME revenue effect MSMEs in the Province of Jawa Tengah. Examine how the income of MSMEs in the Province of Jawa Tengah affects their sustainability by looking at business characteristics, financial inclusion, and digital finance. To evaluate primary data from survey findings, the SEM-PLS analytic approach was applied. The data revealed that BPUM support, company characteristics, financial inclusion, and digital finance all had a positive and significant impact on MSME income in Jawa Tengah. MSMEs in the Province of Jawa Tengah are essentially unaffected by digital finance, company characteristics, financial inclusion, and BPUM aid. However, MSME income has an effect on their ability to stay in business. BPUM support, business characteristics, financial inclusion, and digital finance have an indirect and significant impact on the sustainability of MSMEs in the Province of Jawa Tengah through their revenue