THE EFFECT OF ISLAMIC FINANCIAL LITERACY ON THE PERFORMANCE OF UMKM IN MEDAN CITY

Authors

  • Mutiah Khaira Sihotang Universitas Muhammadiyah Sumatera Utara Author

Abstract

THE EFFECT OF ISLAMIC FINANCIAL LITERACY ON THE PERFORMANCE OF UMKM IN MEDAN CITY

Mutiah Khaira Sihotang

Universitas Muhammadiyah Sumatera Utara

mutiahkhaira@umsu.ac.id

Uswah Hasanah

Universitas Muhammadiyah Sumatera Utara

uswahhasanah@umsu.ac.id

 

 

This study aims to determine the effect of Islamic financial literacy on the performance of UMKM in the city of Medan. The research method used in this study is a quantitative method. The data used are primary data obtained through a questionnaire with a Likert scale. The population in this study were all UMKM actors in the city of Medan. The sampling technique in this study was using the accidental sampling method, totaling 30 people. The data analysis technique used is simple linear regression analysis with statistical tests consisting of partial tests with ttest and R Square (R2) determination test. Based on the results of the t-test, Islamic financial literacy has a significant effect on the performance of UMKM in Medan City with a tcount of 3,585 with a significance level of 0.001. While the value of R2 is 0.806%, this means that 80.6% of Islamic financial literacy can explain the performance of UMKM and the remaining 19.4% is explained by other variables outside of this research variable.

Keywords: Financial Literacy, UMKM Performance, and UMKM Actors

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Published

2022-02-12

Issue

Section

Strengthening Humanity Values through Economic, Social and Legal Development in Society 5.0 Era