Financial Inclusion and Sustainable Economic Performance of Rural MSMEs: Evidence from Indonesia

Rafida Khairani; Deva Djohan; Cici Handayani; Ahmad Rivai; Fitria Halim

doi:10.64276/ams.v1i3.76

Authors

Rafida Khairani Universitas Prima Indonesia
Deva Djohan Institut Bisnis Informasi Teknologi dan Bisnis
Cici Handayani Politeknik Unggul LP3M
Ahmad Rivai Universitas Mahkota Tricom Unggul
Fitria Halim Universitas Mikroskil

DOI:

https://doi.org/10.64276/ams.v1i3.76

Keywords:

Digital Financial Inclusion, Sustainable Economic Performance, Rural Areas, PLS-SEM

Abstract

This study examines the effect of digital financial inclusion on the sustainable economic performance of rural micro, small, and medium enterprises (MSMEs) in Indonesia. Despite the rapid development of digital financial services, rural MSMEs still face significant challenges in accessing formal financial systems, which may hinder their long-term business sustainability. This study adopts a quantitative approach using a survey method, with data collected from 78 MSME owners in rural areas of Deli Serdang Regency, North Sumatra. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both measurement and structural models. The results indicate that digital financial inclusion has a positive and significant effect on sustainable economic performance, suggesting that improved access to and utilization of digital financial services enhances financial management, operational efficiency, and business resilience. These findings highlight the importance of digital financial systems in supporting the sustainability of MSMEs, particularly in rural areas where access to traditional financial services is limited. This study contributes to the literature by providing empirical evidence on the role of digital financial inclusion in promoting sustainable economic outcomes in rural contexts. Practically, the findings suggest that policymakers and financial institutions should strengthen digital financial ecosystems through improved infrastructure, accessibility, and targeted support programs to enhance MSME sustainability

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