Digital-Based Financial Literacy Training to Improve the Performance and Sustainability of Handicraft MSMEs in Wukirsari

Abstract

The digitalization of financial management offers many advantages, such as ease of transaction recording, improved accuracy, time efficiency, and ease in assessing business performance. Therefore, intervention is needed through training programs that can help MSME actors understand the importance of digitalization and how to use it in their brand operations. At present, the creative economy is growing rapidly, as is the MSME creative industry. The creative economy is very important for building sustainable economic value because resources are inexhaustible and renewable. Government assets (government), wealth (regional original revenue), leverage, and capital expenditure are some of the factors that can affect the financial performance of the regional economy. Through a participatory approach, this community service program actively involves Micro, Small, and Medium Enterprises (MSMEs) in every stage of the process. To ensure effective transfer of skills and knowledge, evaluation, training implementation, and preparation are used. This preparation stage includes identifying participants' needs and mapping them. An initial survey was conducted to gather information about participants' understanding of financial management and digital technology. For financial planning, knowledge and understanding of finance will affect one's attitude toward financial products and services. With high financial knowledge, a person can choose and utilize financial products and services as needed, make good financial planning, and be confident and trusting in financial institutions, including the benefits, rights, and obligations associated with those financial products and services. In terms of MSME financial management and operations, financial literacy and digital financial literacy have had a positive impact. With good digital literacy, MSMEs can improve operational efficiency, expand market reach, and improve interaction with customers. In addition, understanding financial literacy will help Micro, Small, and Medium Enterprises (MSMEs) avoid debt, increase profitability, and maintain sustainability. Participants also gained a better understanding of the importance of digital financial knowledge and the use of modern financial technology for better financial management.