Enhancing MSMEs’ Financial Inclusion and Resilience through Financial and Digital Literacy

Abstract

MSMEs often struggle to access formal financial services and maintain their resilience in the face of economic shocks. A financial literacy and financial inclusion framework can help develop financial resilience. Understanding the impact of financial and digital literacy on financial inclusion and resilience is still limited. This study aims to analyze the influence of financial and digital literacy on improving financial inclusion and resilience. The findings of this study are essential for policy interventions and long-term MSME resilience strategies. This explanatory research examines causal relationships among variables through hypothesis testing. The study objects are financial literacy and digital literacy, and their impact on financial inclusion and resilience in MSMEs in Bali. The instruments used were questionnaires on financial literacy, digital literacy, financial inclusion, and financial resilience. The sampling technique used was area purposive sampling. The sample consisted of 385 MSMEs. This study confirms that financial and digital literacy are crucial in improving MSME financial inclusion and resilience. Financial and digital literacy influence financial resilience. Financial inclusion is a significant mediating variable in building MSME resilience.

Keywords: Digital literacy, Financial inclusion, Financial literacy, Financial resilience, MSMEs

DOI: 10.7176/RJFA/17-3-01

Publication date: July 30^th 2026