The Impact of Financial Literacy, FinTech Utilization, and Literacy of Risk in FinTech on MSMEs Business Continuity in Yogyakarta

Micro, Small, and Medium Enterprises (MSMEs) can face significant challenges, including financial interruptions, operational hazards, and inadequate financial management. The government’s efforts to safeguard the sustainability of MSMEs include implementing priority support programs, providing working capital credit, and promoting their digitalization. Risk considerations impede the successful adoption of financial technology (FinTech), presenting obstacles to company continuity. This study aims to ascertain the impact of financial literacy, FinTech utilization, and literacy of risk in FinTech on the continuity of MSMEs in Yogyakarta. One hundred twelve samples of the entrepreneurs in Yogyakarta were acquired using a nonprobability sampling technique. However, after implementing rigorous data purification methods, only 100 sample replies were deemed suitable for data processing. The data from the investigations were examined using multiple linear regression. The study’s findings suggest that the introduction of FinTech-based partial assessments for financial literacy and literacy of risk in FinTech significantly affects the ability of small companies in Yogyakarta to continue their economic operations. Conversely, the utilization of FinTech has little impact on the uninterrupted operation of MSMEs in Yogyakarta. Keywords: business continuity, MSMEs, financial literacy, financial technology