The Influence Of Product Quality, Financial Literacy, Digital Literacy, Financial Management, And Digital Marketing On The Profitability of MSME Businesses

Abstract

This study aims to determine of product quality, financial literacy, digital literacy, financial manajemen, and digital marketing on the profitability of MSME businesses in Kupang city. The number of research samples was 50 MSME actors in Kupang City who were obtained using a purposive sampling method. The analysis techniqueused in this study is multiple linear regression analysis. The result of yhe analysis show that financial literacy with a significance value of 0.095> 0.05, digital literacy with a significance value of 0.092 > 0.05, financial manajement with a significance value 0.181 > 0.05, and digita marketing with a significance value of 0.260 > 0.05 has no effects on profitability MSME businesses while product quality which has a significance value of 0.027 < 0.05 affect the profitability of MSME businesses. The results of tests carried out simultaneo usly or simultaneo usly show that product quality, financial literacy, digital literacy, financial manajemen, and digital marketing have an effect on the profitability of MSME businesses in Kupang City with an R Square value in the regression analysis of 41.7%. Based on these results it can be concluded that it is necessary to increase understanding of financial literacy and use of digital literacy in financial development and manajement so that businesses can develop and adapt to technological developments so that they can take advantage of digital marketing facilities in the current era and MSMEs can develop and have competitiveness while product quality influence on the profitability of MSME businesses in Kupang City