Development of financial literacy and fintech adoption on women SMEs business performance in Indonesia

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Abstract
Women-owned small businesses are crucial to the Indonesian economy. Despite this contribution, women entrepreneurs face many challenges when building their businesses, especially getting business loans. Women entrepreneurs adopt less technology and have less financial expertise than men. This study aims to determine financial literacy factors affecting women SMEs' business success and the extent of financial technology (FinTech) use as an alternative funding source to formal financial institutions. The study examines FinTech adoption using the Unified Theory of Acceptance and Use of Technology (UTAUT Theory). This study also examines how FinTech adoption mediates the indirect effect of financial literacy on SME business performance. The study uses a quantitative research approach using a judgmental sample of 270 women entrepreneurs who have previously used FinTech. The data is analyzed with SEM-PLS. According to the study, effort expectancy, performance expectancy, and social influence all have a beneficial impact on FinTech adoption among women-owned small businesses. The survey found that FinTech adoption was a key factor influencing women SMEs' business performance. The findings also indicate that financial literacy has a beneficial effect on business success. The study reveals FinTech adoption as a mediating factor in the association between financial literacy and SMEs business success. As a result, our findings contribute to a better understanding of how digital technology adoption affects SMEs' performance and long-term sustainability. The findings offer insights for entrepreneurs, policymakers, and company owners looking to enhance the survival rate of SMEs by improving operations and harnessing digital technology to promote capital accessibility, FinTech adoption, and financial literacy.

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