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JHSS (Journal of Humanities and Social Studies) Volume 04, Number 02, September 2020, Page 152 - 156 https://journal.unpak.ac.id/index.php/jhss e-ISSN: 2598-120X; p-ISSN: 2598-117X THE INFLUENCE OF FINANCIAL KNOWLEDGE, FINANCIAL ATTITUDES AND PERSONALITY TO FINANCIAL MANAGEMENT BEHAVIOR FOR MICRO, SMALL AND MEDIUM ENTERPRISES TYPICAL FOOD OF COTO MAKASSAR Budiandriani a*), Khairina Rosyadahb) a)Universitas Muslim Indonesia, Makasar, Indonesia b) Sekolah Tinggi Ilmu Manajemen (STIM) LPI Makassar, Indonesia *)Corresponding Author: [email protected] Article history: received 07 August 2020; revised 28 August 2020; accepted 14 September 2020 Abstract. This study aims to analyze the effect of financial knowledge, financial attitudes, and personality on financial management behavior in micro, small, and medium-sized businesses of the typical Coto Makassar food in Makassar. This research is included in the causal associative research. The subjects of this study were all owners of micro, small, and medium enterprises of Coto Makassar typical food totaling 63 units, and as many as 32 units as a sample. Data were analyzed using multiple linear regression using the SPSS version 21 program. The data collection technique used a questionnaire. The results showed that (1) financial knowledge has a positive and significant effect on financial management behavior; (2) financial attitudes have a positive and significant effect on financial management behavior; and (3) personality has a positive and significant effect on financial management behavior. Keywords: financial knowledge; financial attitudes; personality; financial management behavior I. INTRODUCTION performance of Small and Medium Enterprises has shown an increase in the last few years. This shows how the role of In the Indonesian economy, Micro, Small and micro, small and medium enterprises is very dominant in Medium Enterprises are the business groups that have the Indonesia's economic growth. So that the empowerment of largest number. In addition, this group has proven to be micro, small and medium enterprises is something important resistant to various kinds of shocks to the economic crisis. It in an effort to increase economic growth in Indonesia. The is imperative to strengthen micro, small and medium contribution of micro, small and medium enterprises to enterprise groups that involve many groups. The criteria for Gross Domestic Product is an indicator of the importance of businesses that are included in micro, small, and medium micro, small and medium enterprises in increasing economic enterprises have been regulated in a legal umbrella based on growth in Indonesia. law, namely Law Number 20 of 2008. The existence and performance of the increasingly Based on information from the Ministry of Data stretching micro, small and medium enterprises is not Division-Planning Bureau of the State Ministry for without problems and constraints. There are several Cooperatives and Small and Medium Enterprises of the problems, including the financial management behavior of Republic of Indonesia, micro, small and medium enterprises micro, small and medium enterprises. Financial management provide various types of contributions, including the behavior is considered as one of the important concepts in contribution of micro, small and medium enterprises to the discipline of finance. Many definitions are given in national investment creation, Contribution of micro connection with this concept, for example Horne and enterprises, small and medium enterprises to the National Wachowicz in Mien and Thao [1] proposing financial Gross Domestic Product, the contribution of micro, small management behavior as the determination, acquisition, and medium enterprises in the absorption of the national allocation, and utilization of financial resources. While workforce, and the contribution of micro, small and medium overall Weston and Brigham in Mien and Thao [1] describe enterprises to the creation of national foreign exchange. In the behavior of financial management as a financial decision short, it can be concluded that micro, small and medium making, harmonizing individual motives and company goals. enterprises are the main pillars of the Indonesian economy. The role of micro, small and medium business The capacity of micro, small and medium enterprises owners is very dominant in running their business. Business needs to be continuously empowered and developed by owners have full responsibility for the business they run. The trying to overcome the obstacles faced by micro, small and decisions concerning the company are entirely in the hands medium enterprises, so that they are able to contribute more of the owner. So, an owner must be able to overcome and optimally. According to data from the Ministry of solve problems that arise in his company by making the right Cooperatives and Small and Medium Enterprises, the decisions. JHSS is licensed under - 152 - JHSS (Journal of Humanities and Social Studies) Volume 04, Number 02, September 2020, Page 152 - 156 https://journal.unpak.ac.id/index.php/jhss e-ISSN: 2598-120X; p-ISSN: 2598-117X Financial knowledge and a good financial attitude can considerations when applying for credit, such as considering help business owners make the right decisions in their loan interest rates and loan terms. Micro, small and medium business financial management, resulting in good financial business actors should be able to consider various things management behavior. when applying for credit so that they can use credit wisely. Nowadays competition in the business world is In general, the lack of financial knowledge in terms increasingly competitive, a business actor must have the of financial skills is caused by education. Financial ability to maintain the continuity of his business, if the knowledge can be obtained from formal education and business actor does not have the ability to manage his informal sources. This formal education is such as high business, over time the business may experience failure. The school programs or lectures, seminars, and out-of-school ability of business actors to be able to compete must be training classes. Meanwhile, informal sources can be improved, one of which is in terms of financial management obtained from the surrounding environment, such as from and financial management behavior of micro, small and parents, friends and coworkers, as well as those from one's medium enterprises themselves. own experiences. Among the problems of concern for micro, small and There are other problems that affect the financial medium enterprises, especially the typical Coto Makassar management behavior of micro, small and medium food business, are problems related to financial management enterprises, namely the problem of their financial attitudes. behavior, namely the problem of financial knowledge they Most micro, small and medium entrepreneurs have a bad have. Financial knowledge consists of financial skills and attitude about finance, marked by low motivation to continue mastery of financial tools. Ida and Dwinta [2] describe to improve their ability to manage their business finances, financial skills as a technique for making decisions in even though the motivation to continue to improve their financial management behavior, such as preparing a budget, ability in financial management is very important. The poor choosing an investment, choosing an insurance plan, and financial attitude of micro, small and medium entrepreneurs using credit are examples of financial skills. Meanwhile, is also marked by thinking that they are easily satisfied with financial tools are the tools used in making financial existing performance and have not thought about improving management decisions such as checks, credit cards, and their ability in financial management because some business debit cards. actors feel that their performance is good enough and their The problem in terms of financial skills experienced business continues to run smoothly smoothly and without by micro, small and medium enterprises is mainly in obstacles even though micro, small and medium enterprises preparing a budget. Most micro, small, and medium do not make budget planning and financial control. If this entrepreneurs have never prepared a financial budget in their attitude is left unchecked, it will cause the performance of business management, as evidenced by a survey conducted micro, small and medium enterprises to decline and be by Raharjo and Wirjono [3], most micro, small and medium unable to compete competitively in the market. entrepreneurs have never made any bookkeeping related to Makassar is one of the cities in South Sulawesi their business management. Micro, small and medium Province which has a relatively high level of creative entrepreneurs should make bookkeeping related to budget industry development compared to other cities / regencies in planning, implementation, and control in their finances. South Sulawesi. Economic growth in Makassar City is also However, the fact that was found was that the awareness of supported by the activity of micro, small and medium micro, small and medium enterprises to make bookkeeping enterprises (micro, small and medium enterprises) because for business financial management was still very low. The there are many small and medium industrial centers, reason for the low awareness of micro, small and medium including the typical coto Makassar food business. business actors in making budget planning is due to the Coto Makassar is a traditional