FINANCIAL INCLUSION AS MEDIATING INFLUENCE OF FINANCIAL LITERACY ON PERFORMANCE OF UMKM IN TANGGULANGIN SUB-DISTRICT

MSMEs play an important role in creating jobs, especially in rural and urban areas that have high unemployment rates. However, MSMEs also face several challenges, including limited access to capital, limited knowledge and skills Financial inclusion plays a key role in the performance of MSMEs. Financial inclusion refers to wider aiccess tio finainciail services, such ais bainking, insuraince, aind other financial instruments. TIhis stiudy aims tio detiermine the mediatiing role of financial inclusion on tih e effectiof financial litieracy on MSME performance. TIhis reseairch cain be claissified ais quaintiitiaitiive reseairch using tih e paitih ainailysis metihod. TIhe daitiaicollectiion tiechnique used wais aiquestiionnaiire using ai 5-score Likertiscaile. TIhe populaitiion of tihis stiudy were MSME plaiyers in TIainggulaingin, Sidoairjo Regency who had registered with the cooperative and MSME offices in 2023. TIo detiermine tihe sample tiaken, non-probabilitiy sampling was used, and in tih e sampling metihod Accidential Sampling was used. TIhe number of samples stiudied was 63 respondentis. TIhe resultis showed tihati tihe financial litieracy variable had a negatiive and significantieffection MSME performance, tihe financial litieracy vairiaible haid ai positiive aind significaintieffection finainciail inclusion, aind tihe finain ciail inclusion vairiaible haid aipositiive aind significaintieffection MSME performaince. In tihe intiervening vairiaible, finainciail inclusion hais aipositiive aind significaintieffectiin mediaitiing finainciail literacy on the performance of Tanggulangin sub-district MSMEs.