Strategies for Increasing Self-Confidence in Financial Management Through Behavior: Predictors of Financial Prosperity of Creative Industrial Craft Exporters Malang Indonesia

Abstract

The involvement of Small and Medium Industries (IKM) in the national economy gives rise to challenges, including issues with human resource capacity, ownership, financing, marketing, and several other concerns about business management, hence impeding SMEs’ access to resources. Financial conduct pertains to an individual’s approach, administration, and utilization of financial assets. This study seeks to investigate and assess the financial well-being of small and medium-sized enterprise (SME) owners in the craft industry, specifically focusing on their financial behavior and self-efficacy. The research to be conducted is explanatory. The Structural Equation Model with Sobel is employed as a mediation test analytical technique. The research findings indicate that financial self-efficacy has an impact on financial behavior. The financial conduct of small and medium enterprises (SMEs) or micro, small, and medium enterprises (MSMEs) directly impacts their financial welfare. The financial behavior of small and medium industry participants, or MSMEs, can act as a mediator in determining the impact of financial Self Efficacy on their financial well-being.