THE EFFECT OF FINANCIAL MANAGEMENT, TECHNOLOGY UTILIZATION, AND ACCESS TO CAPITAL ON THE FINANCIAL PERFORMANCE OF MSMEs IN KADEMANGAN DISTRICT, BLITAR REGENCY

Abstract

Micro, small, and medium enterprises (MSMEs) are the backbone of the Indonesian economy, yet many continue to face persistent weaknesses in financial performance caused by poor financial management, low technology adoption, and limited access to capital. This study aims to examine the effect of financial management, technology utilization, and access to capital on the financial performance of MSMEs in Kademangan District, Blitar Regency, both simultaneously and partially. The research employs a quantitative associative approach. The population consisted of 1,953 MSMEs, and a sample of 332 respondents was determined using the Slovin formula with a proportionate stratified random sampling technique. Data were collected through questionnaires measured on a Likert scale and analyzed using multiple linear regression after fulfilling the classical assumption tests. The results show that financial management, technology utilization, and access to capital simultaneously have a significant effect on financial performance (F = 44.101; sig. < 0.05). Partially, financial management and access to capital have a positive and significant effect, whereas technology utilization has no significant effect. The coefficient of determination indicates that the three variables explain 28.1% of the variation in financial performance. The findings imply that strengthening financial management practices and expanding access to capital are priority strategies for improving MSME financial performance, while technology adoption requires accompanying digital-literacy support to become effective.