Digital Financial Literacy and Financial Well-Being Among MSMEs: A Multi-Group Analysis and Implications for Higher Education Finance

Background/purpose. The digital transformation of the financial system has reshaped not only the practices of Micro, Small, and Medium Enterprises (MSMEs) but also the educational needs of students preparing for future entrepreneurship. This study aims to analyze the differences in the influence of key factors, Digital Financial Literacy, Entrepreneurial Orientation, and Managerial Attributes, on the Financial Well-Being of MSMEs based on business scale (micro, small, and medium enterprises). The study also considers Perceived Regulatory Support as a moderating variable and Fintech Proficiency as a mediating variable.

Materials/methods. This study employs a quantitative approach involving 295 respondents selected from 1,129 MSMEs fostered by Bank Indonesia across 33 provinces. Data analysis was conducted using the Multi-Group Analysis (MGA) approach to explore structural differences among business scale groups.

Results. The results of the Multi-Group Analysis (MGA) indicate structural differences among MSME groups. In the micro-enterprise group, Digital Financial Literacy emerged as the primary factor directly influencing financial well-being. In the small-enterprise group, Managerial Attributes and Fintech Proficiency were identified as the dominant factors. Meanwhile, in the medium-enterprise group, Financial Well-Being was more strongly influenced by Fintech Proficiency and Entrepreneurial Orientation.

Conclusion. The findings emphasize the importance of designing tiered and contextual empowerment strategies for MSMEs, focusing on literacy, managerial capacity, and technology adoption. Importantly, the results also offer pedagogical implications: strengthening students’ digital financial literacy, managerial skills, and entrepreneurial orientation in higher education can equip them to thrive in an increasingly digital financial ecosystem.

Keywords: Digital financial literacy, entrepreneurial orientation, financial well-being, higher education finance, financial education

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