Financial Management, Accounting Training, and Financial Technology as Determinants of Microenterprise Financial Performance

Abstract

Financial performance is central to the sustainability of microenterprises, yet their ability to achieve favorable financial outcomes may be associated with how effectively financial activities are managed, the accounting training received by business owners, and the utilization of financial technology. This study examined the relationships between financial management, accounting training, financial technology, and the financial performance of microenterprises in Medan Labuhan District, Medan, Indonesia. A quantitative explanatory cross-sectional design was employed involving 100 microenterprise owners selected through simple random sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results showed that financial management was positively and significantly associated with financial performance (β = .308), accounting training demonstrated a positive and significant association with financial performance (β = .331), and financial technology was also positively and significantly associated with financial performance (β = .226). Among the three predictors, accounting training showed the largest path coefficient in the structural model. Collectively, financial management, accounting training, and financial technology explained 54.7% of the variance in microenterprise financial performance (R² = .547), while 45.3% of the variance remained unexplained by the model. The Q²predict value of .521 further indicated predictive relevance for the endogenous construct. These findings provide context-specific evidence that financial management, accounting training, and financial technology utilization are relevant to explaining microenterprise financial performance, with accounting training showing the strongest relative association within the examined structural model.