Track: Business Management

Abstract

The rapid change in the business environment emphasizes the company to adapt faster to advance toward sustainable development. Although SMEs significantly contribute to the Gross Domestic Product in Indonesia, in terms of managing the business, a previous study showed that many SMEs continue to use the traditional approach, especially in the financial management aspects, so they are prone to failure. This study tries to explore the presence of financial management practice at SMEs in Indonesia which data are taken from 216 SMEs owners or managers. The study was conducted with the qualitative method with the in-depth interview approach through an online platform from January to April 2022. Results showed that present SMEs in Indonesia have better financial management practices that can be seen from 1) most SMEs have already recorded their financial report, 3) Most SMEs have moderate to high levels of financial literacy, and 3) their overall performance somewhat increases rather than previous years.