The Influence of Financial Management on the Profitability of Msmes in Cirebon City
DOI:
https://doi.org/10.38035/gijtm.v3i2.448Keywords:
Financial, Management, MSME Financial ManagementAbstract
This study aims to analyze the influence of financial management on the profitability of Micro, Small, and Medium Enterprises (MSMEs) in Cirebon City during the 2020–2023 period. The research uses a quantitative approach with a survey method through a structured questionnaire involving 50 MSMEs from various business sectors, such as trade, services, culinary, and handicrafts. Financial management variables are measured through three main dimensions, namely cash flow recording, budget planning, and debt management, while profitability is measured based on net profit margin. The results of the analysis show that financial management has a significant positive influence on profitability, with a regression coefficient of 2.1 and a determination value (R²) of 0.68. The implementation of good cash flow recording is the most prominent dimension, while budget planning and debt management still require more attention. The culinary sector recorded the highest net profit margin of 20%, while the handicraft sector had the lowest profitability of 10% due to limitations in managing external funding. This research highlights the importance of increasing financial literacy and the use of technology to support MSMEs financial management. In addition, access to low-interest funding and intensive financial training from local governments is expected to help MSME actors improve their performance and competitiveness. This finding provides strategic insights for business actors and policymakers to support the sustainability of MSMEs, especially in Cirebon City.
References
Apriliani, S., & Rahmat, T. (2024). The Influence of Financial Technology on the Efficiency of MSME Financial Management. Journal of Management and Finance, 12(1), 45–55.
Corliana, A., & Mustika, R. (2024). Analysis of the Impact of the COVID-19 Pandemic on MSME Income in Cirebon City. Journal of Local Economics, 9(2), 78–88.
Dharma, A., Setiawan, R., & Pratama, D. (2024). MSME Sustainability Strategy Through Structured Financial Management. Journal of Economics and Business, 18(3), 101–112.
Ministry of Cooperatives and MSMEs. (2023). Annual Report on National MSME Performance 2023. Jakarta: Ministry of Cooperatives and MSMEs.
Tabroni, H., Wijaya, R., & Permana, A. (2023). Resilience of MSMEs in the Midst of the Global Economic Crisis: A Case Study of Cirebon City. Journal of Strategic Management, 7(4), 67–75.
Cirebon City Cooperatives and MSMEs Office. (2023). Cirebon City MSME Performance Report in 2023. Cirebon: Cirebon City Cooperatives and MSMEs Office.
Andriani, N., & Wijaya, A. (2023). Financial Literacy and Its Influence on the Growth of MSMEs. Journal of Microeconomics, 5(2), 88–95.
Astuti, P., & Prasetyo, R. (2022). The Role of Digitalization in Improving the Operational Efficiency of MSMEs in Indonesia. Journal of Business Innovation and Management, 10(1), 123–132.
Basri, F. (2021). Indonesia's Economy in the Midst of the COVID-19 Pandemic: Challenges and Opportunities. Jakarta: Gramedia Publishers.
Gunawan, T., & Sari, M. (2023). The Role of Financial Training in Improving the Performance of MSMEs. Journal of Local Economic Development, 7(3), 56–64.
Halim, S. (2020). Financial Management for MSMEs: Theory and Practice. Surabaya: Erlangga Publishers.
Hermawan, I., & Cahyadi, E. (2023). Analysis of Factors Affecting the Success of MSMEs in Indonesia. Journal of Economics and Finance, 15(4), 112–124.
Irwanto, D. (2024). Challenges of MSMEs in the Era of Digitalization and Globalization. Journal of Innovation and Technology, 8(2), 87–98.
Cashmere. (2021). Financial Management. Jakarta: PT Raja Grafindo Persada.
Novitasari, D. R., Budianto, E., & Dhevyanto, B. (2022). ANALYSIS OF FINANCIAL PERFORMANCE BASED ON FINANCIAL RATIOS AT PT. SEMEN BATURAJA Tbk. Journal of Economics, Accounting & Management, 2(3), 409-425.
Suryani, N., & Anggraeni, T. (2023). MSME Strategies in Overcoming the Economic Crisis: A Case Study of Cirebon City. Journal of Regional Economics, 11(1), 75–84.
Wibisono, S., & Lestari, R. (2022). Innovation and Sustainability of MSMEs: A Local Economic Perspective. Journal of Economic Development, 9(3), 102–110.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Rizki Purnama Putra, Dhea Setyaji , Benny Dhevyanto, Krisdiyana

This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright :
Authors who publish their manuscripts in this journal agree to the following conditions:
- Copyright in each article belongs to the author.
- The author acknowledges that the Greenation International Journal of Tourism and Management (GIJTM) has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
- Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJTM.