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Empowering Smes: Exploring the Role of Tax Benefits and Financial Competence in Business Sustainability

Year: 2025

Type: article

Abstract: This study aims to empirically examine the impact of Tax Incentives and Financial Literacy on the Business Sustainability of SMEs. The population in this study consists of SMEs in Lampung Province that are registered as taxpayers. A sampling study determined that a saturated sampling technique was used in non-probability Sampling of 186 SMEs registered as taxpayers in Lampung province. The data collection technique used a questionnaire with multiple regression analysis. The findings reveal that tax incentives and financial literacy have a significant impact on business sustainability. The research highlights that tax incentives help SMEs mitigate the adverse economic impact of crises by improving liquidity and enabling reinvestment in business operations. The study also documented that financial literacy, encompassing an understanding of financial management, including budgeting, cost control, and investment planning, enables SMEs to make informed and strategic financial decisions that support business growth..

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.17541026

Author: Putri, Ayu Melati

Institution: Universitas Malahayati

Language: English

Topic: Financial Literacy and Behavior

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W7104247871

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