Ratnawati

Women, as craft business owners, must possess knowledge about financial inclusion and financial stability because it has an impact on business sustainability. This paper aims to test the effect of financial literacy and financial well-being on business sustainability, with digital financial inclusion as a moderating variable. This paper uses 236 female export craft MSME actors in East Java Province. Structural equation modeling (SEM) was used to test the hypotheses. The findings show that financial literacy and financial well-being affect business sustainability. Financial knowledge of MSME actors, both knowledge of debt and bookkeeping with the ability to record finances, impact business sustainability. Financial well-being also contributes to business sustainability with healthy finances and a perception of financial adequacy and financial resources to manage the business. Financial well-being can mediate the influence of financial literacy on business sustainability, where increasing financial well-being is necessary because the role of financial literacy can improve the business sustainability of female MSME actors in East Java. Digital financial inclusion can moderate financial well-being’s influence on business sustainability by using digital products and digital systems. The research findings can be taken into consideration by the government and used as material for policy studies on the importance of mastering digital financial inclusion in the sustainability of MSMEs.

Acknowledgments
Gratitude is extended to the Ministry of Education, Culture, Research, Technology, and Higher Education for providing complete financial support to this research project through a Regular Fundamental Research grant.