Tax Incentives and MSME Growth: Empirical Evidence from Indonesian Small Businesses

Penulis

  • Loso Judijanto IPOSS Jakarta, Indonesia
  • Ahmad Junaidi Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Bengkulu
  • Azimah Hanifah Universitas Muhammadiyah Jakarta
  • Junet Kaswoto Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Tangerang
  • Inneke Respatiningsih Universitas Faletehan

DOI:

https://doi.org/10.58812/jmws.v5i05.3404

Kata Kunci:

Tax Incentives, Financial Literacy, MSME Growth, Indonesia, Quantitative Analysis

Abstrak

This study investigates the impact of tax incentives and financial literacy on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative approach was employed, surveying 175 MSME owners using a Likert scale questionnaire. The data was analyzed using SPSS version 25, with descriptive statistics, correlation analysis, and multiple regression analysis conducted to examine the relationships between the independent variables (tax incentives and financial literacy) and the dependent variable (MSME growth). The results show that both tax incentives and financial literacy positively affect MSME growth, with financial literacy having a slightly stronger influence. Tax incentives provide financial relief, enabling MSMEs to reinvest in their businesses, while financial literacy equips business owners with the knowledge needed to make informed decisions. The study highlights the importance of integrating tax incentive awareness and financial literacy programs to promote sustainable growth and competitiveness in MSMEs. Policy recommendations include simplifying tax procedures, increasing awareness of available incentives, and enhancing financial education programs for MSME owners.

Referensi

Appah, E., & Duoduo, G. (2023a). Determinants of tax compliance behaviour and sustainable economic growth among MSMEs in Nigeria. International Journal of Development and Economic Sustainability, 11(3), 70–105.

Appah, E., & Duoduo, G. (2023b). Determinants of Tax Compliance Behaviour and Sustainable Economic Growth Among MSMEs in Nigeria. International Journal of Development and Economic Sustainability, 11(3), 70–105.

Ardhi, M. K., & Mulyo, J. H. (2021). How does entrepreneurial orientation affect the business performance of coffee shop MSMEs in Indonesia? E3S Web of Conferences, 306, 3011.

Darmayasa, I. N., Utami, N. W. D. W., & Mandia, I. N. (2021). The Embodiment Of Voluntary Compliance Through Understanding Of Msmes Tax Compliance Perception. Assets: Jurnal Akuntansi Dan Pendidikan, 10(1), 63–72.

Djoewita, D., Handayati, P., & Maharani, S. N. (2024). Peranan Financial Technology dan Literacy Keuangan Untuk Meningkatkan Kinerja Keuangan UMKM di Wilayah Malang. AKUNTANSI 45, 5(1), 11–29.

Fauzan, T. R., & Syara, A. S. (2025). Integrating Supply Chain Risk Management and Organizational Agility in Post-pandemic Era: A Pathway to Superior MSMEs Performance in Indonesia. TRANSEKONOMIKA: AKUNTANSI, BISNIS DAN KEUANGAN, 5(1), 265–279.

Fitrayanto Nugraha, W., Hardjomidjojo, H., & Sarma, M. (2023). Risk Assessment of MSME Credit Process Digitalization Program of PT Bank XYZ West Sumatra Region. International Journal of Research and Review, 10(6), 361–371. https://doi.org/10.52403/ijrr.20230644

Granfon, J. A., Lagare, W. N. J. D., Aling, D. A., Dangcalan, N. B. D., & Ebanay, A. A. (2023). Factors Affecting Tax Compliance of MSMEs in Dipolog City. International Journal of Multidisciplinary: Applied Business and Education Research, 4(4), 1350–1364.

Gusti, G. P., & Kuswardani, A. (2021). The Role Of Attitude To Money In Mediating The Relationship Between Knowledge Management And Financial Performance: A Study Of Msmes Using Ecommerce And Nonecommerce In The City Of Pontianak–Indonesia. Malaysian E Commerce Journal (MECJ), 5(2), 72–76. https://doi.org/10.26480/mecj.02.2021.72.76

Heliani, H., & Iskandar, Y. (2024). MSMEs Financial Sustainability Model in Indonesia: Policy, Capital, Literacy, Structure. Jurnal Reviu Akuntansi Dan Keuangan, 14(1), 258–280. https://doi.org/10.22219/jrak.v14i1.29716

Irmayani, N. W. D., Sepriyadi, A. P., Junitasari, P. D. K., & Prihantari, G. A. P. E. D. (2023). The Influence of Tax Incentives and Financial Conditions on Tax Compliance Registered at KPP Pratama Tabanan. International Journal of Integrative Sciences, 2(4), 421–442.

Klapper, L., & Lusardi, A. (2020). Financial literacy and financial resilience: Evidence from around the world. Financial Management, 49(3), 589–614.

Lajuni, N., Wellfren, A. C., & Samsu, S. H. (2022). Financial Literacy/Knowledge Through Financial Education: A Bibliometric Analysis. Labuan Bulletin of International Business and Finance (LBIBF), 20(2), 66–80.

Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358–380.

Maswin, M., & Sudrajad, O. Y. (2023). Analysis of Financial Indicator Literacy Determinants on The Performance of Bandung City SMEs. International Journal of Current Science Research and Review, 06(06), 3792–3804. https://doi.org/10.47191/ijcsrr/v6-i6-68

Oppong, C., Salifu Atchulo, A., Akwaa-Sekyi, E. K., Grant, D. D., & Kpegba, S. A. (2023). Financial literacy, investment and personal financial management nexus: Empirical evidence on private sector employees. Cogent Business & Management, 10(2), 2229106.

Rohila, S., Norisanti, N., & Danial, R. D. M. (2024). Analisis Financial Literacy dan Financial Inclusion Terhadap Business Sustainability Melalui Financial Behavior Sebagai Variabel Mediasi Pada Pelaku UMKM Minuman Di Kota Sukabumi. Journal of Economic, Bussines and Accounting (COSTING), 7(4), 8579–8587.

Saptono, P. B., Khozen, I., Mahmud, G., Hodžić, S., Pratiwi, I., Purwanto, D., & Imantoro, L. W. (2024). Flourishing MSMEs: The role of innovation, creative compliance, and tax incentives. Journal of Risk and Financial Management, 17(12), 532.

Sembiring, S. R. N. (2022). Financial Literacy Impact on Small-Medium Enterprises Development and Sustainability in Indonesia. Asian Journal of Accounting and Finance, 4(4), 21–35.

Song, B., Chung, H., Kim, B. J., & Sonu, C. H. (2023). Do business trainings for audit committees matter in organizations? Focusing on earnings management. Finance Research Letters.

Wardani, D. K., & Rosita, V. B. (2022). PENGARUH PENGETAHUAN KORUPSI TERHADAP KEPATUHAN WAJIB PAJAK UMKM DENGAN PATRIOTISME SEBAGAI VARIABEL MODERASI (STUDI KASUS PADA UMKM DI KABUPATEN BANTUL). Journal of Innovation Research and Knowledge, 1(11), 1439–1448.

Widyaningsih, I. U. (2023). PENERAPAN TEKNOLOGI FINANSIAL SEBAGAI INOVASI UNTUK MENINGKATKAN LITERASI KEUANGAN UMKM. Indonesian Journal of Economy, Business, Entrepreneurship and Finance, 3(3 SE-Articles), 437–446. https://doi.org/10.53067/ijebef.v3i3.116

Wijanarko, K. N., & Saraswati, E. (2024). Pengaruh insentif pajak, sistem perpajakan digital, dan digitalisasi bisnis terhadap peningkatan kepatuhan pajak UMKM di era new normal. Telaah Ilmiah Akuntansi Dan Perpajakan, 2(4), 714–728.

Unduhan

Diterbitkan

2026-05-12

Terbitan

Vol 5 No 05 (2026): Jurnal Multidisiplin West Science

Bagian

Artikel

Lisensi

Hak Cipta (c) 2026 Loso Judijanto, Ahmad Junaidi, Azimah Hanifah, Junet Kaswoto, Inneke Respatiningsih

Creative Commons License

Artikel ini berlisensiCreative Commons Attribution-ShareAlike 4.0 International License.

Cara Mengutip

Tax Incentives and MSME Growth: Empirical Evidence from Indonesian Small Businesses. (2026). Jurnal Multidisiplin West Science, 5(05), 842-853. https://doi.org/10.58812/jmws.v5i05.3404