Abstract:
This study examines The Role of Financial Literacy, Government Support, and
Fintech Adoption in Improving Access to Finance and Economic Performance in
Indonesia’s Traditional Markets. Traditional market vendors face unique
challenges, including limited financial literacy and difficulty accessing financial
services, which impede their business performance. Utilizing a quantitative
research method and Partial Least Squares-Structural Equation Modeling (PLS-
SEM), this study analyzes data collected from 150 vendors through structured
questionnaires. The findings reveal that financial literacy significantly improves
access to finance and fintech adoption, which in turn enhances economic
performance. Fintech adoption plays a critical mediating role by bridging the gap
between financial literacy and financial management behavior. Additionally,
government support significantly impacts fintech adoption, emphasizing the
importance of regulatory and educational interventions. This study highlights the
need for targeted financial literacy programs and the integration of fintech tools to
empower vendors, fostering sustainable economic growth. Future research could
expand geographical coverage, incorporate longitudinal data, and explore
additional variables such as entrepreneurial characteristics and market dynamics.
