The Effect Of Self Management And Financial Literacy On The Management Of Online Loans By Young Entrepreneursin South Sumatera

Abstract

This study aims to analyze the influence of self-management and financial literacy on the management of online loan funds among young entrepreneurs in South Sumatra Province. The background of this research lies in the increasing use of online lending (financial technology lending) as an alternative source of financing for young entrepreneurs, which often leads to ineffective fund management due to poor self-regulation and low financial literacy. This study employs a quantitative explanatory approach with a population of young entrepreneurs in South Sumatra who have used online loans. A total of 120 respondents were selected using purposive sampling. Data were collected through questionnaires and analyzed using multiple linear regression with SPSS version 26. The results indicate that self-management and financial literacy have a positive and significant effect on online loan fund management, both partially and simultaneously. The coefficient of determination (R²) of 0.512 shows that 51.2% of the variation in online loan fund management can be explained by these two variables, while the remaining 48.8% is influenced by other factors such as financial attitude, business experience, and social influence. The study concludes that self-regulation and financial understanding are key determinants of healthy and productive financial behavior among young entrepreneurs. The findings are expected to serve as a basis for local governments, financial institutions, and fintech providers in developing financial literacy and self-management training programs to encourage responsible and sustainable online loan utilization.