Financial Management Strategies in Small and Medium Enterprises (SMEs) in Rural Areas: A Qualitative Study in Kuningan

Abstract

Small and Medium Enterprises (SMEs) play a crucial role in Indonesia's economy, particularly in rural areas such as Kuningan Regency. However, many SMEs face challenges in financial management that can hinder their business development. This research aims to analyze the financial management strategies implemented by SMEs in rural areas and identify relevant challenges and solutions. A qualitative approach with an exploratory descriptive research type was used in this study, which involved in-depth interviews and observations of 20 SMEs in Kuningan. The results of the survey indicate that most SMEs in Kuningan manage their finances in a straightforward yet unstructured manner. Many SMEs rely on manual recording or do not record expenses and income regularly. The main challenges faced include limited access to formal financing and low financial literacy. Additionally, the use of technology for financial management remains limited, despite the increasing adoption of digital technology. This study suggests that increasing financial literacy, improving access to financing, and providing training on the use of digital technology can be effective solutions to enhance the efficiency of financial management among SMEs in rural areas.