FINANCIAL ACCOUNTABILITY OF UMKM: DEVELOPMENT STRATEGY TO SUPPORT NATIONAL ECONOMIC GROWTH

Abstract

Financial accountability plays a strategic role in the development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This study aims to evaluate the level of financial accountability in the MSME sector and identify challenges and opportunities in its implementation. Using a literature study method, the study analyzed various literature related to MSME financial management. The results of the study revealed that the majority of MSMEs in Indonesia still face significant obstacles in financial accountability. Lack of financial literacy is the main factor, with OJK data (2022) showing that less than 40% of MSMEs have adequate financial records. The main challenges include manual financial recording, limited understanding of accounting, and difficulty accessing formal funding. The conclusion of the study emphasizes that good financial accountability is not only important for the sustainability of individual businesses but also contributes significantly to national economic growth. The development of financial literacy and the adoption of modern technology are the main keys to empowering the MSME sector in Indonesia.