Financial Technology and Business Performance among Small Medium Enterprises (SMEs) in Indonesia

Business performance is one of the most significant metrics when it comes to hitting the targets
set by business owners. Business performance refers to how well a company performs at a
given time based on its activities. Micro, Small, and Medium Enterprises have become a
driving force of economic activity both in the creation of employment opportunities, but also
as an integral growth of business local economic and community empowerment, the generator
of new markets, as well as the source of innovation. The share of SMEs is much bigger than
the share of large enterprises. Small and Medium enterprises (SMEs) have helped generate job
creation, create a gross domestic product, and offer a safety net mainly for low-income
individuals to participate in productive economic activities. Competitive SMEs generally
contribute towards improving the economy of the state as well as contributing to the
development of the global economy. In addition, the operation of financing services is
significantly improved for SMEs by using financial technology (Fintech), which enhances the
scalability and accessibility of financial services. Fintech solutions for SMEs include digital
payments and peer-to-peer lending.