The Role of Financial Management in Improving The‎Sustainability of Agricultural Micro Enterprises in ‎Disadvantaged Areas

  • Authors

    • Ike Susanti Universitas Islam Lamongan, Indonesia
    • Sihabudin Universitas Buana Perjuanagan Karawang, Indonesia
    • I Gusti Ngurah Agung Wiryanata Politeknik Pariwisata Bali, Indonesia
    • Loso Judijanto IPOSS Jakarta, Indonesia
    https://doi.org/10.14419/vzrnm914

    Received date: August 9, 2025

    Accepted date: October 12, 2025

    Published date: December 14, 2025

  • Financial Management; Agricultural Micro-Enterprises; Sustainability; Financial Literacy; Disadvantaged Areas

  • Abstract

    This study examines the role of financial management in enhancing the sustainability of agricultural micro-enterprises in disadvantaged ‎areas. The objective is to identify key financial management practices that contribute to the long-term viability of these enterprises and ‎understand the barriers that hinder the effective adoption of such practices. Given the challenges faced by smallholder farmers, including ‎limited access to financial services and fluctuating environmental conditions, this research addresses a critical gap in literature on how ‎financial strategies can support sustainable development in rural economies. A qualitative approach was employed through a systematic ‎literature review, analyzing various case studies and peer-reviewed articles related to financial management in agricultural micro-enterprises. ‎Data was collected from a range of academic sources, including journals, reports, and case studies, and analyzed using thematic analysis to ‎identify common patterns and insights. The findings reveal that effective financial management practices, such as budgeting, cash flow ‎management, and financial literacy, significantly enhance the profitability and resilience of agricultural micro-enterprises. Key statistics show ‎that enterprises with proper cash flow management experienced a 20-30% increase in profitability, and 80% of businesses involved in ‎financial literacy programs reported a 15% increase in profit margins. However, barriers such as financial literacy gaps and limited access to ‎formal credit remain significant challenges. The study contributes to the theoretical understanding of financial management in small-scale ‎agriculture and offers practical insights for policymakers and financial institutions to improve support for these enterprises. The research ‎emphasizes the importance of financial management in promoting sustainability within agricultural micro-enterprises. The findings suggest ‎that improving financial literacy and access to credit, alongside tailored financial products, can significantly enhance the resilience of these ‎businesses. Future research could further explore the role of digital financial tools and climate-risk management in supporting the financial ‎stability of agricultural micro-enterprises‎.

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  • How to Cite

    Susanti, I. ., Sihabudin, Wiryanata, I. G. N. A. ., & Judijanto, L. . (2025). The Role of Financial Management in Improving The‎Sustainability of Agricultural Micro Enterprises in ‎Disadvantaged Areas. International Journal of Accounting and Economics Studies, 12(8), 380-387. https://doi.org/10.14419/vzrnm914