MEASURING THE ENTREPRENEUR�S FINANCIAL KNOWLEDGE: EVIDENCE FROM SMALL MEDIUM ENTERPRISES IN SURABAYA

This study aimed to analyze the factors that measure the financial knowledge of entrepreneurs in Surabaya. Entrepreneurs with higher financial knowledge will have a growing probability of a successful business. This research was conducted by distributing questionnaires. There are 309 entrepreneurs as the samples who are living, doing business, as well as having financial knowledge about entrepreneurial finance in Surabaya. This study used exploratory factor analysis to identify the relationship between the manifest variables (attributes) or indicator variables to build a construct (factor). The results in this study are the factors that measure the financial knowledge of entrepreneurs in SMEs such as functional financial management systems, funding decisions, business information technology, financial obstacles, financial strength, and risk management.