Does Financial Literacy and Government Support Affect SME Performance? Evidence from Disability-owned SMEs in Yogyakarta

Small and medium-sized enterprises (SMEs) owned and operated by persons with disabilities make a meaningful contribution to inclusive economic development. This study examines how financial literacy and government support affect the performance of disability-owned SMEs in the Special Region of Yogyakarta. A structured questionnaire was administered to 56 SME owners with disabilities, selected through purposive sampling, in a quantitative study. Data analysis was conducted using Structural Equation Modelling with the Partial Least Squares method in SmartPLS. The results show that financial literacy does not have a statistically significant effect on SME performance, whereas government support has a positive and statistically significant effect. The findings identify the potential role of targeted government policies in improving access to capital, training and inclusive policy environments, thereby supporting the productivity and sustainability of businesses owned by persons with disabilities. The paper contributes to the emerging body of literature on inclusive entrepreneurship. It provides helpful case studies for policymakers, development practitioners, and other stakeholders seeking to enhance the entrepreneurial ecosystem for entrepreneurs with disabilities. By highlighting government support in this study, the study calls for a concerted partnership to facilitate inclusive economic participation and the empowerment of persons with disabilities as entrepreneurs.