THE EFFECTS OF SELF-EFFICACY, ISLAMIC HUMAN CAPITAL, AND FINANCIAL LITERACY ON SME PERFORMANCE IN LAMONGAN EAST JAVA, INDONESIA

The fishery sector has made important economic contributions to the island nation of Indonesia. In particular, small- and medium-sized enterprise (SME) fisheries, the owners of which are mostly Muslims with high school educations, have exhibited high self-confidence and effective development. However, the effects of other factors, such as self-efficacy, islamic human capital, and financial literacy, on SME performance have yet to be discussed in detail. Thus, this quantitative study examines the effects of self-efficacy, Islamic human capital and financial literacy on 31 SMEs in Lamongan, East Java. According to the results, self-efficacy had a significant effect on SME performance, whereas both Islamic human capital and financial literacy did not have an impact on such performance.