The Influence of Soft Skills and Hard Skills on Financial Well-being Among SME Owners in Indonesia
Keywords:
Soft Skills, Hard Skills, Financial Well-being, SMEsAbstract
This research aims to analyze the relationship between soft skills and hard skills possessed by MSME (Micro, Small, and Medium Enterprises) owners and their financial well-being. Soft skills, such as communication, adaptability, and emotional intelligence, alongside hard skills, including technical and managerial competencies, are critical factors in enhancing entrepreneurial performance and decision-making. Using a random sampling method, the study collected data from 200 MSME owners across various islands in Indonesia. Hypothesis testing was performed using SPSS software to examine the proposed relationships. The findings reveal that both soft skills and hard skills have a significant positive influence on the financial well-being of MSME owners. Specifically, higher levels of these skills contribute to better financial outcomes, including effective resource management and improved business sustainability. These results underscore the importance of integrating skill development programs into MSME capacity-building initiatives.
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