EMPOWERING SMES: EXPLORING THE ROLE OF TAX BENEFITS AND FINANCIAL COMPETENCE IN BUSINESS SUSTAINABILITY

This study aims to empirically examine the impact of Tax Incentives and Financial Literacy on the Business Sustainability of SMEs. The population in this study consists of SMEs in Lampung Province that are registered as taxpayers. A sampling study determined that a saturated sampling technique was used in non-probability Sampling of 186 SMEs registered as taxpayers in Lampung province. The data collection technique used a questionnaire with multiple regression analysis. The findings reveal that tax incentives and financial literacy have a significant impact on business sustainability. The research highlights that tax incentives help SMEs mitigate the adverse economic impact of crises by improving liquidity and enabling reinvestment in business operations. The study also documented that financial literacy, encompassing an understanding of financial management, including budgeting, cost control, and investment planning, enables SMEs to make informed and strategic financial decisions that support business growth..