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This research aims to identify the economic literacy of entrepreneurs managing small and medium enterprises (UMKM) by analyzing the influence of connectivity, technological advances, users, knowledge of economy, and innovation on digitalization. Quantitative method comprising questionnaire as its sampling technique was employed. The samples in this research were 120 small and medium enterprises. The data collected through questionnaire were analyzed by using Partial Least Square (PLS) analysis. Based on the research findings, both connectivity and users positively and significantly influence digitalization. Meanwhile, technological advances, knowledge of economy, and innovation positively but insignificantly influence small and medium enterprises digitalization. The researchers suggest other researchers to develop certain design or model that nurture and improve the economic literacy of entrepreneurs managing small and medium enterprises. Keywords— digitalization; small and medium enterprises; SMEs; industrial revolution 4.0.

The Digital Economic Literacy of Entrepreneurs Managing Small and Medium Enterprises in the Era of Industrial Revolution 4.0