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This study aimed to analyze the factors that measure the financial knowledge of entrepreneurs in Surabaya. Entrepreneurs with higher financial knowledge will have a growing probability of a successful business. This research was conducted by distributing questionnaires. There are 309 entrepreneurs as the sam-ples who are living, doing business, as well as having financial knowledge about entrepreneurial finance in Surabaya. This study used exploratory factor analysis to identify the relationship between the manifest varia-bles (attributes) or indicator variables to build a construct (factor). The results in this study are the factors that measure the financial knowledge of entrepreneurs in SMEs such as functional financial management sys-tems, funding decisions, business information technology, financial obstacles, financial strength, and risk ma-nagement.

MEASURING THE ENTREPRENEUR S FINANCIAL KNOWLEDGE: EVIDENCE FROM SMALL MEDIUM ENTERPRISES IN SURABAYA