| Summary: | The study of financial literacy and locus of control in the creative economy is a relatively new area of research. However, there is a growing body of evidence that suggests that these factors can have a significant impact on the performance of businesses in this sector. Therefore, the purpose of this study is to determine if training, locus of control, and financial literacy have a direct influence on the performance of creative MSMEs; and to determine whether training has an indirect effect on the performance of creative MSMEs through financial literacy. A convenience sample of 115 respondents served as the study's main source of data in the municipality (Yogyakarta) and four regencies (Sleman, Bantul, Kulonprogo, Gunung Kidul). The data were analyzed using SPSS 22, path analysis and Sobel's test. The results revealed that training, the internal position of control, and financial literacy positively affected performance. However, the position of the external control did not affect the performance. In addition, the training had a positive effect on financial literacy and affected performance through financial literacy. These results indicate that financial understanding, training and individual self-perception have become critical elements to enhance company performance because they enable actors to manage their businesses according to objectives.
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