Empowering Sustainable Communities through Digital Financial Literacy in The Creative Economy

Abstract

The creative environment has transformed because of the digital economy's explosive growth, particularly for digital artists who now produce, distribute, and monetize their work primarily through online channels. To preserve the financial sustainability of digital art actors, this study aims to investigate how digital financial literacy serves as a supporting element in crowdfunding and microfinance. Two hundred respondents working in various digital art domains, including graphics, music, and non-fungible tokens (NFTs), were surveyed using a quantitative methodology. The study's findings, obtained using the Structural Equation Model (SEM) and SmartPLS software, demonstrated that microfinance has a statistically negligible and detrimental impact on the long-term financial viability of actors involved in digital art. Crowdfunding, on the other hand, significantly improves their financial viability. Furthermore, financial sustainability is positively and significantly impacted by digital financial literacy. The impact of microfinance on the long-term financial viability of digital creative players is mitigated by digital financial literacy. To enhance the resilience of creative professionals in an increasingly digital economy, this study emphasizes the importance of integrating financial education with training in digital skills. The study's practical implications include suggestions for legislators, professionals in the creative sector, and academic institutions to develop targeted initiatives that may enhance the financial viability of digital arts practitioners. To further understand the connection between digital financial literacy and the sustainability of the creative economy, further study is advised that it uses a longitudinal approach and cross-national comparisons.