ABSTRACT: Micro, Small, and Medium Enterprises (MSMEs) play a significant role in economic development; however, their sustainability is often challenged by limitations in financial management practices and decision-making capabilities. Financial behavior has emerged as an important concept for understanding how MSME owners manage financial resources, make decisions, and respond to business uncertainties. This study aims to systematically review the existing literature on financial behavior in MSME business financial management by identifying major research themes, theoretical foundations, methodological trends, determinants, and future research directions. A Systematic Literature Review (SLR) approach was employed following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA 2020) guidelines. Relevant articles published between 2020 and 2026 were identified and analyzed from reputable academic databases. The findings reveal that financial literacy, financial attitude, financial capability, financial inclusion, and digital financial technology adoption represent the dominant factors influencing MSME financial behavior. Behavioral Finance Theory, Theory of Planned Behavior, Financial Capability Theory, and Resource-Based View are among the most frequently applied theoretical perspectives. The review also identifies that existing studies are predominantly quantitative, while qualitative and longitudinal approaches remain limited. This study contributes by synthesizing fragmented knowledge and proposing future research directions emphasizing integrated theoretical models, digital financial transformation, contextual factors, and sustainable financial management practices. The findings provide valuable implications for researchers, policymakers, financial institutions, and MSME development organizations in strengthening entrepreneurial financial capability and business sustainability.

 KEYWORDS: Financial Behavior; MSMEs; Business Financial Management; Behavioral Finance; Entrepreneurial Finance; Systematic Literature Review; PRISMA.