Prive: Measurement and Validation

Abstract

Prive, or the practice of withdrawing business resources for personal use, is common among small business actors due to a low understanding of financial management, leading to a lack of separation between personal and business finances. To assess this behavior, a questionnaire was developed specifically focused on prive. The research aimed to evaluate the validity and reliability of this questionnaire, which includes five items: taking money or goods for personal use, the impact of these actions on business capital, and the importance of separating business and personal finances. Conducted between December 2023 and April 2024 on 259 business actors in Ternate City, the study involved content validity reviews by three experts—a professor in accounting, a psychological accounting specialist, and an MSME accounting expert. The content validity test yielded positive results for four of the five items, with validity values of 0.560, 0.534, 0.813, and 0.867, respectively. The reliability test showed a Cronbach's alpha value of 0.655 for these valid items, indicating good internal consistency. Consequently, the questionnaire is deemed valid and reliable for addressing small business behaviors related to prive, offering a tool to improve financial management practices.