This study aims to analyze the effect of financial management on product value-added within the concept of marine circular economy among coastal SMEs in Tarano District. This research employed a quantitative approach using a survey method. The research data were collected through questionnaires distributed to 50 coastal SME owners engaged in marine product processing businesses. The data analysis techniques included validity testing, reliability testing, classical assumption testing, simple linear regression analysis, t-test, and coefficient of determination (R²) using SPSS software.

The results showed that financial management has a positive and significant effect on product value-added. This was evidenced by the t-test results, which indicated a significance value of 0.000 < 0.05 and a regression coefficient value of 0.658. In addition, the coefficient of determination (R²) value of 0.547 indicated that financial management was able to explain 54.7% of the influence on product value-added, while the remaining percentage was influenced by other variables outside the study. Good financial management can improve production cost efficiency, support product innovation, and encourage the utilization of marine waste into value-added products in accordance with the marine circular economy concept.

Therefore, this study demonstrates that financial management plays an important role in supporting product value-added and the sustainability of coastal SMEs in Tarano District.