Identifying The Optimal Product Strategy By Applying Portfolio Segmentation Methods – Case Of Smes In Banking Sector

2014 ◽  
Vol 1 (1) ◽  
pp. 121-126
Author(s):  
Simona - Mihaela Nămolosu ◽  
Iuliana Cetină
Keyword(s):  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Distribution Channel ◽  
High Potential ◽  
Small Companies ◽  
Market Segments ◽  
Motivational Systems ◽  
Potential Market ◽  
Segmentation Methods ◽  
Medium Enterprises

AbstractSmall and Medium Enterprises (SMEs) are a high potential target for banks to attack, but also a risky segment; high potential because the need for financing is increasing, but risky because the crisis affected a lot the solvability and profitability of these companies. On the other hand, loan facilities are some of the most complex banking products (if we analyse diverse financing needs of small companies, but rather due to the analysis and approval processes in banks). In defining strategic alternatives for financing products for SMEs, the following steps are essential: evaluating potential market segments and/or sub segments, always focusing on the general and particular commercial objectives of the bank, analysing the strategies used by the major competitors and last, but not least: developing motivational systems for the employees of the branches - the main distribution channel for a banking product.

scholarly journals FINTECH SEBAGAI SALAH SATU SOLUSI PEMBIAYAAN BAGI UMKM

AdBispreneur ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 89
Author(s):  
Muhamad Rizal ◽  
Erna Maulina ◽  
Nenden Kostini
Keyword(s):  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Peer To Peer ◽  
The Other ◽  
Financial Resources ◽  
Financial Industry ◽  
Loan Fund ◽  
Classic Problem ◽  
Peer Lending ◽  
Medium Enterprises

ABSTRACTIn 2017, more than 40 new fintech businesses is born, this financial business have emerged that have tried their luck in the Indonesian financial landscape along with the other 140s of startup that have stood before. Indonesia's fintech industry has become one of the prima donna that attracted so much attention from the financial industry actors. Investment on startup fintech began to attract a lot of interest, even some startup managed to get series A of investment this year. The fintech sectors are beginning to develop and many new products are launched.Meanwhile, the Ministry of Cooperatives and Small and Medium Enterprises (Ministry of Small and Medium Enterprises) launched 3.79 million micro, small and medium enterprises (SMEs) already utilizing online platform in marketing their products. This number is around 8 percent of the total perpetrators of SMEs in Indonesia, which is 59.2 million.The problem of sources of financing is a classic problem that is a barrier to the growth of SMEs who do not get financing facilities from the banking sector. Lack of financial resources makes SMEs unable to develop innovations to increase production. However, the rapid growth of financing business of fintech, such as peer-to-peer lending can now be another alternative for loan fund raisers. peer-to-peer lending is a financing business that targets the middle to lower market sectors  ABSTRAKSepanjang tahun 2017, setidaknya muncul lebih dari 40 bisnis fintech baru yang mencoba peruntungan di lanskap keuangan Indonesia bersama dengan 140-an startup lain yang telah berdiri sebelumnya. Industri fintech Indonesia memang menjadi salah satu primadona yang menarik perhatian begitu besar dari para pelaku industri keuangan. Investasi pada startup fintech mulai banyak diminati, bahkan beberapa startup berhasil mendapatkan investasi seri A di tahun ini. Sektor-sektor fintech mulai berkembang dan produk-produk baru banyak diluncurkan.Sementara itu, Kementerian Koperasi dan Usaha Kecil Menengah (Kemenkop UKM) melansir sebanyak 3,79 juta usaha mikro, kecil, dan menengah (UMKM) sudah memanfaatkan platform online dalam memasarkan produknya. Jumlah ini berkisar 8 persen dari total pelaku UMKM yang ada di Indonesia, yakni 59,2 juta.Masalah sumber pembiayaan merupakan masalah klasik yang menjadi penghambat pertumbuhan UMKM yang tidak mendapat fasilitas pembiayaan dari sektor perbankan. Kurangnya sumber dana menjadikan UMKM tidak dapat mengembangkan inovasi untuk meningkatkan produksinya. Namun demikian pesatnya pertumbuhan bisnis pembiayaan FinTech seperti peer-to-peer lending  sekarang ini bisa menjadi alternatif lain bagi para pencari dana pinjaman. peer-to-peer lending merupakan bisnis pembiayaan yang menyasar sektor  pasar menengah ke bawah.

Coalitions within the Egyptian Banking Sector: Catalysts of the Popular Revolution

2012 ◽  
Vol 14 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Monal A. Abdel-Baki
Keyword(s):  
Income Distribution ◽  
Banking Sector ◽  
Negative Impact ◽  
Small And Medium Enterprises ◽  
Political Stability ◽  
Soft Budget Constraint ◽  
Egyptian Revolution ◽  
Public Firms ◽  
The Masses ◽  
Medium Enterprises

Among the triggers of the Egyptian Revolution are the sentiments of resentment against the convoluted alliances between private businesses and policymakers that deprived the masses of their fair share of the high GDP growth. But does this indictment extend to the Egyptian banking sector? Based on a field survey and a dataset of 3218 business loans made by 33 banks during 1999–2010, this research differentiates between growth catalysts and crony coalitions within the Egyptian banking sector. The results of the Generalized Estimating Equations reveal that preferential lending to politically-connected businesses has a negative impact on employment and income distribution. Loans to small and medium enterprises and public firms help enhance income distribution and job generation, albeit that the soft-budget constraint on loans to public firms deters growth. The paper presents some policy recommendations that could help exorcise patrimonialism and clientelism and enhance growth alliances within the sector that controls most of the credit flow in the Egyptian economy. The study is not only of grave importance to the Egyptian nation whose members are actively engaged in refurbishing its institutional framework, but is of equal significance to other emerging economies that are keen to install equity, political stability and socioeconomic prosperity.

scholarly journals Microfinance Credit Accessibility and Financial Performance of Small and Medium Enterprises in Machakos County, Kenya

2020 ◽  
Vol 4 (1) ◽  
pp. 71
Author(s):  
Muema Joseph Munguti ◽  
Lucy Wamugo
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Small Population ◽  
Financial Access ◽  
Income Ratio ◽  
Medium Enterprises ◽  
Positive Effect

SMEs in Machakos County have been characterized by poor financial performance which has been linked to financial access. Financial access is one of the keys that drive the development of SME in the country, particularly access to bank financing since banking sector plays a key role in serving this segment. This study specifically sought to determine the influence of collateral security, loan-income ratio and geographical branch penetration on financial performance of SMEs. Study adopted census survey due to small population size. Respondents were supplied with semi-structured questionnaires with aim of getting their views regarding financial accessibility and SME performance. Findings of the study indicated that collateral security, loan-income ratio, and geographical branch penetration has a significant positive effect on financial performance in Machakos County, Kenya. This research recommends that SME’s should improve their core capital, strengthen their financial management practices, foster financial innovation, and literacy within firms.

scholarly journals Efforts to Increase Marketing Performance of Small and Medium Enterprises in Central Java, Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 11-19
Author(s):  
Mudiantono Soekirman ◽  
Fajar Ayu Suryani
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Distribution Channel ◽  
Equation Model ◽  
Marketing Performance ◽  
Central Java ◽  
Medium Enterprises

Business competition in the current era of globalization requires companies to have a strategy to win the market. Strategic management has an important role for the survival of the company. The existence of such competition is also felt by small businesses such as Small and Medium Enterprises (SMEs). The increase in the number of SME units in Central Java was not followed by an increase in average sales of SMEs. This study aims to analyze the effect of distribution channel, ERP implementation and entrepreneurial orientation on marketing performance with competitive advantage as an intervening variable. The population in this study were small and medium enterprises owners in Central Java. Six hypothesis were formulated for this study. To test those hypothesis, this study used 104 respondent. Structural Equation Model (SEM) was applied to this study using AMOS 24  as a tool. The results of this study shows that competitive advantage is the most variable in influencing the marketing performance, while this  competititve advantage has entrepreneurial orientation as highest variable in influencing it. This study suggests that if SMEs want to increase their marketing performance, they must increase  their competitive advantage. This competitive advantage can be increase by increasing the entrepreneurial orientation.

Recent trends in Islamic banks’ lending modes in Bangladesh: an evaluation

2016 ◽  
Vol 7 (1) ◽  
pp. 28-41 ◽  
Author(s):  
Yasushi Suzuki ◽  
S. M. Sohrab Uddin
Keyword(s):  
Paradigm Shift ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Theory And Practice ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Recent Trends ◽  
Conventional Banks ◽  
Medium Enterprises

Purpose – This paper aims to assess recent trends in lending modes and to address the reasons for and consequences of changes in Bangladesh’s Islamic banking sector. Design/methodology/approach – Theoretical discourse is used to generate an underpinning for the issues covered by the study. In addition, empirical evidence from the banking sector, including the information derived from interviews with the staff of three Islamic banks, is presented to achieve the research objectives. Findings – The findings clearly demonstrate that the Islamic banking sector has experienced a paradigm shift from participatory financing to asset-based financing. In particular, the murabaha mode of financing dominates the current lending structure, which follows the general trend of the global Islamic banking sector. Research limitations/implications – It is necessary to concentrate on the potential negative outcomes of the trade-based murabaha mode of financing in a developing country such as Bangladesh, as banks have less incentive under protective rent (profit) opportunities to train the experts to screen and monitor projects in other socially desirable sectors such as agriculture and manufacturing including the small and medium enterprises. Originality/value – Despite substantial growth of the Islamic banking sector, less research has been conducted to shed analytical light on the operations of Islamic banks from the perspective of loan disbursement to identify the disparities, if any, in between theory and practice in countries where both Islamic and conventional banks operate simultaneously. Using country-specific evidence, this study contributes to the debate by highlighting the paradigm shift of Islamic banks from participatory financing to the dominance of asset-based murabaha and other modes of lending, by identifying the fundamental causes that contribute to such a shift and by highlighting the consequences of such changes.

scholarly journals PEMBERDAYAAN MASYARAKAT MELALUI PROGRAM CORPORATE SOCIAL RESPONSIBILITY (CSR) MANDIRI BERSAMA BANK MANDIRI DI MRICAN UMBULHARJO

2019 ◽  
Vol 2 (1) ◽  
pp. 109-128
Author(s):  
Novia Marwah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Public Awareness ◽  
Cooking Equipment ◽  
The Creation ◽  
Medium Enterprises ◽  
Corporate Social ◽  
Community Meeting

Corporate social responsibility (CSR) is an important part of a company, because in Indonesia there are laws that regulation of CSR. In addition to complying with the Act, CSR is also carried out because of the company’s awareness in assisting the country in alleviating poverty. One of the companies in the banking sector—Bank Mandiri—has a CSR program with empowerment, namely Mandiri Bersama Mandiri (MBM). This study attempts to describe the concept, implementation and results of the MBM program conducted by Bank Mandiri in Mrican, Giwangan, Umbulharjo, Yogyakarta. The results of this study indicate that the concept of Bank Mandiri’s CSR in the MBM program in broad outline is to build community independence through the utilization of local potential. The implementation of CSR carried out by Bank Mandiri through urban agriculture development programs, Micro, Small and Medium Enterprises (MSMEs), and the development of public facilities. Meanwhile, the results of physical empowerment are the creation of a clean and beautiful environment in Mrican, the realization of community meeting halls, increased cooking equipment for PKK mothers, savings in expenditure, and the creation of an increase in the community's economy. Non-physical is the formation of public awareness, increased knowledge of the community, the formation of skilled mothers, and the creation of community independence.

scholarly journals THE IMPACT ASSESMENT OF THE MICRO FINANCE TO FINANCIAL INCLUSION AND BISUNESS GROWTH: A STUDY OF THE MICRO, SMALL AND MEDIUM ENTERPRISES IN IGEMBE SOUTH (KENYA)

2018 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Martin Guantai Kanake ◽  
Dr. R. Mahesh
Keyword(s):  
Small Businesses ◽  
Default Risk ◽  
Small And Medium Enterprises ◽  
Distribution Channel ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Development Fund ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Purpose: The purpose of this study was to assess the impact of microfinance on financial inclusion and business growth in Igembe South District Kenya.Methodology: Descriptive research was used in discovering the research objectives. The research targeted the micro, small and medium sized businesses operating in Maua town (Igembe south District), 2181 of which were registered and licensed. A sample of 280 businesses (12.84% of the population) participated in the study.Results: This study revealed that microfinance institutions played a major role in improving financial inclusion among the small business owners who previous research has shown that they have been traditionally excluded from the formal banking systems. 78% of the respondents had access to the micro finance services while 60% had active microcredit in the preceding 12 months. It was clear that the microfinance institutions were cultivating the culture of saving among the micro entrepreneurs. However, most of the new businesses specifically those less than one year of age minimally benefitted from the micro finance services. It was also noted that default risk among the small businesses remains to be a challenge that micro credit lenders have to overcome for continued services provision. Working capital requirement was the leading reason for borrowing from micro finance institutions by the businesses.Unique contribution to theory, practice and policy: The study found that there was a good complementation between the existing micro finance institutions and the public entrepreneurial programs initiated by the government of Kenya such as Youth Entrepreneurs Development Fund, Women Enterprise Fund, Uwezo Fund and other County governments initiatives. The study recommended that the microfinance institutions should also be included in the distribution channel of these public funds for stronger linkage with the target groups. The MFIs should also utilize Credit Reference Bureau services to reduce the problem of default.

scholarly journals ALTERNATIVE STRATEGIES ON IMPROVING SMALL AND MEDIUM ENTERPRISES ACCESS TO SEED CAPITAL. A CASE OF DODOMA MUNICIPAL, TANZANIA

2017 ◽  
Vol 5 (9) ◽  
pp. 1-14
Author(s):  
N. Viswanadham
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Sufficient Time ◽  
Alternative Strategies ◽  
Low Interest Rates ◽  
Convenience Sampling ◽  
Small Medium Enterprises ◽  
Medium Enterprises

A crucial element in the development of the SME sector is access to finance, particularly to bank financing, given the relative importance of the banking sector in serving this segment. Small Medium Enterprises plays important and crucial roles in the economy development of any country. The main purpose of the study is to evaluate the Alternative Strategies on Improving Small and Medium Enterprises (SMEs) S’ Access to Seed Capital.  This study is descriptive and combines both primary and secondary data methods of data collection. The method of convenience sampling was employed in arriving at the 80 SMEs, which the researchers believe possesses the experience relevant for this study and who have sufficient time and were willing to participate. Data are analyzed and summarized by using both SPSS and excel. Key determinants for seed capital acquisition which are: fair and low interest rates; philanthropy; in-excessive demand for collateral security; less cumbersome procedures and realistic repayment schedule. The study further revealed that high interest rates; lack of finances and unfavorable tax charges as major constraints to the growth of SMEs. In a nutshell, the major challenge could be interpreted to mean lack of seed capital.

scholarly journals Analisis Kelayakan Usaha Street Food Untuk Pemanfaatan Lahan Parkir Pasar Modern

2019 ◽  
Vol 10 (2) ◽  
pp. 181-186
Author(s):  
Rangga Herbowo Putra ◽  
Endang Chumaidiyah ◽  
Meldi Rendra
Keyword(s):  
Net Present Value ◽  
Small And Medium Enterprises ◽  
Target Market ◽  
Internal Rate Of Return ◽  
Street Food ◽  
The Public ◽  
Land Rental ◽  
Potential Market ◽  
Food Market ◽  
Medium Enterprises

The street food area of Modern Market Goldland, Karawaci is an area that is provided for buying and selling activities among small and medium enterprises with consumers. Declining interest of the public to visit the shopping center as a result of their online shopping site makes one of the reasons why street food area began to develop, other than that street food festival can also help promote micro-economy of a country itself. This study aimed to determine whether land rental business street food is already feasible in terms of aspects of the market, technical, and financial aspects. Analysis of market aspects are used to determine potential markets, available markets and target markets. After collecting market data by distributing questionnaires, the potential market percentage is 94%, the available market is 97% of the potential market, and the target market is 5% of the available market. Analysis of technical aspects was carried out to see the outcome and income that occurred in the street food rental business in the next 5 years. The results of the calculation of financial aspects, obtained the value of NPV (Net Present Value) of Rp. 95,516,306, the value of IRR (Internal Rate of Return) of 27.67% and PBP (Pay Back Period) of 4.2 years. Because the IRR value is greater than the MARR value that is 11.74% and the NPV value is greater than 0, then the land leasing business by utilizing the street food market laha Modern Goldlan, Karawaci is said to be feasible.

scholarly journals United Kingdom

2020 ◽  
Vol 20 (320) ◽  
Author(s):  
Keyword(s):  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Current Account Deficit ◽  
Balance Sheet ◽  
Balance Sheets ◽  
Global Pandemic ◽  
Near Term ◽  
The Uk ◽  
Medium Enterprises ◽  
Second Wave

The UK entered 2020 negotiating a new economic relationship with the EU and facing other challenges, including meeting climate targets, dealing with an aging population, and reinvigorating tepid productivity growth. Growth and investment had been weak since the 2016 referendum, and the current account deficit elevated, but unemployment was low, inflation on target, and balance sheets strong. The global pandemic hit the UK hard in March, and the country now faces a second wave. The economic impact has been severe, but helped by an aggressive policy response, jobs have been preserved, businesses kept afloat, and banking sector losses contained. Still, the outlook for the near term is weak, as the economy works through the second wave, Brexit, rising unemployment, and corporate distress. Risks are overall to the downside, centering on the degree of balance sheet damage sustained by households and small and medium enterprises. The pace at which vaccines are able to bring the pandemic under control could be an important mitigating factor.

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