scholarly journals Implementation of Porter’s Diamond Model in the strategic architecture for agricultural financing development of baitul-maal wat-tamwil

2019 ◽  
Vol 2 (2) ◽  
pp. 86
Author(s):  
Adistiar Prayoga
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Agricultural Sector ◽  
Small And Medium Enterprises ◽  
Group Discussion ◽  
Research Data ◽  
Secondary Sources ◽  
Goods And Services ◽  
Diamond Model ◽  
Medium Enterprises

In 2018, there were 38.7 million workers in agriculture. The high number in the agricultural sector is not accompanied by an increase in the contribution of the total agricultural sector to the value of the Gross Domestic Product. The condition is exacerbated by the lack of accessibility of rural farmers towards farming capital. Although micro, small and medium enterprises (SME’s) loans grew by 8.0 percent (yoy) in 2016, many studies have revealed the dependence of micro farmers (gurem) on access to capital from informal sources which ultimately makes it difficult for them in terms of repaying capital loans because they are trapped in the practice of money lenders. The existence of Islamic Financial Services Cooperatives (Koperasi Jasa Keuangan Syariah-KJKS) is an interesting subject. KJKS, better known as Baitul Maal wat Tamwil (BMT), is hope for increasing the accessibility of the poor to capital sources because BMT plays a cultural role as a funding intermediary and cultural as a social lending institution (qardhul hasan). This study aims to analyze the development of institutional financing based on Baitul Maal Wat Tamwil (BMT) using the Berlian Porter Model approach so that a strategic architecture of agricultural financing development can be formulated based on the competing factors of BMT competitiveness in rural areas. Primary research data was taken in November 2016-January 2017 using the focus group discussion method with expert speakers. The research data is then supplemented by relevant secondary sources in November 2019. The formulation of competitiveness in the Diamond Model is often known to analyze the competitiveness of countries, but several studies reveal that the Berlian Porter approach can be applied to the scale of the country, region, industry, and individual companies, both goods, and services. The ability of an institution to maintain its existence depends on its competitiveness, and in the aggregate will affect the competitiveness of a country.

scholarly journals Microfinance Sector and Sme Financial Suport in Albania

2017 ◽  
Vol 5 (1) ◽  
pp. 243
Author(s):  
Alma Delija
Keyword(s):  
Economic Development ◽  
Rural Areas ◽  
Financial Services ◽  
Growth And Development ◽  
Poverty Reduction ◽  
Small And Medium Enterprises ◽  
Decisive Role ◽  
Goods And Services ◽  
The Individual ◽  
Medium Enterprises

The creation of the microfinance sector and its functioning in Albania has played an essential role and has been and is a powerful tool for the development of small and medium enterprises (SMEs) of Albanian agribusiness. Microfinance has played an ever more decisive role in increasing output, reducing unemployment, improving the level of living conditions and welfare of the population, especially in rural areas, creating new jobs, contributing significantly to economic development Of the country. The growth and development of SMEs plays a fundamental role in the national economy, serving as a driving force in the country's economic development. Empirical evidence suggests that the growing SME sector and the dynamism of their development can strongly contribute to achieving a broad range of development objectives, such as: Achieving income distribution and poverty reduction; Creating employment; Savings mobilization; And production of goods and services that meet basic basic needs of the individual and society. Despite the great contribution to the growth and economic development of the country, the growth and development of SMEs in our country has been hampered by financial access, poor management skills, and lack of training opportunities and high input costs. Liquidities' sluggishness and low access to finance for SMEs is the biggest obstacle to them. SMEs have limited access to financial services provided by formal financial institutions to meet their liquidity and investment needs.

scholarly journals STUDI KELAYAKAN USAHA DAN DAYA SAING PADA INDUSTRI TEPUNG TAPIOKA DI KECAMATAN POGALAN KABUPATEN TRENGGALEK

2017 ◽  
Vol 10 (2) ◽  
pp. 51
Author(s):  
Winda Amilia ◽  
Miftahul Choiron
Keyword(s):  
Development Strategy ◽  
Agricultural Sector ◽  
Net Present Value ◽  
Small And Medium Enterprises ◽  
Raw Material ◽  
Market Demand ◽  
Diamond Model ◽  
Business Competitiveness ◽  
Tapioca Flour ◽  
Medium Enterprises

Small and Medium Enterprises play an important role for economic growth in Indonesia. As an agricultural country, development on agricultural sector should be done to meet the needs of industries. As agricultural commodities, cassava requires processing efforts to increase the product value. Anis Jaya has been processing tapioca flour since 1983 in the center of tapioca flour on Pogalan, Trenggalek Regency. Since 2015, Anis Jaya has decreased production number, due to the decline on market demand. This has an impact on the decline of cassava purchasing price by industry. Therefore, the objective of this research is to analyze the feasibility of Anis Jaya business and to analyze business competitiveness using Porter’s Diamond model approach for business development. The analysis shows that the Net Present Value is Rp. 88.690.571,74 (NPV > 1), Internal Rate of Return is 54,98% and Payback Period less than 1 year. Net B/C ratio of Anis Jaya is 2,82 which indicates that the industry is still worth continuing. The formulated development strategy is making efficiency by adding capital, improving product and service quality, optimizing labor performance, and managing raw material inventory and auxiliary materials.

scholarly journals Challenges in Availing Finance for MSME Entrepreneurs

2019 ◽  
Vol 7 (3) ◽  
pp. 71-74
Author(s):  
K Murugeswari
Keyword(s):  
Rural Areas ◽  
Agricultural Sector ◽  
Small And Medium Enterprises ◽  
National Income ◽  
Government Programs ◽  
Minimum Capital ◽  
The People ◽  
Urban And Rural Areas ◽  
Medium Enterprises ◽  
Start Ups

In India’s socio-economic development, Micro, Small and Medium Enterprises play an important role. The agricultural sector is the first in employing the majority of the people, whereas MSMEs hold second place. MSME sector provides employment opportunities at the minimum capital cost. It assures more equitable distribution of national income/wealth and reduces regional imbalances as they are widespread both in urban and rural areas. In many cases, entrepreneurs struggle to find any finance for new and uncertain businesses without collateral security. In recent years, spectrums of new Government programs are available to start-ups and growing businesses. This paper attempts to provide a view of those financial needs of Entrepreneurs, various Government schemes, challenges faced by Micro, Small and Medium Enterprises while availing the loans.

Mediating Role of Utilization of Financial Products and Services on the Relationship between Financial Access and MSMEs Growth in India

2020 ◽  
Vol 47 (3) ◽  
pp. 261-278
Author(s):  
Harleen Kaur ◽  
Palvi Bansal
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Financial Access ◽  
Goods And Services ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The study’s main aim is to figure out what function financial goods and services play in mediating the link between financial access and micro, small and medium enterprises (MSMEs)’ growth in developing markets. Consequently, this article aims to see whether the usage of monetary goods and services in a developing nation like India mediates the connection between financial access and MSMEs’ growth. The data were collected from 392 MSMEs in the Jammu region using a cross-sectional research method. The partial least squares structural equation modelling (PLS-SEM) technique was used to see whether the use of financial goods and services in developing nations had a mediating consequence on the link between financial access and MSMEs’ growth. The study exclusively collected data from MSMEs in India’s Jammu region. There is still the possibility of confirming this result in other emerging economies. MSMEs may participate in financial access initiatives provided by organisations to use financial services better.

scholarly journals Impact of Goods and Service Tax (GST) on MSMEs in India

2019 ◽  
Vol 8 (9S3) ◽  
pp. 1235-1240
Keyword(s):  
Rural Areas ◽  
Small And Medium Enterprises ◽  
High Growth ◽  
Indian Economy ◽  
Foreign Companies ◽  
Goods And Services ◽  
Employment Generation ◽  
Urban And Rural Areas ◽  
Medium Enterprises ◽  
Made In

The Micro, Small and Medium Enterprises (MSMEs) sector has been deliberated as the chief development driver of the Indian economy for the year(Sunil Mitra 2018). India is a predictable to appear as one of the important economies in the world over the next decade in the light of a positive political and economic scenario (Mc Kinsey 2017).The Micro, Small and Medium Enterprises (MSMEs) fragment is expected to play a significant role in the appearance of the Indian Economy. The development of this part is very decisive to meet the national imperatives of financial inclusion and generation of significant levels of employment across urban and rural areas of the country (Annual Report 2017-18). Micro, Small and Medium Enterprises (MSMEs) can be the backbone for obtainable and future of high growth business with both domestic and foreign companies. The present paper will focus on existing scenario and trends of MSMEs in India (ShriMadavLal 2015). There is equally important that the Micro, Small and Medium Enterprises (MSMEs) sector develops in all areas of agriculture, manufacturing and services sectors because each of these sectors will continue to be very relevant to the GDP growth as well as employment generation (ShriR.S.Gujral 2017). The Micro, Small and Medium Enterprises (MSMEs) sectors will act as a mechanism to bring about this socio-economic renovation. An attempt has been made in this study to find the sector wise contribution to GDP after Implementation of Goods and Services Tax (GST)

scholarly journals FINANCIAL INCLUSION AND PERFORMANCE OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

2017 ◽  
Vol 5 (3) ◽  
pp. 104-122
Author(s):  
Bassey Ina Ibor ◽  
Amenawo Ikpa Offiong ◽  
Enyeokpon Samuel Mendie
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Design Method ◽  
Financial Inclusion ◽  
Easy Access ◽  
Chi Square ◽  
Access Points ◽  
Medium Enterprises ◽  
The Impact

Financial inclusion assures easy access to financial services by enabling the disadvantaged and vulnerable sections of the society to actively contribute to development and protect themselves against socio-economic shocks. Nigeria has a sizeable rural poor population with limited access to conventional financial institutions or services. This study investigated the impact of financial inclusion on the micro, small and medium enterprises (MSMEs) performance in Nigeria. The survey research design method was used, involving the use of questionnaires, in collecting data from respondents. Data were analyzed using the Pearson Chi-square technique. The results show that, whereas financial inclusion positively and significantly impacts the operations and growth of MSMEs, distance to financial services access points and infrastructural deficiency challenged fast and effective access to financial services by MSMEs in Nigeria. The study recommends that deliberate efforts should be made to spread access points to more rural areas and improve infrastructure to promote FI. This should include a policy roadmap for expanding financial services access points to unbanked and underserved areas using the financial services geospatial map. Furthermore, the digitizing of payments across the country should be prioritized to include enhanced ICT/E-banking tools and a consumer protection framework.

scholarly journals COVID-19 Pandemic and MSMEs: Impact and Mitigation

2020 ◽  
Vol 9 (1) ◽  
pp. 67-80
Author(s):  
David Ronald Tairas
Keyword(s):  
Qualitative Method ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Business Owners ◽  
Secondary Sources ◽  
Goods And Services ◽  
Managerial Implications ◽  
Financial Liquidity ◽  
Medium Enterprises ◽  
Descriptive Qualitative

Indonesia announced the first COVID-19 case in early of March 2020. Since then, the mobility restriction has hampered the economy, including the micro, small and medium enterprises (MSMEs) businesses. This study aims to explore the types of challenges encountered by MSMEs to sustain their businesses during the hardship. Descriptive qualitative method is used, with data sourced from interview with 34 MSMEs, one in each province in Indonesia, as well as secondary sources including research journals and various reports on the COVID-19 pandemic. The results show that business owners experience difficulties in producing goods and services because of the raw materials shortage, financial liquidity and decreasing demand. Policy and managerial implications of the study are provided.

Performance Evaluation of MSMEs During Pre- and Post-liberalisation Era

2019 ◽  
Vol 46 (4) ◽  
pp. 282-294 ◽  
Author(s):  
M. Venkataramanaiah ◽  
B. Suneetha
Keyword(s):  
Present Article ◽  
Agricultural Sector ◽  
Small And Medium Enterprises ◽  
Developing Nations ◽  
Diverse Range ◽  
Equal Distribution ◽  
Goods And Services ◽  
Necessary Evil ◽  
Medium Enterprises ◽  
The Impact

Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in creating employment opportunities. These are more vibrant in countries like India where population is more and labour-intensive manufacturing establishments are huge in number. In general, these firms are established in rural and economically backward regions, thereby a regional balance may be achieved through the equal distribution of wealth. MSMEs are considered complementary to heavy industries as subsidiary units and provide enormous socio-economic development to the nation. MSMEs contribute about 8 per cent of the country’s GDP, with 45 per cent of manufacturing yield and 40 per cent of exports. After the agricultural sector, MSMEs provide lion’s share of employment for the jobless. Further, they provide a diverse range of goods and services that satisfy the needs of local, national and international supply chains. Globalisation is said to be a necessary evil. The advent of the WTO brings a variety of challenges to developing nations as these are frail in bargaining capacity against their counterparts. As a result, developing nations like India are subjected to all those adverse effects of globalisation, and the MSMEs sector is not exceptional. The existing literature in the subject indicates that there is a considerable fall in the growth rate of the number of units, output, exports and employment generation after post-globalisation, and this trend is the matter of serious concern for the policymakers and decision-makers. In this junction, the present article is intended to investigate the impact of globalisation on the performance of MSMEs. The study is divided into three sections. The first section devotes to introduce the study area of the present article, review of the literature and objectives and methodology of the research. The growth and trend of MSMEs in India during the pre- and post-globalisation eras are discussed in the second section. The summary and conclusion of the study is given in the last section.

scholarly journals Technical and scale efficiency of Indonesian rural banks

2018 ◽  
Author(s):  
abdul.mongid
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Production Frontier ◽  
Academic Researchers ◽  
Medium Enterprises ◽  
State Programs

The existence of the rural bank in the Indonesian’ financial market is more pronounced recently than ever especially after the Asian crisis in 1997. The ability of rural banks to shield during the crisis and the state programs to develop small and medium enterprises (SMEs), make the role of rural banks more pivotal. Rural banks begin to fill in the gap of financial services in rural areas. Recently, the issue of efficiency has received attention among academic researchers. This study estimates the technical and scale efficiency of rural banks in Indonesia during the period of 2006 and 2007 by using the non-parametric approach – Data Envelopment Analysis (DEA). The results suggest that the degree of technical efficiency is found to be lower than the degree of scale efficiency which indicates that portion of overall inefficiency is due to producing below the production frontier rather than producing at an inefficient scale. In addition, majority of the banks in the sample exhibit suboptimal scale which imply that output should be expanded to reach the optimal scale.

Kewirausahaan (Entreprenuership) Berbasis Manajemen Strategik bagi Wirausaha Baru di Kecamatan Kebayoran Lama Utara, Jakarta Selatan

2018 ◽  
Vol 1 ◽  
pp. 333
Author(s):  
Sintha Wahjusaputri ◽  
Ahmad Faisal Siregar
Keyword(s):  
Strategic Management ◽  
Community Organization ◽  
Small And Medium Enterprises ◽  
Group Discussion ◽  
Family Welfare ◽  
Start Up ◽  
Work Community ◽  
New Business ◽  
Medium Enterprises ◽  
Creativity And Innovation

Entrepreneurship (entrepreneurship) is a process of applying creativity and innovation in solving problems and finding opportunities to improve life (business and work). Community service activities are focused on small and medium enterprises (SMEs) built by PKK through UP2K in Kebayoran Lama Utara sub-district, in the form of food culinary, clothing, transportation and new business (start-up company). Business people as many as 30 people from various businesses. Methods used: (1) Survey; (2) Focus Group Discussion (FGD); (3) Briefing (Community Organization); (4) Community Development; (5) Learning Methods; and (6) Advocacy. The findings obtained are: (1) nine out of 10 organizations failed to realize SMEs due to no rest; (2) there are 5% of participants who understand the strategic plan; (3) 60% of organizations do not have realization budgets. The objectives of entrepreneurship based on strategic management are: (1) achievement of family economic effort improvement through group / individual business, so as to increase income and family welfare; (2) enhancing the capabilities and qualities of new entrepreneurs; (3) increasing knowledge, skills and skills for new entrepreneurs; (4) fostering groups of community or pre-cooperative economic enterprises in order to improve the family and community economy. Strategic management-based entrepreneurship is expected to promote effective and efficient SMEs for new entrepreneurs.

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