The Utilization of Fintech (P2P Landing) as SME’s Capital Solution in Indonesia: Perspective in Islamic Economics (Qirad)

2018 ◽  
Vol 2 ◽  
pp. 12-22
Author(s):  
Astri Rumondang
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Small Business Owners ◽  
Business Opportunity ◽  
Muslim Countries ◽  
Long Run ◽  
New Business ◽  
P2p Lending ◽  
Trading Activities ◽  
Medium Enterprises

FinTech as a technology-based financial service, generally opens opportunities for increased efficiency in creating new business, better risk management and ease of transactions and trading activities. The limited access to capital resources (particularly banking) and with many SMEs that are unable to obtain financial services, is utilized by FinTech (P2P lending) practicioners as a good business opportunity at this moment. Fintech P2P Lending is considered able to overcome the problems of Small and Medium Enterprises (SME) and become one of the captial solution and empowerment strategy for SME in the future. This is because it enables small business owners or SME to get their capital in a shorter time with more simple terms and conditions, and also with the shorter loan period. It will be encouraging the development of SMEs, which will, in a long run, affect the equity level of welfare and the economy of the middle classes. As one of the majority Muslim countries, Indonesia should apply the FinTech-based financial transaction service pattern in accordance with the perspective in Islamic economics (Qirad). Where in lending the capital must be in accordance with the provisions set by God. In Qirad, it is stipulated that in lending the capital to others, then the lender has to know or understand what type of business will be done by the borrower.

scholarly journals EFFECT OF DIGITAL FINANCIAL SERVICES ON THE GROWTH OF SMES IN KENYA

2021 ◽  
Vol 2 (1) ◽  
pp. 79-94
Author(s):  
Nandwa Nelly Awinja ◽  
Olanrewaju Isola Fatoki
Keyword(s):  
Financial Services ◽  
Social Networking Sites ◽  
Small And Medium Enterprises ◽  
Online Advertising ◽  
Descriptive Analysis ◽  
Business Environment ◽  
Digital Platforms ◽  
New Business ◽  
The Government ◽  
Medium Enterprises

The digital economy is a new business environment that enables enterprises to operate and provide services via the Internet and digital platforms. The study was on the effect of economic digitisation on growth of SMEs in Nairobi CBD. The specific objectives were to determine the effect of digital financial services, digital content, digital values and skills and the effect of online advertising on the growth of small and medium enterprises. The sample size in this study was 1000 SMEs formally registered in the study area from where a sample of 300 was randomly selected. The questionnaire was employed for the purpose of data collection from which out of the 300 questionnaires distributed, 180 were returned representing a 60% response rate. Guided by the research objectives, the data collected through the questionnaire were sorted, coded and presented in graphical and tabular forms for the purpose of descriptive analysis. To determine the significance of the relationship between the dependent and independent variables, a regression analysis was carried out using the Statistical Package of Social Sciences (SPSS) version 24. The study established that digital financial services were significant factors in ensuring growth of SMEs in Kenya. The study concluded that Mobile payments have become a favorite means of making financial transactions.  The study also established that Applications available for mobile digital devices is expected to increase enormously.  Digital payment technology has increased over the last decade. From the findings, it was concluded that Consumers grow more familiar with the different payment systems available and encourage more transactions. The SMEs should explore the possibility of forming a management committee to streamline economic digitisation issues. It is recommended that the organization clearly spell out economic digitisation procedures and criteria. This can stir positive growth  among SMEs establishments and can result in effective management. The Government and the various agencies should also make provisions for training programs for SMEs  to empower them in terms of economic digitisation. The SMEs should not rely on external professionals to assist in digitisation as this may be expensive. It is also recommended that the SMEs should adopt digital financial services. E-commerce will ensure increased profitability for small and medium enterprises. They should also have Social networking sites, which have proved to be popular online activities in relation to time, spent. They should also adopt Innovation driven entrepreneurship as it contributes to increase in sales revenue, market share, efficiency, customers’ loyalty and firm profitability.

scholarly journals Sistem Integrasi Proteksi & Manajemen Resiko Platform Fintech peer to peer (P2P) Lending dan Payment Gateway untuk Meningkatkan Akslerasi Pertumbuhan UMKM 3.0

2019 ◽  
Vol 2 (1) ◽  
pp. 73
Author(s):  
Yulianti Manan
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Gap Analysis ◽  
Small And Medium Enterprises ◽  
Governance System ◽  
P2p Lending ◽  
The Government ◽  
Model Platform ◽  
Medium Enterprises ◽  
Payment Gateway

The MSMEs (Micro, Small and Medium Enterprises) mentioned by the government as the backbone of the Indonesian economy are also still many that have not been touched by financial services or are unbankable. Currently in line with the development of information technology in financial services, the Fintech P2P lending ecosystem and payment gateways are growing rapidly and become one of the cash less payment options, an alternative option for new types of financing due to multi-advantages; fast, collateral-free and technology-based process which is a culture of supporting MSME generation to 3.0. The Fintech P2P Lending and Payment gateway business that is oriented towards IT Base financial reporting still requires a risk management and governance system to reduce and minimize the risk of fraud, bankruptcy, default and other risks. The purpose of this research is to analyze and study innovative solutions to the Fintech business model platform related to protection system management by establishing a central and strategic role between the regulator and Fintech providers. This research uses descriptive research design by using GAP Analysis to research and develop and collaborate on innovation, especially in Fintech business operating systems.

Financial Inclusion, P2P Lending, and MSMEs

2022 ◽  
pp. 60-81
Author(s):  
Tulus Tambunan
Keyword(s):  
Economic Development ◽  
Financial Crisis ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Asian Financial Crisis ◽  
Aggregate Data ◽  
Financial Inclusion ◽  
Alternative Source ◽  
P2p Lending ◽  
Medium Enterprises

In Indonesia after the Asian financial crisis of 1997–1998, wide reforms were carried out, and “inclusive” economic development were adopted. One component of inclusive economic development is “financial inclusion.” This implies an absence of barriers that might deter micro, small, and medium enterprises (MSMEs) from obtaining financial services. However, the portion of bank credit received by MSMEs is still small. Therefore, financial technology (FinTech) is welcome as an alternative source of funding for MSMEs. This chapter discusses three related issues, namely financial inclusion, MSMEs, and P2P lending. It concludes that Indonesia still has a long way to go to achieve full financial inclusion. This chapter suggests that with the presence of P2P lending, the number of MSMEs, especially MSEs, in Indonesia that have access to formal financing will increase. Even though aggregate data are not available, the interviews with a small number of owners of MSEs who received P2P loans suggest that the presence of P2P lending companies give some benefits for MSEs.

scholarly journals Characteristics of Financial Technology as Financing Alternative Capitalization of Medium Small-Medium Enterprises (MSME)

FIAT JUSTISIA ◽  
2021 ◽  
Vol 15 (2) ◽  
pp. 133-158
Author(s):  
Dwi Tatak Subagiyo
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Financial Institution ◽  
Small And Medium Enterprises ◽  
Peer To Peer ◽  
P2p Lending ◽  
Peer Lending ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Financial Technology

Characteristics of Financial Technology as a Financial Institution that uses information technology to provide financial solutions by prioritizing compliance with the principles of prudence and risk management. The characteristics of Financial Technology institutions are getting a loan quickly; Makes Payment Easier; Make Loan Payments without Additional Fees. Peer to Peer Lending (P2P lending) system in providing financial services is done through information technology based. The financial services institution Peer to Peer Lending (P2P Lending) is a financial technology financial institution (Fintech). Financial Technology (Fintech) as a Literacy Source for Financing Micro, Small and Medium Enterprises; Financial Technology (Fintech) As a Facilitator in MSME Development; Financial Tecnology (Fintech) as a driver for Micro, Small and Medium Enterprises to Increase National Financial Inclusion. The Role of the Financial Services Authority (OJK) and the Indonesian Joint Funding Fintech Association (AFPI) As Regulations and Oversight of Financial Technology Institutions (Fintech) in Indonesia.

scholarly journals ANALISIS PROSEDUR PEMBIAYAAN DAN MANAJEMEN RISIKO PADA PERUSAHAAN PEER TO PEER (P2P) LENDING SYARIAH DI INDONESIA

2019 ◽  
Vol 1 (2) ◽  
pp. 1-28
Author(s):  
Evy Iskandar ◽  
Ayumiati Ayumiati ◽  
Novita Katrin
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Peer To Peer ◽  
Primary Data ◽  
Free Access ◽  
P2p Lending ◽  
Stake Holder ◽  
Medium Enterprises

This study to examines the procedures for financing and risk management in Peer to Peer (P2P) lending company in Indonesia with a case study at PT. Ammana Fintek Syariah as a Sharia P2P lending company that was the first registered in Financial Services Authorization (OJK), which was established to free access to Micro, Small and Medium Enterprises (MSMEs) finance from loan sharks and usury interest. This study uses qualitative methods, primary data in research is based the direct information from company management as a stake holder. The results of this study indicate that the application of company financing procedures is carried out with two patterns, in the direct pattern that involving partners (BMT) and in the non-direct pattern carried out directly by the team of PT. AFS. While the application of risk management is mitigation by partners and internal management of PT.AFS to conduct early prevention of the risks to be faced, and in handling the problem of financing jams, the company opens a deliberation room for consensus on the actions of the settlement of both parties.   Keywords: Financing Procedure, Risk Management, peer to peer         Abstrak Penelitian ini mengkaji tentang prosedur pembiayaan dan manajemen risiko pada perusahaan Peer to Peer (P2P) lending di Indonesia dengan studi kasus pada PT.Ammana Fintek Syariahsebagai perusahaan P2P lending syariah pertama kali terdaftar di  Otorisasi Jasa Keuanga (OJK), yang didirikan untuk membebaskan akses untuk keuangan UMKM dari pola rentenir dan bunga riba. Penelitian ini menggunakan metode kualitatif, data primer dalam penelitian adalah informasi langsung dari manajemen perusahaan sebagai stake holder. Hasil penelitian ini menunjukkan bahwa penerapan prosedur pembiayan perusahaan dilakukan dengan dua bentuk yaitu pola directyang melibatkan mitra (BMT) dan non direct dilakukan langsung oleh tim PT. AFS. Sedangkan penerapan manajemen risikonya adalah dengan model mitigasi oleh mitra dan pengelolaan internal PT.AFS untuk melakukan pencegahan awal terhadap risiko yang akan dihadapi, dan penanganan masalah pembiayaan yang macet perusahaan membuka ruang musyawarah untuk mufakat terhadap tindakan penyelesaian kedua belah pihak.   Kata Kunci:Prosedur Pembiayan, Manajemen Risiko, Peer To Peer.

scholarly journals The Benefit of Microfinance Bank in Poverty Alleviation: A Case of Selected Micro, Small and Medium Enterprises in Anambra State

2021 ◽  
pp. 37-47
Author(s):  
Ifeoma C. Nwakoby ◽  
Ogochukwu Okanya
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Living Standard ◽  
Anambra State ◽  
The People ◽  
Long Run ◽  
Policies And Programs ◽  
The Individual ◽  
Medium Enterprises ◽  
Descriptive Survey

Poverty is an endemic problem that affects not just the individual or his or her immediate family, but the entire state, and eventually the nation. Poverty causes anger and hunger and this leads to violence in turn leads to reduction in economic growth and development. Through the utilization of descriptive survey involving questionnaire and microfinance banks’ directory, and Pearson Product Moment of Correlation Coefficient at 0.05 significant level, the study reveals that microfinance deal with the provision of financial services to SMEs who are traditionally not served by the conventional financial institutions in the country. The study also reveals that Micro Finance Banks have made a lot of impact in alleviation of poverty, thereby increasing the living standard of the people. More so, Micro-Finance Institutions throughout the developing world are providing small loans to the poor for self-employment and proving to be sustainable enterprises in the sight against poverty. The study recommended that federal government should put in place policies and programs that support the existence of Micro finance banks across the country so as to help the SMEs to growth and at the long run, alleviate poverty within the country.

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.

The Antecedents of Digital Marketing Application by Malaysian Micro, Small and Medium Enterprises (MSMEs)

2021 ◽  
Vol 8 ◽  
pp. 199-216
Author(s):  
Nor Khasimah Aliman ◽  
Zailin Zainal Ariffin ◽  
Paiz Hassan ◽  
Norazmi Anas
Keyword(s):  
Small And Medium Enterprises ◽  
Research Community ◽  
Digital Marketing ◽  
Research Model ◽  
Organizational Contexts ◽  
Adoption Decision ◽  
Business Opportunity ◽  
Marketing Application ◽  
Preliminary Model ◽  
Medium Enterprises

This research focuses primarily on Micro, Small and Medium Enterprises (MSMEs) in Malaysia, with special reference to Perak State. It is widely recognised that the adoption and use of digital marketing applications change the ways in which organizations conduct their activities and represent a critical business opportunity for MSMEs. This opportunity will only be realised by MSMEs if, and when, digital marketing is applied to their organizations. This, therefore, creates a requirement to understand the factors that influence MSMEs in making the adoption decision. The research related to such factors is scarce, not least because the technologies are relatively new. By using the Technology-Organization-Environment (TOE) framework, this study, therefore, attempted to understand the predictors/factors influencing the decision making by MSMEs to adopt digital marketing applications. It employed a quantitative approach to meet the research objectives. A survey involving 369 MSMEs in Perak State was conducted to examine empirically the preliminary model. The survey data were analysed using Logistic Regression (LR) technique. Of the factors examined, technological and organizational contexts were found to have a significant influence on MSMEs’ decisions to adopt digital marketing applications. These findings have important implications and value for the research community, MSMEs and policymakers in terms of formulating improved strategies for digital marketing adoption and applications. The resulting research model proposed in this paper/article can improve these stakeholders’understandings on why some MSMEs have chosen to adopt digital marketing technologies, while other MSMEs which face similar market conditions have not.

scholarly journals COMMERCIAL BANKS AND THEIR EFFECT ON SMALL AND MEDIUM ENTERPRISES FINANCING IN RWANDA: A CASE STUDY OF KIGALI CITY AND SOUTHERN PROVINCE

AGROFOR ◽  
2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Mutamuliza EULARIE ◽  
Giramata AURORE
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Small And Medium Enterprises ◽  
Financial Industry ◽  
Chi Square ◽  
Southern Province ◽  
Start Up ◽  
Chi Square Test ◽  
The Government ◽  
Medium Enterprises

Commercial Banks worldwide are identified to be one of the key players in the financial industry that have positively affected individuals involved in business, and the economy at large, through the functions they perform in the economy. However, inadequate financing in the activities of Small and Medium Enterprises (SMEs) is still the major constraint faced by people involved in business activities. Even though the Government of Rwanda has made effort to improve the accessibility to credit, entrepreneurs still have some challenges to access financial services in order to improve their businesses. The purpose of this research was to assess the contribution of commercial banks in financing SMEs in Rwanda. A sample of 60 SMEs was selected in Kigali and Southern Province of Rwanda. Data was collected from the respondents through a structured questionnaire. The collected data were analyzed using descriptive statistics such as frequencies and percentage distributions. A Pearson Chi-Square Test was used to analyze the relationship between commercial banks and SMEs in Rwanda. The results indicated that the main purposes of loan application were start-up capital, working capital and expansion of businesses. The results also revealed that there was positive relationship between commercial banks and SMEs in Rwanda. The results revealed as well, that commercial banks in Rwanda played a crucial role in contribution to SME’s economic development and small and medium entrepreneurs who got credit from commercial banks expanded their businesses and increased their income.

scholarly journals COVID-19 Pandemic and Micro, Small and Medium Enterprises (MSMEs): Policy Response for Revival

2020 ◽  
Vol 47 (3) ◽  
pp. 213-228
Author(s):  
Minaketan Behera ◽  
Sanghamitra Mishra ◽  
Niharika Mohapatra ◽  
Alok Ranjan Behera
Keyword(s):  
Small And Medium Enterprises ◽  
Economic Activities ◽  
Fiscal Stimulus ◽  
Indian Economy ◽  
Long Run ◽  
Market Linkage ◽  
The Government ◽  
Medium Enterprises ◽  
High Degree ◽  
The Relationship

The outburst of COVID-19 has not only distressed the economic and social activities of Indian economy but also the world economy as a whole. Out of different economic activities, the micro, small and medium Enterprises (MSMEs) affected a lot. This article attempts to measure the contribution of MSMEs towards Indian economy and also attempts to find out the challenges and problems in pre- and during COVID period. We have used different descriptive statistics to measure the impacts of MSMEs and also use of correlation and co-integration to measure the relationship among the variables such as number of MSMEs, investment amount, employment and output. This pandemic is an exceptional shock for MSMEs. It is evident that there is a high degree of significant positive correlation among the variables. Johansen’s co-integration analysis resulted in the rejection of the null hypothesis signifying the existence of long-run co-integrating relationship. Given the extensive COVID-19 chaos, the government needs to establish an ongoing monitoring system and declare urgent relief steps to improve the MSMEs sector’s confidence. E-market linkage for MSMEs should be promoted, and fiscal stimulus should increase for this sector. The Government of India should take various measures to improve Indian MSMEs and achieve the vision of Self-reliant India.

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