scholarly journals Development Strategy for Micro, Small and Medium Enterprises through Islamic Financial Inclusion

2020 ◽  
Vol 9 (1) ◽  
pp. 55
Author(s):  
Warno Warno ◽  
Novatul Isrowiyah ◽  
Rahman El Junusi
Keyword(s):  
Development Strategy ◽  
Sampling Method ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Three Dimensions ◽  
Significant Positive Effect ◽  
Medium Enterprises ◽  
The Impact ◽  
Positive Effect ◽  
Observation Period

This study calculates and analyzes the Islamic financial inclusion index which covers three dimensions; accessibility, availability, and usage of sharia banking. The results showed that the level of Islamic financial inclusion in Indonesia was classified as low during the study period and DKI Jakarta Province was the most inclusive province in Indonesia. Furthermore, this study analyzes the effect of the Islamic financial inclusion index on Islamic financing channeled to Micro, Small and Medium Enterprises (MSMEs) in Indonesia. Using the saturated sampling method, a total of 33 provinces in Indonesia were selected as samples with an observation period. The results show that the Islamic Financial Inclusion Index (IIK) has a significant positive effect on sharia financing channeled to the MSME sector, one of the regions that appears to be growing faster than other regions is Aceh. This research is different from previous financial sector inclusiveness studies that still see and study conventional (non-sharia) financial inclusion and find out the impact of sharia financial inclusion based on sharia financial inclusion indexes on sharia financing distributed to Micro, Small and Medium Enterprises in Indonesia and discuss comprehensively for MSME.

scholarly journals Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia

2021 ◽  
Vol 14 (7) ◽  
pp. 286
Author(s):  
Betgilu Oshora ◽  
Goshu Desalegn ◽  
Eva Gorgenyi-Hegyes ◽  
Maria Fekete-Farkas ◽  
Zoltan Zeman
Keyword(s):  
Small And Medium Enterprises ◽  
Multiple Linear Regression Model ◽  
Financial Inclusion ◽  
Research Approach ◽  
Supply Side ◽  
Access To Finance ◽  
Secondary Sources ◽  
Medium Enterprises ◽  
Supply Side Factors ◽  
Positive Effect

The study examines the determinant factors that influence financial inclusion among small and medium enterprises (SMEs) in Ethiopia. The study uses an explanatory research design and a mixed research approach with both primary and secondary sources of data. More specifically, the study adopts a multiple linear regression model. The finding of the study reveals that; supply-side factors, demand-side factors, market opportunity, and collateral requirements have a positive effect on the firm’s access to finance. On the other hand, institutional framework factors, and the costs of borrowing negatively affect the firm’s access to finance. This study suggests concerned bodies sustain rapid and inclusive economic growth and hence eradicate extreme poverty and hunger, the policymakers must build an efficient, strong, and well-functioning financial market system that provides affordable and sustainable financial service to SMEs.

scholarly journals Challenges Facing Financial Inclusion Due to the COVID-19 Pandemic

2020 ◽  
Vol 3 (2) ◽  
pp. 50
Author(s):  
Tea Kasradze
Keyword(s):  
Low Income ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Financial Resources ◽  
Financial Products ◽  
The Poor ◽  
Wide Range ◽  
Medium Enterprises ◽  
The Impact ◽  
Poor Population

Financial inclusion is often considered as an access to financial resources for the wide public and small and medium-sized businesses, although it is a much broader concept and includes a wide range of access to quality financial products and services, including loans, deposit services, insurance, pensions and payment systems. Mechanisms for protecting the rights of consumers of financial products and services are also considered to be subject to financial inclusion. Financial inclusion acquires great importance during the pandemic and post-pandemic period. The economic crisis caused by the pandemic is particularly painful for low-income vulnerable population. A large part of the poor population who were working informally has lost source of income due to lockdown from the pandemic. Remittances have also been reduced / minimized, as the remitters had also lost jobs and are unable to send money home. Today, when people die from Coronavirus disease, it may be awkward to talk about the financial side of a pandemic, but the financial consequences can be far-reaching if steps are not taken today to ensure access to and inclusion of financial resources. The paper examines the impact of the pandemic on financial inclusion and the responses of the governments and the financial sectors to the challenge of ensuring the financial inclusion of the poor population and small and medium enterprises.

scholarly journals Pengaruh Persepsi, Tingkat Pendidikan, dan Sosialisasi Terhadap Penerapan SAK EMKM Pada UMKM Wilayah Kota Surabaya

2018 ◽  
Vol 12 (2) ◽  
pp. 112
Author(s):  
Galuh Artika Febriyanti ◽  
Agung Sri Wardhani
Keyword(s):  
Sampling Method ◽  
Small And Medium Enterprises ◽  
Financial Statements ◽  
Financial Accounting ◽  
Primary Data ◽  
Negative Effect ◽  
Convenience Sampling ◽  
Medium Enterprises ◽  
Cash Basis ◽  
Positive Effect

The perpetrators of MSMEs generally do not use the standards applicable in the preparation of financial statements. MSME financial statements often use cash basis taken from daily cash mutation sources. The Indonesian Institute of Accountants seeks to contribute to overcome the constraints of MSMEs in the preparation of financial statements by issuing the Financial Accounting Standards of Micro Small and Medium Enterprises (SAK EMKM) and effective from 1 January 2018. SAK EMKM is simple to be implemented easily by MSMEs. The Financial Statements according to SAK EMKM are prepared on the accrual basis. The research took 50. MSMEs in Surabaya using convenience sampling method. The data used are primary data obtained through questionnaires. This study aims to finding out the hypothesis that the perception of MSMEs in Surabaya against the application of EMKM IFRS had an effect on the application of EMKM IFRSs, testing the education level hypothesis of MSMEs in Surabaya had an effect on the application of EMKM IFRSs, and tested the hypothesis of SAK EMKM dissemination in Surabaya. application of SAK EMKM. The results showed that partially the perception of MSMEs entrepreneurs has a positive effect on implementation SAK EMKM while the level of education and sozialization has a negative effect.

scholarly journals The Impact of Purchasing Group on the Profitability of Companies Operating in the Renewable Energy Sector—The Case of Poland

Energies ◽  
2020 ◽  
Vol 13 (24) ◽  
pp. 6588
Author(s):  
Grzegorz Zimon ◽  
Dominik Zimon
Keyword(s):  
Renewable Energy ◽  
Small And Medium Enterprises ◽  
Energy Sector ◽  
Financial Situation ◽  
Financial Liquidity ◽  
Medium Enterprises ◽  
Purchasing Group ◽  
The Impact ◽  
Research Period ◽  
Positive Effect

Purchasing groups are multi-entity organisations that operate in practically every sector. Their greatest role is to improve the financial situation of small and medium enterprises (SMEs). In the case of enterprises operating in the sectors that are just developing, especially those belonging to SMEs, it is particularly difficult to obtain favourable financial results. In Poland, such sectors include, among others, renewable energy, which is slowly developing, but has not yet reached the size set in climate policy. The purpose of the paper is to present how functioning under group purchasing organisations (GPOs) affects the profitability of companies related to the renewable energy sector. For the example of the largest industry purchasing groups, the analysis showed that high profitability results were achieved by enterprises operating in them compared to entities operating independently in the market. In total, 71 enterprises operating in the sector related to the renewable energy sector in Poland were analysed. The enterprises were divided into units operating in the purchasing groups of 46 enterprises, and those that operate independently in the market of 25 enterprises. The research period covered the years 2016–2019. The analysis showed that the scale effect allowed companies to increase profits and had a positive effect on their financial liquidity. The research proved that in the case of commercial enterprises operating in the sector related to renewable energy, functioning within the industry purchasing group allowed high profitability and financial liquidity. There is a dependency that the liquidity increases with a growth in profitability.

scholarly journals Interdependence of Influence between Risk Management Behavior, MSME Characteristics, and Overconfidence on Business Sustainability (A case study in Indonesia)

2021 ◽  
Author(s):  
Tyoso JALUANTO ◽  
Sukardi SUKARDI ◽  
Eliza DEVITA
Keyword(s):  
Risk Management ◽  
Local Government ◽  
Central Government ◽  
Small And Medium Enterprises ◽  
Significant Positive Effect ◽  
Management Behavior ◽  
Business Sustainability ◽  
Negative Effect ◽  
Medium Enterprises ◽  
Positive Effect

More than 50% of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia run their business for reasons of livelihood, while 30% do this since MSMEs are profitable, and may support their living costs. This study aims to determine and analyze the influence of risk management behavior, characteristics of MSMEs through overconfidence on MSME business sustainability, and consequently MSMEs as a source of livelihood. The result of this study indicates that risk management behavior has a significant positive effect on overconfidence, while the characteristics of MSMEs have a significant negative effect on that. In turn, it’s shown that overconfidence had a positive and significant effect on the sustainability of MSMEs. However, the characteristics of MSMEs and risk management behavior had no significant positive effect on the sustainability of MSMEs. These results indicate also that MSME entrepreneurs’ overconfidence plays a major role in managing their business, which could be considered by the local government and/or the central government in determining MSME policies, such as placements to sell which are given and regulated by each local government considering the accessibility of sellers and buyers as well as their safety.

scholarly journals Do Financial Inclusion, Debt Behavior Affect Business Investment? Study in Small Medium Enterprise Customers of Bank BPD Yogyakarta Indonesia

2021 ◽  
Author(s):  
Raden Hendry Gusaptono ◽  
R. Heru Kristanto HC ◽  
Efendy S. Yuwono2
Keyword(s):  
Small And Medium Enterprises ◽  
Investment Decisions ◽  
Financial Inclusion ◽  
Analysis Model ◽  
Business Investment ◽  
Bank Behavior ◽  
Medium Enterprise ◽  
Medium Enterprises ◽  
Positive Effect ◽  
Debt Behavior

Bank, financial inclusion, debt behavior, and business investment greatly affect the economic growth of a region industry. The main purpose of this research is to examine the effect of bank behavior, financial inclusion, debt behavior on investment decisions of Micro, Small and Medium Enterprises customers at Bank BPD Yogyakarta, Indonesia. The research sample is BPD Yogyakarta customers Respondents as 200 entrepreneurs are customers who are in debt for business investment. The analysis model uses mediation regression with PLS. The results showed that bank behavior had a positive effect on financial inclusion. Bank behavior has a positive effect on debt behavior. Financial inclusion has a positive effect on business investment. Debt behavior has a positive effect on business investment. Financial inclusion, debt behavior mediates the influence of bank behavior on business investment. The implication of this research is that a clear bank behavior and high commitment of banks are needed in offering bank products. It takes commitment and supervision from the Bank in providing credit to customers so that the use of funds is in accordance with investment objectives.

scholarly journals ANALISIS STRATEGI PENGEMBANGAN USAHA MIKRO KECIL DAN MENENGAH (UMKM) MELALUI MEDIA ONLINE DESA KARANGPOH KECAMATAN KRIAN KABUPATEN SIDOARJO (TINJAUAN PEMASARAN ISLAM)

2021 ◽  
Vol 8 (1) ◽  
pp. 43
Author(s):  
Fitri Andrianti ◽  
Renny Oktafia
Keyword(s):  
Development Strategy ◽  
Qualitative Method ◽  
Small And Medium Enterprises ◽  
Business Development ◽  
Online Media ◽  
Research Approach ◽  
Information And Communication ◽  
Medium Enterprises ◽  
The Impact ◽  
Implementing Strategies

ABSTRAKDengan adanya teknologi, informasi dan komunikasi yang semakin canggih, hal tersebut bisa dimanfaatkan untuk mengembangkan bisnis Usaha Mikro Kecil Dan Menengah (UMKM). Salah satunya yakni dengan cara mempromosikan usaha yang dilakukan. Penelitian ini bertujuan untuk menggali bagaimana implementasi strategi pengembangan serta dampak implementasi strategi pengembangan usaha mikro kecil dan menengah (UMKM) melalui media online di Desa Karangpoh kec. Krian kab. Sidoarjo (tinjauan pemasaran islam). Metode yang digunakan adalah metode kualitatif. Pendekatan penelitian ini menggunakan studi kasus. Hasil dari penelitian ini dapat disimpulkan bahwa implementasi strategi pengembangan project bunga kertas terbagi menjadi empat macam yakni memberikan promo, iklan, penentuan harga dan menjaga pelayanan dengan customer. Kata kunci: Pengembangan Usaha, Media Online, Pemasaran Islam. ABSTRACTWith technology, increasingly sophisticated information and communication, this can be used to develop micro small and medium enterprises. One of them is by promoting the business being carried out.This study aims to explore how the implementation of development strategies and the impact of implementing strategies for developing micro smalland medium enterprises through online media in Karangpoh village. Krian district. Sidoarjo regency (islamic marketing review). The method used is a qualitative method. This research approach uses case studies. The results of this study can be concluded that the implementation of the paper flower project development strategy is divided into four types, namely providing promos, advertising, pricing and maintaining service to customers.Keywords: Business Development, Online Media, Islamic Marketing.

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 Effects of the Establishment of Entrepreneurial Orientation on the Performances of Small and Medium Enterprises in Transition Countries: Empirical Evidences from Bosnia and Herzegovina

2019 ◽  
Vol 22 (s1) ◽  
pp. 37-67
Author(s):  
Saša Petković ◽  
Snežana Sorak
Keyword(s):  
Bosnia And Herzegovina ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Economic Structure ◽  
Three Dimensions ◽  
Entrepreneurial Activity ◽  
The Republic ◽  
Medium Enterprises ◽  
The Impact

Abstract Bosnia and Herzegovina (BiH) has a relatively low level of entrepreneurial activity as evidenced by GEM reports but also has an economic structure in which SMEs account for about 99% of the total number of enterprises. The goal of this paper was to examine the level of entrepreneurial orientation (EO) and influence of EO on business performances of SMEs in the Republic of Srpska (RS), one of the two BiH entities, in which the empirical research was done. We have used adapted Covin & Slevin (1989) version of the questionnaire. We found out that only 12.28% of sampled SMEs have all three dimensions of EO pronounced. The least pronounced dimension is risk-taking and the most pronounced dimension is proactiveness. Our research did not confirm the impact of EO on selected indicators of business performances.

scholarly journals Memetakan Perubahan Organisasi Dalam Desain Learning Organization Pada Usaha Kecil Menengah di Kota Malang

2016 ◽  
Vol 18 (1) ◽  
pp. 101
Author(s):  
Sugeng Mulyono ◽  
Enlik Kresnaini
Keyword(s):  
Learning Organization ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Significant Positive Effect ◽  
Medium Enterprises ◽  
Positive Effect

<p><em>This research aims at analyzing the implementation of learning organization at small and medium enterprises (SMEs); the effects of learning organization on individuals’ ability; the effects of individuals’ ability on SMEs changes; and the effects of learning organization on changes of SMEs. The population of this research is all SMEs located in Malang and the samples are 298 SMEs taken through multi stages sampling. The primary data were collected using a questionare and interviews, whereas the secondary were obtain from relevant documents. The collected data were analyzed using descriptive and structural equational modelling (SEM). The results show that learning organization has a significant positive effect on individuals’ ability; the individuals’ ability has a significant positive effect on changes of SMEs; and learning organization has a significant positive effect on changes of SMEs, as indicated by C.R &gt; 2 and value of P &lt; 0,05.</em></p>

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