MSMEs and Access to Financing in a Developing Economy

2017 ◽  
pp. 148-172 ◽  
Author(s):  
Tulus T. H. Tambunan
Keyword(s):  
Economic Development ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Developing Economy ◽  
Microfinance Institutions ◽  
Access To Finance ◽  
Total Employment ◽  
Credit Guarantee ◽  
Micro And Small Enterprises ◽  
Medium Enterprises

Historically, micro, small, and medium enterprises (MSMEs) have played an important role in economic development in Indonesia. MSMEs are very numerous, amounting to, on average, almost 99% of total enterprises and also more than 90% of total employment across sectors in the country. Although the lack of finance is not the only problem facing many MSMEs, this chapter discusses the Indonesian experience with MSME financing with the focus on a government-initiated credit guarantee scheme, namely KUR (people business credit), aiming to give the enterprises more access to finance and the development of microfinance institutions. It also provides a brief description of MSMEs' development, their main constraints, and their main finance sources. The chapter shows that, in spite of government efforts, the majority of MSMEs, especially micro and small enterprises (MSEs), still depend on informal sources for their capital.

Analysis of Major Problems Faced by Small Firms in North India

2015 ◽  
Vol 15 ◽  
pp. 150-160
Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
North India ◽  
Small Enterprises ◽  
Employment Generation ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.

scholarly journals The Development of Digital in the Covid-19 Pandemic

2021 ◽  
Author(s):  
Maria Digna R. Nahak
Keyword(s):  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Asian Development Bank ◽  
Small Enterprises ◽  
Domestic Economy ◽  
Development Bank ◽  
Micro And Small Enterprises ◽  
Medium Enterprises ◽  
Almost All ◽  
The Impact

The global Covid-19 pandemic that has plagued all countries of the world has affect all sectors of people's lives. In Indonesia, almost all sectors experience impacts, especially the economic ecosystem which has been become the focus of society. Furthermore, the Covid-19 pandemic has made the slowdown in the economic sector in Indonesia with its various derivatives. The Micro, Small and Medium Enterprises (MSME) sector which is part of the most important sector of the economy is very important feel. This is what worried by all parties, because it has made the MSME sector experienced a significant decline. Moreover, currently many MSMEs are experiencing various problems such as: decrease in sales, capital, hampered distribution, difficulty in raw materials, decreased production and the occurrence of many layoffs for workers and hunting which later became a threat to the national economy. MSMEs as a driver of the domestic economy and a middle labor absorber face a decline in productivity which results in a decrease in profits significant. Even based on the related Asian Development Bank (ADB) survey, the impact of the pandemic on MSMEs in Indonesia, 88% of micro businesses run out of cash or savings, and more than 60% of these micro and small enterprises have reduced their workforce work.

scholarly journals ENTREPRENEURSHIP DEVELOPMENT AS A PANACEA FOR DEPRESSED ECONOMY

2019 ◽  
pp. 29-37
Author(s):  
Uju Sussan Muogbo Ph.D ◽  
Eze Solomon Uchechukwu
Keyword(s):  
Adverse Effect ◽  
Economic Development ◽  
Research Method ◽  
Small And Medium Enterprises ◽  
Regression Method ◽  
Small Enterprises ◽  
Entrepreneurship Development ◽  
Anambra State ◽  
Descriptive Research ◽  
Medium Enterprises

The study examined entrepreneurship development as a panacea for a depressed economy with particular reference to selected Small and Medium Enterprises in Anambra State Nigeria. The main objective of the study is to examine the need to cushion the adverse effect of depressed economy through entrepreneurship development in Nigeria. Related literatures were reviewed. The study adopted descriptive research method in which data generated through questionnaire and oral interview were analyzed. The population of the study was 160 owners and staff of small enterprises selected at random from their various firms. The hypotheses formulated in the study were testing ANOVA and Regression method. The study revealed that entrepreneurship development plays a key role in the process of economic development through employment creation, increase in investment and consumption of a nation thereby revamping the depressed economy. The study therefore concludes that entrepreneurship development remains a panacea for a depressed economy such as Nigeria. The study recommends that government should encourage entrepreneurship development through the provision of incentives to entrepreneurs and standing as a guarantor for loans given to aspiring entrepreneurs so as to improve their contribution to Gross Domestic Product.

scholarly journals The Role Of Small Micro Enterprises In Production Snack And Product Innovation Towards Additional Community Economic Income In Tangerang City

2021 ◽  
Vol 19 (1) ◽  
pp. 87
Author(s):  
Heri Satrianto ◽  
Berlin Silaban ◽  
Rinintha Parameswari
Keyword(s):  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Micro And Small Enterprises ◽  
Medium Enterprises ◽  
Positive Effect ◽  
Micro Enterprises ◽  
Economic Income

The study is intended to determine The Role of Small Micro Enterprises in Production Snack and Product Innovation towards an Additional Community Economic in Tangerang City. Micro small and medium enterprises (MSMEs) have an important role in the economy of Indonesian society. Indonesia government also views the existence of MSME businessman as important. The existence of MSMEs can have an effect on increasing people's income and also with the innovation of snacks that can attract consumers. The method used quantitative which was taken, it can be conclude that Whereas t count is 6,453> t table is 1,985 and the sig o.oo value <0.05, this shows that the role of Micro and Small Enterprises in production snacks has a significant and positive effect on the addition of community economic income in Tangerang City. That t count is 5,568> t table is 1,985 and the sig o.oo value <0.05, this shows that product innovation has a significant and positive effect on the addition of community economic income in Tangerang City. Whereas F count is 161,927> from F table of 3.09 and sig value of 0,000 <0.05, this shows that the Micro and Small Entrepreneurs Production snacks together with product innovation have a significant and positive effect on the addition of community economic income in Tangerang City.

scholarly journals DETERMINAN PREFERENSI STRUKTUR MODAL USAHA MIKRO DAN KECIL

2017 ◽  
Vol 17 (3) ◽  
pp. 318
Author(s):  
Khaira Amalia Fachrudin
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Logistic Regression Model ◽  
Financial Institution ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Alpha Level ◽  
External Capital ◽  
Micro And Small Enterprises ◽  
Medium Enterprises

Capital structure is the mix of sources of funds used by a firm.  Capital structure of Micro and Small Enterprises can be determined by several factors such as owners characteristics and firm’s characteristics.  This study aims to investigate the determinants of financing preferences MSEs owners at USU Market in Padang Bulan Medan.  The determinants consist of owners characteristics and firm’s characteristics.  The owner characteristics consists of education, entrepreneurability, and experience. Meanwhile, the firm’s characteristic used is firm size. Structured questionnaires were used to collect data from 100 micro and small enterprises.  Logistic regression model was used to test several literature-driven hypotheses. The results at the 5% alpha level show that firm size has a significant influences on the capital structure preferences of SMEs. Other variables have no significant effects.  The implication is that the larger the size, the greater opportunities of small and medium enterprises to use external capital. It is difficult for smaller enterprises to access external capital due to the minimum collateral.  They also have lack of time for the loan adimistration process.  The official financial institution needs to pay full attention to help the the smaller enterprises to get the capital needed for their business expansion.

scholarly journals Growth of Pradhan Mantri Mudra Yojna (Pmmy) in Haryana State

2019 ◽  
Vol 8 (12) ◽  
pp. 2957-2960
Keyword(s):  
Developing Countries ◽  
Financial Support ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Small Scale ◽  
Poor People ◽  
Small Enterprises ◽  
Micro And Small Enterprises ◽  
Medium Enterprises

Small scale businesses are the source of livelihood for people in India. People depend upon organised as well as unorganised sector for their loan, but most of the businesses depend upon unorganised sector loan. The unorganised sector loan is very unplanned and creating problem for poor people to fall in debts. For developing countries like India the unorganised sector plays a important role for developing businesses. In 2015 government of India launched Pradhan Mantri Mudra Yojna known as Mudra for developing micro and small enterprises. Pradhan Mantri Mudra Yojna is providing financial support and important schemes of financial inclusion. Under this inclusive scheme, one can take loan upto Rs.10 lakh to in initiate their business. This paper highlights on the development of Mudra yojna in Haryana state for developing small and medium enterprises also focuses on product offered by banks to enterprises for developing weaker sections of the society especially priority sector.

Analisis Kelayakan Manajemen Usaha Kuliner

2019 ◽  
Vol 7 (3) ◽  
pp. 313-324
Author(s):  
Mashadi Mashadi ◽  
Andi Yudha Amwila
Keyword(s):  
Small And Medium Enterprises ◽  
Descriptive Study ◽  
Government Policies ◽  
Small Scale ◽  
Measurement Tool ◽  
Small Enterprises ◽  
Regulatory Standards ◽  
Long Time ◽  
Micro And Small Enterprises ◽  
Medium Enterprises

Small and Medium Enterprises in the Suryakencana area have been established and have been in operation for a long time. some businesses are developing rapidly, some are not much different since it was founded. Permen-Par RI 28/2015 which pays attention to three aspects : product aspects, service aspects and management aspects, is set to be used as a measurement tool to assess the feasibility of management of a culinary business. The purpose of this study is to evaluate and measure the suitability of the application of Permen-par 28/2015 on food business activities on a Micro and Small scale. This research method is a descriptive study using surveys as a method of identifying facts and collecting data. The sample of this research is the UMK in the Culinary Tourism area of ​​Jalan Suryakencana Bogor with 68 MSEs as respondents. Data that is collected will be grouped according to criteria for the type of assessment in the Frequency Distribution Table which is then interpreted as a material for discussion. The results showed that there were discrepancies in the conditions and implementation of Micro and Small Enterprises in the Suryakencana Street area of ​​Bogor with the Permen-par 28/2015. Micro and small-scale food businesses have not yet fully implemented Permen-par 20/2015. No more than five percent of MSEs that claim to have applied and are in accordance with these regulatory standards. The obstacles faced by MSEs in implementing Permen-par 28/2015, among others: limited knowledge, limited funding, and government policies that have not technically supported MSEs.   Keywords : small business, permenpar 28/2015

Cash Waqf Crowdfunding Model for SMEs

2020 ◽  
pp. 338-353
Author(s):  
Rashedul Hasan ◽  
Abu Umar Faruq Ahmad
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Islamic Finance ◽  
Access To Finance ◽  
Relevant Publication ◽  
Medium Enterprises ◽  
Structured Literature Review ◽  
Sme Financing

Small and Medium Enterprises (SMEs) play a vital role in the economic growth. However, the industry has been facing challenges due to lack of access to finance among entrepreneurs. This chapter explores alternative financing platforms for SMEs and proposes specific solutions to the credit risk of SMEs. Authors used a structured literature review approach to analyse relevant publication to provide evidence on the application of cash Waqf as a viable source of Islamic finance for the SME sector. The donation-based cash Waqf model for SME financing is developed under the lens of stakeholder theory and Maqasid al-Shari'ah. The model is expected to provide greater insight to Waqf institutions on their role to operationalise the conceptual model in fostering the growth of SMEs and change the perception of stakeholders about the dynamics and potential of cash Waqf in economic development.

Commercial Banks Finance and Economic Empowerment in Women-Owned Micro and Small Enterprises in India- A Study on Engineering Sector of Howrah, West Bengal

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Manidipa Das Gupta ◽  
Radhagobinda Basak
Keyword(s):  
Commercial Banks ◽  
West Bengal ◽  
Small And Medium Enterprises ◽  
Economic Empowerment ◽  
Small Enterprises ◽  
Financial Policies ◽  
Micro And Small Enterprises ◽  
High Level ◽  
Medium Enterprises ◽  
Tools And Techniques

Micro and small enterprises (MSEs) play a significant role in introducing high level of socio-economic empowerment to all levels of social beings with its huge contribution in production, export promotion, employment generation, and value addition. Besides, it is well capable in redressing off the concomitant hazards of our nation like unemployment, poverty etc. The beneficial effect of the very sector is increased sharply if it is being participated by the marginalized gender section of our society, women. Notwithstanding, the sector cannot protect itself from several down-gradation in its survival due to several controllable and/or uncontrollable causes amongst which the inadequate need-based finance is considered to be the most severe one (All India Fourth Census Report of Ministry of Micro, Small and Medium Enterprises (MSMEs), 2006-2007). In this context, the Central Bank has declared many promotional financial policies for the neediest sector of economy which has been allowed to be practiced by all the financial institutions of which the Commercial Banks (CBs) are the most significant ones. But CBs sometimes are blamed for their unfriendly partial attitude towards the very sector for their sole emphasis on commercialization. The women-owned MSEs in this context sometimes suffer a lot for the gender-discriminative credit policy of the CBs. In India, amongst different states, West Bengal (WB) is taken as a significant contributor so far as the number of women-owned MSEs and their performances are concerned. WB here specially recognizes the engineering sector of Howrah, the former Birmingham of the East, for its special contribution in socio-economic development of it. Though men-dominated sector, women-owned units here are also found to perform prestigiously irrespective of different hindrances mainly originated from need-based financial lacuna. CBs here are also found to be responsible ones reflecting the nation-wide picture over there which ultimately puts a question on proper implementation of financial policies to serve the marginalized gender section of the society. The present paper, therefore, aims at identifying to what extent the financial assistance of Commercial Banks empowers economically the women-owned micro and small engineering enterprises of Howrah and recommending some suggestions for further improvement following descriptive research methodology and relevant statistical tools and techniques.

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