Different financial methods to finance agricultural small-medium enterprises: the case of Indonesia

Abstract

The need for supply of bank finance for A-in SMEs in Indonesia is explored in this article. This research achieves its aims and contributes to the area by investigating the present situation of bank financing for A-SMEs in Indonesia. This subject has gotten relatively less attention in the literature than the financing practices of A-SMEs in industrialized nations. The present research contributes to the existing literature on A-SME financing and on bank financing in the context of developing countries by analyzing the most recent innovations and practices in bank financing for A-SMEs in a developing country experiencing transition, Indonesia. Since the earlier research has been lacking, particularly in the setting of developing nations, the findings of this study contribute to the expanding body of information on the issue. Our knowledge of A-SME finance is still in its infancy since the issue has only lately aroused the attention of Indonesia's academic community. The most popular kind of external funding for A-SMEs, this research contributes by analyzing the different techniques and consequences of bank borrowing.