Investigating the Capital Strengthening Program for Micro and Small Business Enterprises: Financing Feasibility Analysis

Abstract

The purpose of this study is to analyze the perceptions of MSME actors on capital strengthening programs for micro and small cooperatives, analyze the feasibility (1) of financing with the 5C principle and implementation of policies, (2) analyze the influence of MSME actors' perceptions of capital strengthening programs for micro cooperatives and small impact on policy implementation, as well as the influence of the two variables simultaneously. This research was conducted using quantitative methods by capturing information from quantitative data. Quantitative data were obtained from field studies distributing questionnaires and official government agency publications. This study uses a validity test, reliability test, classic assumption test, multiple linear analysis, hypothesis testing, and the coefficient of determination. The study results concluded that the amount of arrears each year was increasing. The perceptions of SMEs towards the capital strengthening program for micro and small cooperatives did not significantly affect policy implementation. Furthermore, the analysis of Financing Feasibility with the 5C principle has a positive result. However, no significant effect on Policy Implementation, as well as for the variable Perceptions of MSME Actors on the Capital Strengthening Program for Micro and Small Cooperatives and the Feasibility Analysis of Financing with the 5C principle simultaneously does not have a positive and significant influence on Policy Implementation.