Micro Financing Optimalization Strategy for MSMEs Development (Case Study at Kabupaten Bogor, Indonesia)

Ana Yuliana Jasuni,Bunasor Sanim,Muhammad Firdaus

doi:10.17358/ijbe.4.2.161

Abstract

MSMEs have a great number of important roles in the economy of a country and should be developed and empowered. The main thing needed in the effort to boost the performance of MSME is support in terms of business funding. The impact of microfinance should be optimized through the appropriate strategies of all parties involved. Through appropriate microfinance strategies, MSMEs are expected to experience significant growth. The purpose of this research is to identify factors influencing access of micro finance and, impact of micro financing and to formulate strategy in optimizing microfinance for MSMEs in Bogor Regency. The primary data obtained from the owners of MSMEs of bag and footwear industries was were analyzed using logistic regression and rank test marked Wilcoxon. The primary data from the experts were analyzed using AHP method. The results showed that the factors that influence access to microfinance are monthly profits, total assets and savings access. Microfinance has a positive impact on almost all aspects of MSME performance. The right strategy to optimize microfinance is the CSR partnership financing program. Keywords: AHP, micro financing, MSMEs, Wilcoxon

Highlights

As an Indonesian policy, MSMEs development is one top priority to help the development of national economy
MSMEs have a great number of important roles in the economy of a country and should be developed and empowered
The primary data obtained from the owners of MSMEs of bag and footwear industries was were analyzed using logistic regression and rank test marked Wilcoxon

Summary

Introduction

As an Indonesian policy, MSMEs development is one top priority to help the development of national economy. MSMEs are the answer to the problems like income difference and poverty. They are the place where inovations begin and play a role in distributing development outcomes. They are not vulnerable to crises and tend to survive in an economic crisis. In 2013, MSMEs in Indonesia had 99% of market shares, absorbed 97% of labor, and contributed 60% to GDP (Ministry of Cooperatives and SMEs). Safiriyu and Njogo (2012) state that a region can reduce poverty by actively promoting the growth of MSMEs

Methods

Results

Conclusion