Abstract
The development of SMEs is largely determined by the existence of MFIs that offer financing models are diverse. It can be said that MFIs become a partner of SMEs in this regard as a financial services provider, through diverse financing models. But on the other hand the diversity of financing models offered by MFIs have not been fully able to be utilizedThis study used exploratory research, descriptive, experimental and applied research conducted in stages for the development of a comprehensive model of microfinance accommodative Informants determined based on the information needs. Using a descriptive and qualitative analysis of the MFI deliberately selected examples illustrate the following: (A) The existence of MFIs is recognized community has a strategic role as an intermediary in economic activity that has not affordable public services of banking institutions / conventional banks; (B) service MFIs have demonstrated success, but success can still be in business economics. Skim MFI lending to businesses has not received the priority, it is characterized by a relatively small ceiling (budget allocation) to support farming, which is less than 10% of the total ceiling of MFIs; (C) A critical factor in the development of the agricultural sector MFI lies in the institutional legality, capability management, seed capital support, the economic viability of farming, farm characteristics and technical assistance clients / service users MFIs; (D) To initiate the growth and development of agricultural MFIs needed guidance enhanced capabilities for HR candidates MFI managers, support the strengthening of capital and technical assistance to customers of credit users.Keywords: Financial Institutions Micro, Small Business Micro
Highlights
In order to accelerate the development of economic clusters cluster-based rural economic potential, the Community Empowerment Board of East Java Province in 2006, has launched the Economic Development Program Region which is the program as the action of the formation of regional productive economy that emphasizes economic development based on local economic potential of rural (Bapemas, 2007), as well as specially designed using the approach of productive economic region emphasis on utilization of local economic resources that focus on interrelationships and dependencies between actors in a network of production to services and innovation development efforts (Eko Aristanto, 2007)
By paying attention to these conditions and characteristics of the activities that have a tendency to empower micro businesses at a local level, we need the presence of microfinance institutions that have value alignments to micro enterprises, to be able to help in addressing the issues of business and technical assistance business management (Chotim, EE and Handayani, AD (2003)
By considering the conditions and characteristics of the activities that have a tendency to empower micro businesses at a local level, we need the presence of microfinance institutions that have value alignments to micro enterprises, to be able to help in addressing the issues of business and technical assistance business management (Chotim, EE and Handayani, AD (2003). under these conditions, this study will examine and formulate a model of microfinance institutions accommodating in developing economic clusters based on local economic potential in East Java Province
Summary
1.1 Research BackgroundIn order to accelerate the development of economic clusters cluster-based rural economic potential, the Community Empowerment Board of East Java Province in 2006, has launched the Economic Development Program Region which is the program as the action of the formation of regional productive economy that emphasizes economic development based on local economic potential of rural (Bapemas, 2007), as well as specially designed using the approach of productive economic region emphasis on utilization of local economic resources that focus on interrelationships and dependencies between actors in a network of production to services and innovation development efforts (Eko Aristanto, 2007). By paying attention to these conditions and characteristics of the activities that have a tendency to empower micro businesses at a local level, we need the presence of microfinance institutions that have value alignments to micro enterprises, to be able to help in addressing the issues of business (ie capital) and technical assistance business management (Chotim, EE and Handayani, AD (2003). By considering the conditions and characteristics of the activities that have a tendency to empower micro businesses at a local level, we need the presence of microfinance institutions that have value alignments to micro enterprises, to be able to help in addressing the issues of business (namely capital ) and technical assistance business management (Chotim, EE and Handayani, AD (2003). Analyze and anticipate the possibility of economic and social phenomena as the impact of the development of micro-financial agency and improve access layer based women's micro business districts in Kota Batu
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