ULTRA MICRO FUNDING PROGRAM: SURVEY OF SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.37641/riset.v7i1.2599Keywords:
Funding, MSMEs, Ultra MicroAbstract
This study aims to determine how MSME actors in Palembang, South Sumatra, perceive MSME credit or financing that the government provides to MSME actors, especially at the micro level. This study uses questionnaires to obtain the perceptions of MSME actors towards MSME financing. The respondents of this study were MSME actors who participated in the “Beli Kreatif Sumatera Selatan (BKSS)” activity, a collaborative program of the Ministry of Tourism and Creative Economy with several stakeholders, one of which is the Ministry of Finance. The results of the questionnaires are then presented descriptively. Based on the questionnaire processing results, several things need attention, especially from MSME financing policymakers. The aspects that received the lowest assessment were regarding the equalization of credit to all levels of MSMEs and the amount of loans offered in the financing. In open questions, most respondents also expect interest-free Sharia financing. This study focuses on exploring the perceptions of MSME actors on financing or debt, which, for most MSMEs, is very difficult to access, especially at the micro level. The study results are expected to improve the design of MSME financing by the government.
Downloads
References
Abe, M., Troilo, M., & Batsaikhan, O. (2015). Financing Small and Medium Enterprises in Asia and The Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2–32. https://doi.org/10.1108/JEPP-07-2012-0036
ADB. (2022). Financing Small and Medium-Sized Enterprises in Asia and the Pacific. https://doi.org/10.22617/TCS220030-2
Adelekan, A. S. (2021). Islamic Financing Effects on Small Medium Enterprises Competitiveness. Journal of Islamic Economic and Business Research, 1(1), 100–113. https://doi.org/10.18196/jiebr.v1i1.11753
Ahmed, A. M., Sharif, N. A., Ali, M. N., & Hágen, I. (2023). Effect of Firm Size on The Association between Capital Structure and Profitability. Sustainability, 15(11196), 1–17. https://doi.org/10.3390/su151411196
Al-Afifi, A. A. M. (2019). Factors Affecting Decision Makers Preference of MSMEs in Financing Sources Choice. International Journal of Business Ethics and Governance, 2(2), 16–29. https://doi.org/10.51325/ijbeg.v2i2.31
Al-Balushi, Y., Locke, S., & Boulanouar, Z. (2019). Determinants of The Decision to Adopt Islamic Finance: Evidence from Oman. ISRA International Journal of Islamic Finance, 11(1), 6–26. https://doi.org/10.1108/IJIF-02-2018-0020
Al-Fozaie, M. T. (2023). Behavior, Religion, and Socio-Economic Development: A Synthesized Theoretical Framework. Humanities and Social Sciences Communications, 10(241), 1–15. https://doi.org/10.1057/s41599-023-01702-1
Ali, M. M. (2015). Borrowers’ Perception: SMBEs Financing by The Banking Sector of Bangladesh. DIU Journal of Business and Entrepreneurship, 9(1), 53–76. https://doi.org/10.36481/diujbe.v09i1.5sskcn33
Alikouzay, Z. (2023). Firm Characteristics and Capital Structure: Exploring The Determinants of Financing Choices in European Markets. https://essay.utwente.nl/95162/1/Alikouzay_MA_Faculty.pdf
Ariesta, A. (2021). 40 Percent of MSMEs Decide to Close Down Due to Impact of Pandemic. IDX Channel. https://www.idxchannel.com/economics/40-persen-pelaku-umkm-putuskan-gulung-tikar-akibat-terdampak-pandemi
Arjawa, I. G. W., Pulawan, I. M., & Laksmi, P. A. S. (2025). The Government’s Role in Improving MSME Business Performance in Denpasar City. Dinasti International Journal of Economics, Finance & Accounting (DIJEFA), 5(6).
Attrams, A. S., & Tshehla, M. (2022). Collateral Ability of Small and Medium-Sized Enterprises Financing in A Developing Country. Journal of The International Council for Small Business, 3(3), 237–245. https://doi.org/10.1080/26437015.2021.1982370
Baker, H. K., Kumar, S., & Rao, P. (2020). Financing Preferences and Practices of Indian SMEs. Global Finance Journal, 43(100388). https://doi.org/10.1016/j.gfj.2017.10.003
Bakhtiari, S., Breunig, R., Magnani, L., & Zhang, J. (2020). Financial Constraints and Small and Medium Enterprises: A Review. Economic Record, 96(315), 506–523. https://doi.org/10.1111/1475-4932.12560
Becker, S. O., Rubin, J., & Woessmann, L. (2024). Religion Matters for Economic Growth through Various Channels. VOXEU CEPR. https://cepr.org/Voxeu/Columns/Religion-Matters-Economic-Growth-through-Various-Channels
Bergthaler, W., Kang, K., Liu, Y., & Monaghan, D. (2015). Tackling Small and Medium Enterprise Problem Loans in Europe (SDN/15/04; Staff Discussion Notes, Vol. 15, Issue 4). https://doi.org/10.5089/9781498384834.006
Brodowicz, M. (2024). The Role of Perception in Shaping Human Behavior and Decision Making. Aithor. https://aithor.id/essay-examples/the-role-of-perception-in-shaping-human-behavior-and-decision-making
Catalán, F. C., di Pietro, F., & Ponce, A. T. (2021). Post-COVID-19 SME Financing Constraints and The Credit Guarantee Scheme Solution in Spain. Journal of Banking Regulation, 22(3), 250–260. https://doi.org/10.1057/s41261-021-00143-7
Chowdhury, M., & Alam, Z. (2017). Factors Affecting Access to Finance of Small and Medium Enterprises (SMEs) of Bangladesh. USV Annals of Economics and Public Administration, 2(26), 55–68. https://touroscholar.touro.edu/cgi/viewcontent.cgi?article=1012&context=gsb_pubs
Damara, D. (2022). Oops! 30 Million Ultra Micro Businesses Have Not Yet Received Access to Banking Services. Bisnis.Com. https://finansial.bisnis.com/read/20220210/90/1499079/duh-30-juta-usaha-ultra-mikro-belum-dapat-akses-layanan-perbankan
Dandi, D., Rahayu, E., & Aminus, R. (2024). The Influence of Company Size and Capital Structure on Company Profitability in PT Trisakti Otto Pratama in Palembang. Jurnal Manajemen, 12(3), 250–259. https://doi.org/10.36546/jm.v12i3.1288
Dash, P., & Ranjan, R. (2023). Addressing MSMEs’ Financing Challenges through G20 Action. https://t20ind.org/wp-content/uploads/2023/07/TF5_503_MSME-Financing-Challenges.pdf
David, I. Ben, Palvia, A. A., & Stulz, R. (2020). How Important is Moral Hazard for Distressed Banks? (681/2020; Finance Series). https://www.ecgi.global/publications/working-papers/how-important-is-moral-hazard-for-distressed-banks
Disli, M., Yilmaz, M. K., & Mohamed, F. F. M. (2022). Board Characteristics and Sustainability Performance: Empirical Evidence from Emerging Markets. Sustainability Accounting, Management and Policy Journal, 13(4), 929–952. https://doi.org/10.1108/SAMPJ-09-2020-0313
Financial Services Authority. (2023). Indonesian Islamic Finance Report (LPKSI) 2022. https://ojk.go.id/en/berita-dan-kegiatan/info-terkini/Pages/Indonesian-Islamic-Finance-Report-2022.aspx
Fosnacht, K., & Calderone, S. M. (2017). Undergraduate Financial Stress, Financial Self-Efficacy, and Major Choice: A Multi-Institutional Study. Journal of Financial Therapy, 8(1), 107–123. https://doi.org/10.4148/1944-9771.1129
Fouejieu, A. P., Ndoye, A., & Sydorenko, T. (2020). Unlocking Access to Finance for SMEs: A Cross-Country Analysis (2020/055; Working Paper No. 2020/055). https://www.imf.org/en/Publications/WP/Issues/2020/03/13/Unlocking-Access-to-Finance-for-SMEs-A-Cross-Country-Analysis-49243
Gupta, C. P., & Jain, A. (2022). A Study of Banks’ Systemic Importance and Moral Hazard Behaviour: A Panel Threshold Regression Approach. Journal of Risk and Financial Management, 15(537), 1–23. https://doi.org/10.3390/jrfm15110537
Jatmiko, B. (2021). Optimizing Ultra Micro Credit: Efforts to Empower The Economy of Marginalized Communities. Kompasiana. https://www.kompasiana.com/bagusjatmiko71/619cac2c40fe4e1ff358aff2/optimalkan-kredit-ultra-mikro-upaya-memberdayakan-ekonomi-masyarakat-marjinal?page=2&page_images=1
Jomon, T. K. (2024). Legal Frameworks and Regulatory Challenges in Fostering Sustainable Growth for Micro, Small, and Medium Enterprises (MSMEs): A Management Perspective. Roussian Law Journal, 12(1), 2041–2046. https://www.russianlawjournal.org/index.php/journal/article/view/4328
Lamazi, L. (2020). The Influence of MSMEs on Economic Growth in South Sumatra. Juripol (Jurnal Institusi Politeknik Ganesha Medan), 3(1), 103–108. https://doi.org/10.33395/juripol.v3i1.10491
Limanseto, H. (2024). Coordinating Minister Airlangga: Government Supports New Forms of Collaboration for Indonesian MSMEs to Become Part of Global Industrial Supply Chain. Coordinating Ministry for Economic Affairs of the Republic of Indonesia. https://www.ekon.go.id/publikasi/detail/5885/menko-airlangga-pemerintah-dukung-bentuk-kolaborasi-baru-agar-umkm-indonesia-jadi-bagian-rantai-pasok-industri-global
Macedonia2025. (2020). Barriers for Access to Finance for MSMEs in North Macedonia: Stock of Existing Data and Knowledge. https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_emp/@emp_ent/@ifp_seed/documents/publication/wcms_804266.pdf
Madan, N. (2020). A Review of Access to Finance by Micro, Small and Medium Enterprises and Digital Financial Services in Selected Asia-Pacific Least Developed Countries (WP/20/03; Macroeconomic Policy and Financing for Development Division).
Mandasari, J. (2024). The Role of Company Size, Company Value, and Liquidity in Capital Structure of Food and Beverages Companies. ECo-Fin, 6(2), 208–216. https://doi.org/10.32877/ef.v6i2.1328
Manyanga, W., Kanyepe, J., Chikazhe, L., & Manyanga, T. (2023). The Effect of Debt Financing on The Financial Performance of SMEs in Zimbabwe. Cogent Social Sciences, 9(2282724), 1–19. https://doi.org/https://doi.org/10.1080/23311886.2023.2282724
Martinez, L. J. G., Kraus, S., Breier, M., & Kallmuenzer, A. (2023). Untangling The Relationship between Small and Medium-Sized Enterprises and Growth: A Review of Extant Literature. International Entrepreneurship and Management Journal, 19(2), 455–479. https://doi.org/10.1007/s11365-023-00830-z
Nassoro, G., & Jaraj, K. (2022). Challenges Small and Medium Enterprises (SMEs) Face in Acquiring Loans from Commercial Banks in Tanzania. African Journal of Business Management, 16(4), 74–81. https://doi.org/10.5897/AJBM2021.9295
Nizaeva, M., & Coskun, A. (2021). Determinants of The Financial Constraint and Its Effects on The SME Growth in Central Asia? Eurasian Journal of Business and Economics, 14(27), 1–28. https://doi.org/10.17015/ejbe.2021.027.01
Nugroho, A. P. (2023). Qualitative Investigation: Exploring The Challenges Faced by Indonesian SMEs in Accessing Financial Services in Sukabumi City. West Science Interdisciplinary Studies, 1(5), 41–50. https://doi.org/10.58812/wsis.v1i05.72
OECD. (2021). OECD SME and Entrepreneurship Outlook 2021. https://doi.org/10.1787/97a5bbfe-en
Okuwhere, M. P., & Osifo, O. (2022). Re-Evaluating Small and Medium Enterprises Financial Accessibility post COVID-19 Pandemic in Nigeria. Journal of Enterprise and Development, 4(2), 274–291. https://doi.org/10.20414/jed.v4i2.5857
Ozturk, H. (2020). Behavioral Aspects of Religiosity in Finance: A Brief Survey on Conventional versus Islamic Finance (787; IDE Discussion Papers). https://core.ac.uk/download/pdf/323141871.pdf
Petriella, Y. (2019). These are The 4 Regions with The Best Creative Economic Ecosystems. Bisnis.Com. https://ekonomi.bisnis.com/read/20190716/12/1124660/ini-4-daerah-dengan-ekosistem-ekonomi-kreatif-terbaik%0A%0A
PIP. (2021). Working in The Midst of a Pandemic. https://pip.kemenkeu.go.id/data-pip/files/document/4/3dbdcbfe5481df3b8541ece49d21a130.pdf
Qayyum, U., Anjum, S., & Sabir, S. (2020). Religion and Economic Development: New Insights. Empirica, 47(4), 793–834. https://doi.org/10.1007/s10663-019-09456-3
Raquiza, M. V. R. (2021). Micro, Small, and Medium Enterprise (MSME) Sector Financing: Issues and Challenges (UP CIDS Discussion Paper Series).
Ryu, S., & Fan, L. (2023). The Relationship between Financial Worries and Psychological Distress among U.S. Adults. Journal of Family and Economic Issues, 44(1), 16–33. https://doi.org/10.1007/s10834-022-09820-9
Saifurrahman, A., & Kassim, S. (2022). Collateral Imposition and Financial Inclusion: A Case Study among Islamic Banks and MSMEs in Indonesia. Islamic Economic Studies, 30(1), 42–63. https://doi.org/10.1108/IES-04-2022-0023
Sarofim, S., Minton, E., Hunting, A., Bartholomew, D. E., Zehra, S., Montford, W., Cabano, F., & Paul, P. (2020). Religion’s Influence on The Financial Well‐Being of Consumers: A Conceptual Framework and Research Agenda. Journal of Consumer Affairs, 54(3), 1028–1061. https://doi.org/10.1111/joca.12315
Sekaran, U., & Bougie, R. (2016). Research Methods For Business: A Skill Building Approach (7th ed.). New York: John Wiley & Sons.
Serrasqueiro, Z., Pinto, B., & Sardo, F. (2023). SMEs Growth and Profitability, Productivity and Debt Relationships. Journal of Economics, Finance and Administrative Science, 28(56), 404–419. https://doi.org/10.1108/JEFAS-01-2022-0018
Simonse, O., Dijk, W. W. Van, Dillen, L. F. Van, & Dijk, E. Van. (2024). Economic Predictors of The Subjective Experience of Financial Stress. Journal of Behavioral and Experimental Finance, 42(100933), 1–13. https://doi.org/10.1016/j.jbef.2024.100933
Sugiyono. (2022). Quantitative, Qualitative, and R&D Research Methods (29th ed.). Bandung: CV. Alfabeta.
Suhardjo, Y., Karim, A., & Taruna, M. S. (2022). Effect of Profitability, Liquidity, and Company Size on Capital Structure: Evidence from Indonesia Manufacturing Companies. Diponegoro International Journal of Business, 5(1), 70–78. https://doi.org/10.14710/dijb.5.1.2022.70-78
Vargas, H. C., Palacios, H. A. C., & García, J. J. L. (2022). Impact of Capital Structure and Innovation on Firm Performance. Direct and Indirect Effects of Capital Structure. Procedia Computer Science, 199, 1082–1089. https://doi.org/10.1016/j.procs.2022.01.137
Veiga, M. G., & McCahery, J. A. (2019). The Financing of Small and Medium-Sized Enterprises: An Analysis of the Financing Gap in Brazil. European Business Organization Law Review, 20(4), 633–664. https://doi.org/10.1007/s40804-019-00167-7
Wang, Y. (2016). What are The Biggest Obstacles to Growth of SMEs in Developing Countries? – An Empirical Evidence from An Enterprise Survey. Borsa Istanbul Review, 16(3), 167–176. https://doi.org/10.1016/j.bir.2016.06.001
Wangmo, C. (2016). Small and Medium Enterprise ( SME ) Financing Constraints in Developing Countries : A Case Study of Bhutan [Victoria University]. In International Journal of Arts & Sciences. https://vuir.vu.edu.au/32635/
Wignaraja, G. (2018). What Does RCEP Mean for Insiders and Outsiders? The Experiences of India and Sri Lanka (181; ARTNeT Working Paper Series). https://www.econstor.eu/bitstream/10419/181007/1/1028045468.pdf
Zakri, M., Rifai, A., & Kausar, K. (2021). Comparative Analysis of Transaction Costs and Borrower Perceptions of Lending Procedures at Financial Institutions in Bantan District, Bengkalis Regency. JIP (Jurnal Industri Dan Perkotaan), 17(1), 9–20. https://doi.org/10.31258/jip.17.1.9-20
Ziky, M., & Daouah, R. (2019). Exploring Small and Medium Enterprises’ Perceptions Towards Islamic Banking Products in Morocco. International Journal of Economics and Finance, 11(10), 106–117. https://doi.org/10.5539/ijef.v11n10p106
.png){kind=small}
.png){kind=small}
.png){kind=small}
.png){kind=small}
