Identifying accessibility of financing for MSMEs in East Java Indonesia

Maulana, Hartomi and Hastuti, Ely Windarti and Setiartiti, Lilies and Abdul Razak, Dzuljastri and Fachrunnisa, Olivia (2020) Identifying accessibility of financing for MSMEs in East Java Indonesia. In: Cross border SMEs: Malaysia & Indonesia. UMY Press, Bantul, Yogyakarta, pp. 91-106. ISBN 9786239168285

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Abstract

This chapter examined the extent to which MSMEs have accessibility to their financing in the current situation. Primary data was collected by self-administered questionnaires with a sample of 250 respondents from selected MSME owners in six different regencies in East Java. Descriptive statistics was employed in the analysis. The study revealed that conventional financing is preferred to Islamic financing. The study also indicated that personal savings, categorized as internal financing, are the largest sources of fund for MSMEs surveyed in initial, current and future time. This indicates that MSMEs de-pend highly on their savings for financing their daily business operations. However, the study also indicates that bank loans or external funding are considered to be most accessible, followed by personal savings and loans from relatives. Findings suggest that massive socialization on Islamic finan-cial literacy is absolutely needed to enhance the awareness of MSME owners on Islamic financing products.

Item Type:	Book Chapter
Additional Information:	4433/83839 - Library has no copy
Uncontrolled Keywords:	Accessibility, financing, MSMEs, East Java
Subjects:	H Social Sciences > HF Commerce > HF3000 By region or country H Social Sciences > HF Commerce > HF5001 Business. Business Administration
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr Dzuljastri Abdul Razak
Date Deposited:	20 Oct 2020 18:02
Last Modified:	20 Oct 2020 18:02
URI:	http://irep.iium.edu.my/id/eprint/83839

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