Authors :
Lisa Hermawati; Ema Pusvita; Siti Khairani
Volume/Issue :
Volume 9 - 2024, Issue 12 - December
Google Scholar :
https://tinyurl.com/yxevzazh
Scribd :
https://tinyurl.com/22bnayrv
DOI :
https://doi.org/10.5281/zenodo.14540114
Abstract :
Financial access was a key factor in supporting
the development of small and medium-sized enterprises
(SMEs). This study aimed to analyze the effect of financial
variables, such as the amount of loans received, financing
frequency, speed of fund disbursement, and ease of access
to development institutions, on SME development
measured by income growth. Data were collected from 40
SME respondents through surveys using the snowball
sampling technique. Multiple regression analysis showed
that the amount of loans received and financing frequency
had a positive and significant effect on SME development,
with beta values of 0.582 and 0.407, respectively. However,
the speed of fund disbursement and ease of access to
development institutions did not have a significant effect.
The model achieved an R Square value of 86%, indicating
that 86% of the variation in SME development was
explained by the independent variables analyzed. The
findings implied that sustainable financial management
and the provision of adequate loans were priorities in
supporting SME growth.
Keywords :
Financial Access, Smes, Loan Amount, Financing Frequency, Business Development.
References :
- Andi, Saiful-Haq., Endang, Tirtana., Azhari, Aziz, Samudra., Evi, Satispi. (2024). Government strategy to revive SMEs from post-COVID-19 collapse: Analysis of economic improvement for lower class communities in Jakarta, Indonesia. Journal of infrastructure, policy and development, 8(8):7314-7314. doi: 10.24294/jipd.v8i8.7314
- Ahmed, Idi, Kato., Germinah, Evelyn, Chiloane-Tsoka., Paddy, Mugambe. (2024). Unlocking the potential: the influence of sustainable finance solutions on the long-term sustainability of small and medium-sized enterprises. Cogent Business & Management, 11(1) doi: 10.1080/23311975.2024.2391122
- Ayeen, O., Dacanay., Bleselle, M., Gernalin., Haselle, R., Miguel., Julianne, Marie, V., Cunanan., Kenneth, L., Armas. (2024). Leveraging Lending Institutions for Sustainable Growth: Implications for Sales Growth and Profitability in Small and Medium Enterprises. International Journal of Advanced engineering, Management and Science, 10(5):088-095. doi: 10.22161/ijaems.105.4
- Asian Development Bank (ADB). (2024). Bridging the Gap: Financing Solutions for SMEs in Asia-Pacific. https://www.adb.org/publications/financing-smes-asia-pacific
- Allen, F., Demirguc-Kunt, A., Klapper, L., & Martinez Peria, M. S. (2023). Financial Innovations and Inclusion for SMEs in Emerging Economies. DOI: 10.1016/j.jfi.2023.08.004
- Beck, T., & Demirguc-Kunt, A. (2022). Small and Medium-Sized Enterprises: Access to Finance as a Growth Constraint. DOI: 10.1596/978-1-4648-0182-1
- Dedi, Riswandi., Agung, Zulfikri. (2024). Financial Inclusion, Ethical Investment, And Corporate Social Responsibility: A Comprehensive Analysis Of Factors Affecting Sustainable Finance In Indonesian MSMEs. Costing, 7(4):10853-10868. doi: 10.31539/costing.v7i4.9657
- Ebes, Esho., Grietjie, Verhoef. (2018). The Funding Gap and the Financing of Small and Medium Businesses: An Integrated Literature Review and an Agenda.
- Financing SMEs. (2023). Financing SMEs for sustainability – Financial institution strategies and approaches. OECD SME and entrepreneurship papers, doi: 10.1787/b3fe3647-en
- Financing SMEs for sustainability. (2022). OECD SME and entrepreneurship papers, doi: 10.1787/a5e94d92-en
- Galih, Rahmadi., Arif, Murti, Rozamuri. (2024). From Grassroots to Growth: Strengthening Communities through Financial Support for SMEs. Golden Ratio Of Community Services And Dedication, 4(1):46-56. doi: 10.52970/grcsd.v4i1.594
- Helmina, Br., Ginting., Syamsu, Rijal. (2024). Assessing The Role Of Environmental Innovation, Credit Access, And Governance In Shaping The Financial Sustainability Of Indonesian MSMEs. Costing, 7(4):10834-10852. doi: 10.31539/costing.v7i4.9655
- Ida, Ayu, Agung, Idawati., I, Gede, Surya, Pratama. (2020). Pengaruh Literasi Keuangan Terhadap Kinerja dan Keberlangsungan UMKM di Kota Denpasar. 2(1):1-9. doi: 10.22225/WMBJ.2.1.1644.1-9
- Kujtim, Zylfijaj., Dimitar, Nikoloski. (2016). The impact of access to finance in performance of formal and informal SMEs: Evidence from Kosovo.
- Marie, Finnegan., Lucía, Morales. (2024). 6. A methodological framework for exploring SME finance with SAFE data. PLOS ONE, doi: 10.1371/journal.pone.0307361
- Nina, Ashley, O., Dela, Cruz., Alyssa, Cyrielle, Villanueva., Lovely, Ann, C., Tolin., Sabrina, Disse., Robert, Lensink., Howard, White. (2023). PROTOCOL: Effects of interventions to improve access to financial services for micro‐, small‐ and medium‐sized enterprises in low‐ and middle‐income countries: An evidence and gap map. Campbell Systematic Reviews, 19(3) doi: 10.1002/cl2.1341
- Nabilah, Charisma, Azelia., Asidigisianti, Surya, Patria. (2022). Perancangan Identitas Visual UMKM Ecoprint Girly Lestari di Surabaya. Jurnal SASAK, 4(2):93-103. doi: 10.30812/sasak.v4i2.2121
- Organisation for Economic Co-operation and Development (OECD). (2023). Unlocking the Potential of SMEs: A Financial Perspective. DOI: 10.1787/sme-2023-en
- Thorsten, Beck., Asli, Demirguc-Kunt. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking and Finance, 30(11):2931-2943. doi: 10.1016/J.JBANKFIN.2006.05.009
- United Nations Development Programme (UNDP). (2023). Financial Inclusion and Sustainable Development Goals. Website: https://www.undp.org/financial-inclusion
Financial access was a key factor in supporting
the development of small and medium-sized enterprises
(SMEs). This study aimed to analyze the effect of financial
variables, such as the amount of loans received, financing
frequency, speed of fund disbursement, and ease of access
to development institutions, on SME development
measured by income growth. Data were collected from 40
SME respondents through surveys using the snowball
sampling technique. Multiple regression analysis showed
that the amount of loans received and financing frequency
had a positive and significant effect on SME development,
with beta values of 0.582 and 0.407, respectively. However,
the speed of fund disbursement and ease of access to
development institutions did not have a significant effect.
The model achieved an R Square value of 86%, indicating
that 86% of the variation in SME development was
explained by the independent variables analyzed. The
findings implied that sustainable financial management
and the provision of adequate loans were priorities in
supporting SME growth.
Keywords :
Financial Access, Smes, Loan Amount, Financing Frequency, Business Development.