Influence of Microcredit and Business Management Training to Micro and Small Business Performance in West Java, Indonesia

DOI

10.2991/aebmr.k.200131.031How to use a DOI?

Keywords

MSME, Microcredit, Business Management, Training

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of national economy. However, there are still many problems faced by SMEs among other are the availability of capital, the difficulties to access finan-cial institution as a lender, low understanding in business management, limited market access, and lack of sci-ence and technology mastery. This study aims to analyze the effectiveness of microcredit financing provided by banks and business management training on MSMEs performance. The method used in this research is mixed method using Sequential Explanatory Analysis. Quantitative data was analyzed with Partial Least Square (PLS) and to convert ordinal data into interval data this study used Rasch Model. The subject of this study is the customers who are getting microcredit loan from Jabar-Banten Bank (BJB) located in Regional 1. The results show that microcredit financing and business management training partially have a positive and significant impact on the performance of MSMEs with path coefficients 8.352, which is bigger than 1.96 (t-stat). It means that good quality of microcredit and the good quality of training on business man-agement would result in a better business performance for MSMEs.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - F.D. Trisnasih
AU  - L. Layyinaturrobaniyah
AU  - A. M. Siregar
PY  - 2020
DA  - 2020/02/07
TI  - Influence of Microcredit and Business Management Training to Micro and Small Business Performance in West Java, Indonesia
BT  - Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)
PB  - Atlantis Press
SP  - 147
EP  - 149
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200131.031
DO  - 10.2991/aebmr.k.200131.031
ID  - Trisnasih2020
ER  -