Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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Analysis of MSME Financial Intelligence Level in the Utilization of Peer-to-Peer (P2P) Lending as a Financing Alternative in Batam City

Authors
Rony Ukurta Barus1, *, Isfenti Sadalia1, Chairul Muluk1
1University of North Sumatra, Medan, Indonesia
*Corresponding author. Email: rony.barus@hotmail.com
Corresponding Author
Rony Ukurta Barus
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_27How to use a DOI?
Keywords
Micro; Small and Medium Enterprises; Peer-to-Peer Lending; Financing; Capital
Abstract

Micro, Small, and Medium Enterprises (MSME) is Indonesia’s main corporate sector, with 97% of Indonesia’s total workforce. Capital fulfillment is one of the obstacles to MSME’s development. While most Indonesian MSMEs have various weaknesses in meeting banking requirements for financing, technological developments in the financial services sector have created peer-to-peer (P2P) lending service providers. However, the existence of P2P lending is not perfect for MSME alternative lending in Indonesia, including Batam city. The study aims to analyze SMEs’ level of financial intelligence when using P2P lending as alternative lending. The location of this survey was Batam, with respondents from up to 150 SMEs in Batam. This study is related to data analysis techniques using the partial least squares (PLS) method using SmartPLS software version 3. The results show that the level of financial intelligence of MSME actors in Batam is still low to understand the benefits of P2P. Credit as an alternative. It can be used to raise funds to meet the business capital. This study concludes that MSMEs need to better understand peer-to-peer lending services as an alternative funding source for their capital sufficiency.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
978-94-6463-008-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_27How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Rony Ukurta Barus
AU  - Isfenti Sadalia
AU  - Chairul Muluk
PY  - 2022
DA  - 2022/12/05
TI  - Analysis of MSME Financial Intelligence Level in the Utilization of Peer-to-Peer (P2P) Lending as a Financing Alternative in Batam City
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 201
EP  - 205
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_27
DO  - 10.2991/978-94-6463-008-4_27
ID  - Barus2022
ER  -