An Analysis of Micro-enterprises Actors Access towards the Formal Financial Services in Siak Regency


Authors : Dr. Sri Indarti, Rendra Wasnury

Volume/Issue : Volume 4 - 2019, Issue 11 - November

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://bit.ly/2scQkd7

In general, the study of access to micro- business to formal financial services is to find out the access of the community (micro business operators) to formal financial services for business capital carried out in Siak Regency. Analysis of the access of small and micro-entrepreneurs to formal and informal financial services, by identifying the types of financing from formal and informal financial institutions that are still utilized by business actors to date. Furthermore, it uses factor analysis to determine considerations in accessing formal and non-formal finance. Based on the analyzed binary logistic regression coefficient values obtained can be interpreted as follows, age has a positive effect on the opportunity of business actors to access financial institutions, but it is not significant or does not significantly affect the opportunity of business operators access to financial institutions, which can be seen from Sig. α> 0.05 (0.366> 0.05). The net income of business actors from operating results has a negative effect on the opportunities for access to business actors in financial institutions and is not significant to the level of α = 0.05. The level of education has a negative effect on the opportunity for business operators to access financial institutions and the level of significance is not> 0.05. The frequency of borrowing has a positive and significant relationship to the level of α <0.05 on the opportunity of business actors to access financial institutions and the total income has a positive effect on the opportunity of business actors to access financial institutions. The higher the level of income the greater the opportunities for micro and small entrepreneurs to access financial institutions and not significant to the level of α = 0.05. Micro and small business actors in Siak Regency have access to financial institutions both formal and informal, in the sense that they have and are currently accessing both borrowing and saving money at these financial institutions. As a suggestion to improve the access of micro and small businesses to formal financial institutions such as banks, the Government of Siak Regency should implement a program that can be a place for micro and small businesses to interact with one another in an effort to create business competitiveness.

Keywords : Micro Enterprises, Bank-Cable, Loan.

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