PREFERENSI SUMBER PEMBIAYAAN PADA USAHA MIKRO, KECIL, DAN MENENGAH DI KOTA MAGELANG

Abstract

The role of Micro, Small, and Medium Enterprises (MSMEs) in national development is prividing employement, being an important player in development of local economy, and has a role as a creator of new markets and sources of innovation. The limited access of MSMEs to source of conventional financing is a classic problem that has not been solved. The lack of optimal utilization of funding sources in order to increase capital has an impact on business stagnation and the difficulty of MSMEs to develop their businesses. This study aims to analyze the relationship between preferences and financing sources use by MSMEs in Magelang City. This research used proportional cluster random sampling method. Data obtained by survey techniques and filling out questionnaires that have been distributed to 121 MSMEs in Magelang City. The results showed that the most preferred source of financing by MSMEs in Magelang City was financing from internal/own capital, while the funding sources from other informal loans is the most undesirable to be chosen by MSMEs. The results also showed that the level of MSME preference towards financing sources from banks loan, government aid, and loans from cooperatives have influenced the selection and use of these funding sources. On the other hand, the level of preference towards internal financing sources, shared capital, loans from family/friends, and other informal loans do not support the selection and use of these funding sources in order to develop their business.