An Effectiveness of Credit Financing Model and A Potential of Regional Economic for Micro and Small Business Entreprises in South Sumatera-Indonesia

Basyith, Abdul and Fatimah, Fatimah and Idris, Muhammad (2016) An Effectiveness of Credit Financing Model and A Potential of Regional Economic for Micro and Small Business Entreprises in South Sumatera-Indonesia. In: International Conference on Business, Economics, Socio-Culture and Tourism, 23-24 August 2016, Semarang, Indonesia.

[img] Text
ICBEST_CONFERENCE_2016.pdf

Download (366kB)

Abstract

This research is aimed at investigating (1) an effective model of credit financing; and (2) the regional economic potentiality for micro and small business entreprises in South Sumatera-Indonesia. Using 748 respondents from 14 regions in South Sumatera, this study employs a matrix analysis and ordinary least square. First, according to matrix analysis of statistic descriptive, the results reveal that there are three industries that potentially having higher productivity in supporting the regional economic in South Sumatera-Indonesia. Those three potential industries are Food, Beverages and Tobaccos Industry, Other Processing Industry, and Textile, Clothes and Leather Industry. OKU Timur Regency, MUBA Regency and OKU Selatan Regency are the regions having higher productivity and higher potential in the sector of Food, Beverages and Tobacos Industry. Palembang City, Banyuasin Regency and Muara Enim Regency are the regions having higher productivity and higher potential in the sector of Other Processing Industry. Ogan Ilir Regency, Pagaralam City and OKU Induk Regency are the three regions having higher productivity and higher potential in the sector of Textile, Clothes and Leather Industry. Hence, the local and regional government should be more responsive to stimulate all those regions in those three industries. Second, the result also reveals that raw material, local products which have characteristics of local area, the guarantee of raw material availability and economically profitable have a significant impact on micro and small business entreprises’ productivity. Furthermore, the result is inline with the notion that a potential product of one region is determined by the local contents of raw material as the more local contents of one product the higher potentialilty of that product.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Mr Abdul Basyith
Date Deposited: 19 Dec 2017 02:55
Last Modified: 19 Dec 2017 02:55
URI: http://eprints.binadarma.ac.id/id/eprint/3605

Actions (login required)

View Item View Item