Driving Growth in Village Industries: Exploring Effective Financing Facilities for Micro and Small Enterprises

Gunawan, Gunawan (2023) Driving Growth in Village Industries: Exploring Effective Financing Facilities for Micro and Small Enterprises. In: Proceedings of the 4th International Conference on Informatics, Technology and Engineering 2023 (InCITE 2023), 14-15 September 2023, Yogyakarta.

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Abstract

The challenge of financing for micro and small manufacturing enterprises is a global issue but needs local solutions, as the industry characteristics and financ-ing facilities are different among countries and even within countries. In the post-pandemic period, recovering micro and small industries in rural areas is very im-portant. This study departs from a contextual question: which type of financing facilities effectively drive the growth of micro and small industries in villages? The study objectives are (1) to group and map regions based on the intensity of micro and small industry sectors in villages and (2) to identify the types of fund-ing facilities linked to the intensity of micro and small industry in villages. This exploratory, secondary, and quantitative research acquires official data from BPS-Statistics Indonesia. Data analytics using the Knime Analytics Platform reveals that the higher intensity of micro and small enterprises is positively associated with the intensity of small community business financing, microcredit, the role of village and small industry cooperatives, and the function of rural banks. They all require government support in financing, such as grants, soft loans, and credit guarantees. The study suggests the need for continuous government support, particularly for many micro-enterprises.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Data Analytics, Data Mining, Financing, Indonesia, SMEs
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Divisions:	Faculty of Engineering > Department of Industrial Engineering
Depositing User:	Gunawan 6182
Date Deposited:	12 Dec 2023 07:15
Last Modified:	12 Dec 2023 07:17
URI:	http://repository.ubaya.ac.id/id/eprint/45123

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