The Potential of Bank Venture Debt Financing for SMEs/Startups in Indonesia

DOI

10.2991/aebmr.k.220701.022How to use a DOI?

Keywords

Venture Debt; Financing Tool; SMEs/Startups; Performance Impact; Bank Risk Aversion; Indonesia

Abstract

Venture Debt brings a new financing direction for SME/Startup. This paper aims to analyze the potential of Bank Venture Debt in Indonesia and the expected impact on the performance of SMEs/startups, exploring the risk and the risk countermeasure for banks. Through qualitative research method with literature review and theory, and venture debt modal to conduct detailed analysis and with the Indonesian SMEs/startup and Bank related personnel interviews to support the result of research of Bank Venture Debt. The results show that the venture debt is feasible to implement in Indonesia. Due to the rapid development of the market, changes in demand and supply have led to the positive impact being more significant than the negative impact for SMEs/startups, but in terms of market compliance and the bank’s operating system is still blank and needs more strategy and policy support from the government. The end of research based on the Indonesian environment puts forward the potential solutions to venture debt.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Shi Yunzi
AU  - Dony Abdul Chalid
PY  - 2022
DA  - 2022/07/12
TI  - The Potential of Bank Venture Debt Financing for SMEs/Startups in Indonesia
BT  - Proceedings of the 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021)
PB  - Atlantis Press
SP  - 105
EP  - 110
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220701.022
DO  - 10.2991/aebmr.k.220701.022
ID  - Yunzi2022
ER  -