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

DOI

10.2991/978-94-6463-288-0_22How to use a DOI?

Keywords

Data Analytics; Data Mining; Financing; Indonesia; SMEs

Abstract

The challenge of financing for micro and small manufacturing enterprises is a global issue but needs local solutions, as the industry characteristics and financing facilities are different among countries and even within countries. In the post-pandemic period, recovering micro and small industries in rural areas is very important. 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 funding 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.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Gunawan
PY  - 2023
DA  - 2023/11/19
TI  - Driving Growth in Village Industries: Exploring Effective Financing Facilities for Micro and Small Enterprises
BT  - Proceedings of the 4th International Conference on Informatics, Technology and Engineering 2023 (InCITE 2023)
PB  - Atlantis Press
SP  - 247
EP  - 257
SN  - 2589-4943
UR  - https://doi.org/10.2991/978-94-6463-288-0_22
DO  - 10.2991/978-94-6463-288-0_22
ID  - 2023
ER  -