Determinant of small medium business funding decision in Batu city

Dwi Anggarani, Muchlis H. Mas'ud, Zulkifli Zulkifli

Abstract


This study aims to examine the relationship between determinant variables affecting SME funding decision in Batu City. The approach used is survey research on perpetrators of SMEs excellent products as respondents to test the causality of variables affecting the funding decision. The analysis technique used is multiple regressions. The research found that: (1) although SMEs can achieve profit and increase assets, SMEs in Batu City prioritize internal funding sources. (2) Higher business risk due to increased company size and leverage operations. The SMEs tend to use internal funding rather than debt. SMEs growth does not necessarily use debt. Most the production activities of SMEs in Batu City have reached full capacity.

Keywords


profitability, business risk, company size, growth, tangibility.

Full Text:

PDF

References


Admin PUPUK. 2014. Kriteria dan Karakteristik Usaha Kecil Menengah (UKM). http://www.pupuk.or.id/index.php/berita/item/11-kriteria-dan-karakteristik-usaha-kecil-menengah-ukm (diunduh 30 Januari 2014).

Akhtar, Shumi and Oliver, Barry. 2009. Determinant Capital Structure for Japanese Multinational and Domestic Corporations, International Review of Finance, 9:1-2,2009: pp. 1-26

Buferna, Fakher, Kenbata Bangassa and Lynn Hodgkins. 2005. Determinants Capital Structure : Evidence From Libya, Research Paper Series, University of Liverpool.

Cathoth, Prakash K., and Michael D. Olsen. 2007. The Effect of Inviroment Risk,Corporate Strategy, and Capital Structure on Firm Performance :An Empirical Investigation of Restaurant Firm”, International Journal of Hospitality Management 26, p. 502-516.

Chen. 2004. The Influence of Capital Structure on Company Value Frim with Diffrent Growth Oportuniteis, Paper University of Lausanne

Baral, Keshar J. 2004. Determinant of Capital Structure: A Case Study of Listed Companies of Nepal, The Journal of Nepalese Business Studies, Vol. 1 No.1, p. 1-13.

Crnigoj, Matjaz and Mramor, Dusan. 2009. Determinants of Capital Structure in Emerging European Economies : Evidence from Slovenia Firms, Emerging Markets Finance & Trade I, Januari-February 2009, Vol. 45, No.1, p.72-89

Departemen Perdagangan dan Perndustrian RI 2008. Pedoman Pembinaan Industri Kecil, Menengah dan Koperasi, Penerbit Direktorat Jenderal Industri Kecil dan Dagang Kecil, Departemen Perindustrian dan Perdagangan, Jakarta.

DirekturJenderal Industri Kecil dan Menengah Kementerian Perindustrian, Rencana Strategis Direktorat Jenderal IkmTahun 2010 - 2014, Dalam Rangka Meningkatkan Nilai Tambah Ikm, Disampaikan pada acara Rapat Kerja Internal Kementerian Perindustrian Pada tanggal 4 Februari 2010 di Jakarta.

Gaud, Phillipe, Martin Hoesli, Andre Bender. 2006. Debt Equity Choice in Europe, International Review of Financial Analysis, Article in Press.

Hafsah, M.J. 2004. Upaya Pengembangan Usaha Kecil dan Menengah (UKM), Infokop, Nomor 25 Tahun XX, hal 40–44.

Hafsah, M.J. 2004. Upaya Pengembangan Usaha Kecil dan Menengah (UKM), Infokop, Nomor 25 Tahun XX, hal 40–44.

Hapsari, Pradnya P., Hakim, Abdul dan Soeaidy, Saleh. 2014. Pengaruh Pertumbuhan Usaha Kecil Menengah (UKM) terhadap Pertumbuhan Ekonomi Daerah (Studi di Pemerintah Kota Batu), Wacana, Fakultas Ilmu AdministrasiUniversitas Brawijaya Malang, NegaraVol. 17, No. 2, p : 88-96.

Huang, Ghuihai and Frank M. Song. 2006. The Determinants of Capital Structure :Evidence from China, China Economic Review, 17.

Karsidi, RavikdanHeruIrianto. 2005. Strategi Pemberdayaan UMKM Di Wilayah Surakarta. Diskusi Regional Kerjasama Bank Indonesia Solo dengan Badan Koordinasi Pembangunan Lintas Kabupaten/Kota Wilayah II Surakarta PropinsiJawa Tengah. HOTEL SAHID RAYA SOLO. Kamis, 30 Juni 2005.

Hamid danSusilo. 2011. Strategi Pengembangan Usaha Mikro Kecil Dan Menengah Di Provinsi Daerah Istimewa Yogyakarta. Jurnal Ekonomi Pembangunan Volume 12, Nomor 1, Juni 2011, hlm.45-55.

Hamid, EdySuandi. 2010. Pengembangan UMKM Untuk Meningkatkan Pertumbuhan Ekonomi Daerah. Simposium Nasional 2010: Menuju Purworejo Dinamis dan Kreatif. Fakultas Ekonomi. Universitas Islam Indonesia, Yogyakarta.

Pandey, I.M. 2001. Capital Structure anf the Frim Characteristics : Evidence From an Emerging Market, Working Paper, India Institute of Management Ahmedabad, India.

Sodik, Mas’ud, Muchlis H., Budiantono, Bambang dan Nurhayati, Indah D., 2007. Model Pengembangan Ekonomi Lokal.




DOI: https://doi.org/10.18860/mec-j.v0i0.5874

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Editorial Office:
Faculty of Economics,
State Islamic University of Maulana Malik Ibrahim Malang
Gajayana Street 50, Malang-East Java, Indonesia 65144
Phone (+62) 341 558881, Facsimile (+62) 341 558881
e-mail: mecjournal@uin-malang.ac.id

 

 

P-ISSN 2599-3402
E-ISSN 2598-9537

Lisensi Creative Commons

MEC-J is licensed under CC-BY-SA
© All rights reserved 2017.

 

MEC-J INDEXED IN:  

                                  

Member of:

 

View My Stats