External Capital Analysis on Sustainability of MSMEs Led by Women
(1) Padjadjaran University
(2) Padjadjaran University
Abstract
Micro small and medium enterprises (MSMEs) led by women have many challenges to confront continue to exist. Various external capitals come with advantages and disadvantages. The investigation looks at the business sustainability of MSMEs led by women by comparing banks or non-banking institutions as the source of the main capital as the main independent variables as well as other variables such as employee, characteristics of female entrepreneur; age, education, marriage status, participation in arisan, household characteristics ; asset, size, young children and elderly member. The data from Indonesian Family Life Survey (IFLS) 2014 is used and probit estimation is applied. The result shows that women led MSMEs are more likely to sustained the business as much as 1.8 percentage points if they start the business from informal financial institutions/friends/family (non-banking) as a source of funding compared to women led MSMEs that start the funding from bank institutions. Estimations results also show that factors such as age, education, participation in arisan, household size, and employee also positive and significantly contribute to the business survival of women led MSMEs. However, other factors such as married status, household assets, and having children, are negatively contribute to the business survival of women led MSMEs.
Keywords
Full Text:
PDFReferences
Allen, F., Qian, M., & Xie, J. (2018). Understanding Informal Financing. Journal Of Financial Intermediation, 39, 19-33. doi: 10.1016/j.jfi.2018.06.004.
Ambepitiya, K. (2013). The Role Of Women Entrepreneurs In Establishing A Sustainable Development In Sri Lanka. Kelaniya Journal Of Human Resource Management, 8(2), 149. doi: 10.4038/kjhrm.v8i2.7.
Azmat, F. (2013). Opportunities Or Obstacles?: Understanding The Challenges Faced By Migrant Women Entrepreneurs. International Journal Of Gender And Entrepreneurship, 5(2), 198–215. https://doi.org/10.1108/17566261311328855
Statistics Center [Badan Pusat Statistik]. (2016). Gender Thematic Statistics: A Portrait Of Gender Inequality In The Economy [Statistik Gender Tematik: Potret Ketimpangan Gender Dalam Ekonomi]. The Ministry Of Women's Empowerment And Child Protection [Kementerian Pemberdayaan Perempuan Dan Pelindungan Anak], 1–130.
Statistics Center [Badan Pusat Statistika]. (2020). Indonesian Statistics 2020 [Statistik Indonesia 2020]. Statistical Yearbook of Indonesia, 192.
Baporikar, N., & Nambira, G. (2016). Exploring Factors Hindering SMEs Growth: Evidence From Namibia. Journal Of
Science And Technology Policy Management, 7(2), 190-211.
Bappenas & BPS. (2018). Indonesian Population Projection 2015-2045 [Proyeksi Penduduk Indonesia 2015-2045]. Jakarta: BPS RI.
Bista, B. (2016). Accessiblity Of Financial Service For Startup And – In context of Nepalese SMEs Accessiblity Of Financial Service For Startup And. 1–50.
Boyer, T., & Blazy, R. (2014). Born To Be Alive? The Survival Of Innovative And Non-Innovative French Micro-Start-Ups. Small Business Economics, 42(4), 669–683. doi: 10.1007/s11187-013-9522-8.
Cheng, X., Degryse, H. (2010). The Impact Of Bank And Non-Bank Financial Institutions On Local Economic Growth In China. Journal Of Financial Services Research, 37(2–3), 179–199. doi: 10.1007/s10693-009-0077-4.
Chimucheka, T. (2013). The Impact Of Entrepreneurship Education On The Establishment And Survival Of Small, Micro And Medium Enterprises (Smmes). Journal Of Economics, 4(2), pp. 157–168. doi: 10.1080/09765239.2013.11884975.
Clarke, G., Cull, R., & Kisunko, G. (2012). External Finance And Firm Survival In The Aftermath Of The Crisis: Evidence From Eastern Europe And Central Asia. Journal Of Comparative Economics, 40(3), 372–392. doi: 10.1016/j.jce.2012.01.003.
Bonita, F., Diyani, Y., Noor, I., & Jihad, I. (2019). Micro And Small Industry Profile 2019 [Profil Industri Mikro Dan Kecil 2019]. Center Statistics [Badan Pusat Statistik].
Fairlie, R. (2013). Immigrant Entrepreneurs And Small Business Owners, And Their Access To Financial Capital. Topics In Entrepreneurship: Select Research, 33–74.
Faisal, M., Jabeen, F., & Katsioloudes, M. (2017) Strategic Interventions To Improve Women Entrepreneurship In GCC Countries: A Relationship Modeling Approach. Journal Of Entrepreneurship In Emerging Economies, 9(2), 161–180. doi: 10.1108/JEEE-07-2016-0026.
Jabeen, F., Katsioloudes, M., & Das, S. (2015). Is Family The Key? Exploring The Motivation And Success Factors Of Female Emirati Entrepreneurs. International Journal Of Entrepreneurship And Small Business, 25(4), 375–394. doi: 10.1504/IJESB.2015.070214.
Kasseeah, H., & Tandrayen-Ragoobur, V. (2014). Women In The Informal Sector In Mauritius : A Survival Mode. Equality, Diversity And Inclusion: An International Journal, 33(8), 750-763 doi: 10.1108/EDI-04-2013-0022.
Kotha, R., & George, G. (2012). Friends, Family, Or Fools: Entrepreneur Experience And Its Implications For Equity Distribution And Resource Mobilization. Journal Of Business Venturing, 27(5), 525–543. doi: 10.1016/j.jbusvent.2012.02.001.
KPPPA. (2018). Ministry Of Women's Empowerment And Child Protection Performance Report 2018 [Laporan Kinerja Kementerian Pemberdayaan Perempuan Dan Perlindungan Anak Tahun 2018]. Government Agencies Performance Accountability Report [Laporan Akuntabilitas Kinerja Instansi Pemerintah].
Long, J., & Freese, J. (2014). Regression Models For Categorical Dependent Variables Using STATA. Sociology The Journal Of The British Sociological Association. doi: 10.1186/2051-3933-2-4.
Olawale, F., & Garwe, D. (2010). Obstacles To The Growth Of New Smes In South Africa: A Principal Component Analysis Approach. African Journal Of Business Management, 4(5), 729–738.
Financial Services Authority [Otoritas Jasa Keuangan]. (2016). IKNB. https://www.ojk.go.id/sustainable-finance/id/tentang/Pages/IKNB.aspx.
Ratten, V., & Welpe, I. (2011). An International Journal Special Issue: Community-Based, Social And Societal Entrepreneurship. Entrepreneurship & Regional Development, 23(5-6), 283-286. doi: 10.1080/08985626.2011.580159.
Rey-Martí, A., Tur, A., & Mas-Tur, A. (2015). Linking Female Entrepreneurs Motivation To Business Survival. Journal Of Business Research, 68(4), 810–814. doi: 10.1016/j.jbusres.2014.11.033.
SDGs (2020). Goal 05: Achieve Gender Equality And Empower All Women And Girls [Tujuan 05: Mencapai Kesetaraan Gender Dan Memberdayakan Semua Perempuan Dan Anak Perempuan]. https://www.sdg2030indonesia.org/page/13-tujuan-lima.
Sieger, P., & Minola, T. (2017). The Family’s Financial Support As A “Poisoned Gift”: A Family Embeddedness Perspective On Entrepreneurial Intentions. Journal Of Small Business Management, 55(00), 179–204. doi: 10.1111/jsbm.12273.
Sohn, S., & Ju, Y. (2011). How Effective Is Government Support For Korean Women Entrepreneurs In Small And Medium Enterprises. Journal Of Small Business Management, 49(4), 599–616.
Strauss, J., Witoelar, F., & Sikoki, B. (2016). The Fifth Wave Of The Indonesia Family Life Survey (IFLS5): Overview And Field Repor. Working Paper, 1. WR-1143/1-NIA/NICHD.
Tundui, C., & Tundui, H. (2012). Survival, Growth Strategies And Performance Of Women Owned Micro And Small Businesses in Tanzania. International Journal Of Business And Management, 7(8), 143–155. doi: 10.5539/ijbm.v7n8p143.
Indonesian SMEs [UKM Indonesia]. (2020). Forms Of Business Entities, University Of Indonesia [Bentuk-Bentuk Badan Usaha, Universitas Indonesia]. https://www.ukmindonesia.id/baca-izin/1194.
Wehinger, G., & Kaousar, N. (2014). Non-bank debt financing for SMEs. OECD Journal: Financial Market Trends, 2014(1), pp. 139–162. doi: 10.1787/fmt-2014-5jxx05svvw34.
Wilson, N., Wright, M., & Scholes, L. (2013) Family Business Survival And The Role Of Boards. Entrepreneurship Theory And Practice, 37(6), 1369–1389. doi: 10.1111/etap.12071.
Refbacks
- There are currently no refbacks.
![Creative Commons License](https://i.creativecommons.org/l/by/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution 4.0 International License.