The Effect of Membership Accessibility of Small Micro Business Cooperatives (Kumk) in Obtaining MSEs Capital Financing from Financial Institutions in Aceh Province (Published)
This study aims to analyze the accessibility of financing for members of cooperatives, micro and small businesses in Aceh Province. Based on the results of the interview, it was found that the accessibility of members of cooperatives owners of micro and small businesses to capital from financial institutions is constrained by several factors including the management of cooperatives that are not active or have multiple managements, making it difficult for the creditworthiness assessment process based on the 5C principles, namely character, capacity, capital, collateral, and conditions of economy. Meanwhile, owners of micro and small businesses are constrained by the available financial reports that explain business prospects related to the capacity aspect in credit assessment, while the other factor is the ability to fulfill guarantees in obtaining credit financing or collateral aspects. It is hoped that related parties can provide training in the preparation of financial reports to micro and small business actors as well as cooperative management. In addition, policies are needed to provide financing without collateral or with special collateral to micro, small and cooperative enterprises. Another factor that needs to be improved is the education of cooperatives for members so as to prevent cooperatives from being inactive.
Keywords: 5C, Accessibility, cooperatives and micro and small businesses