Determinants of Online Sellers Intention in to Apply Micro Credit

Abstract

<jats:p>The contribution of MSMEs to Indonesia's Gross Domestic Product (GDP) reached 61.41%, but only about 8% of MSME players have used e-commerce. One of the government policies to encourage MSMEs going online is to facilitate access to have microcredit (KUR) which has tailored to the e-commerce business model. This study aimed to look at the relationship of demography and characteristics of online business with the intention of to apply microcredit since the location and type of business of MSMEs are mostly not fixed. The data were obtained by online survey to the respondents selected by convenience sampling. This study used descriptive analysis and cross tabulation analysis of 235 respondents who are registered as members of the Indonesian Online Sellers Association. The results of the study showed that only the types of online business and other sources of income were significantly related to the intention in to apply for microcredit. Credit lending through media e-marketplaces could identify proper financing for the type of business for MSMEs. Further research by utilizing e-marketplace merchant database will provide a better description of MSME models for the intention in to apply microcredit.</jats:p>

The Effect of Marketing Mix Perception on the Intention of Online Merchant Financing

“…Prospective borrowers who registered as online merchants have verified names, addresses, and product types. Financers can analyze transaction turnover at any time since the system recorded all the transactions (Karambut et al, 2019).…”

“…For the multi-sided platform (MSP) firms with Business-to-business (B2B) or Business-to-consumer (B2C) business models, their open innovation practice commonly starts with the inbound process. For instance, SME sellers provide inbound new products/services to the platform, third-party logistics provides the solution to innovate the fulfillment process (Santoso et al, 2020), and financial institutions offer online credit facilities (Karambut et al, 2019). Service quality was a crucial indicator for increasing browsers and sales amount (Wang & Kim, 2018).…”