The Advantages of the Micro Equity Model for Msme Business Resilience in Yogyakarta During Pandemic

Abstract

Many MSME business enterprises were severely hit during the Covid-19 pandemic. This study examined a micro equity financing model as an innovative answer to conventional loans in assisting MSME to survive during and after the pandemic. The micro equity financing model employed a profit-sharing system with flexible repayment and without collateral. A qualitative, descriptive data processing approach was employed. Interviews were conducted online with respondents of MSME that use the micro equity model in the Trust Network Finance (TNF) project in Yogyakarta. It was found more than 75% of MSMEs in Yogyakarta had experienced contractions on the marketing of their business. And more than 50% of MSME players in Yogyakarta had experienced problems in repaying loans due to the Covid-19 pandemic crisis. We suggested from the results that the micro equity model had shown to provide many benefits to MSME, especially in marketing and financial aspects, such as more accessible loan applications, flexible repayment schedules, and business assistance.

Prospects of Digitalization of MSMEs Business Expansion in Sepakat Village

“…This causes the digital village development program in Sepakat Village to be quite stagnant. MSME actors are used to selling their goods to traditional markets (Hartono et al, 2021;Nasir, M. S., AK et al, 2022). If this is done, it is not too dangerous for development in the short term.…”

“…They still rely on traditional markets with regular customers who usually make purchases. If this continues, the development of MSMEs without being supported by online stores in the long term will surely reduce sales (Hartono et al, 2021;Nasir, M. S., AK et al, 2022). Based on this, it is necessary to design a strategy for building a digital village.…”

Analisis Efisiensi Pasar Modal di Indonesia

“…Informasi asimetri adalah kondisi di mana ada ketidakseimbangan informasi antara manajemen dan pemegang saham (Nugraha et al, 2023). Menurut asosietomi (Hartono, 2008) informasi pribadi yang hanya dimiliki oleh investor yang memiliki informasi (investor investor). Asimetri informasi menunjukkan bahwa ada sekelompok investor yang memiliki lebih banyak informasi tentang sebuah acara yang memungkinkan investor mendapatkan pengembalian abnormal.…”

Looking Beyond the Pandemic: Building Back Better for MSME Finance

“…That end has tended to be perpetual growth of businesses and economies: helping micro firms become small, small firms become medium-sized, and so on (Cassidy, 2020; Gancarczyk and Zabala-Iturriagagoitia, 2015). 4 The implicit logic here tends to revolve around the desirability of firms to become larger over time, and thereby enjoy economies of scale and other attributes that can make them more competitive (Hartono, et al 2021; World Bank, 2020). 5 Thus, firms in most economies have been encouraged, and even sometimes incentivized, to scale up.…”

“…While some of the more developed economies were able to roll out emergency pandemic relief interventions intended to help MSMEs survive the economic storm, less affluent countries were not able to do so, or could only do so at sub-optimal levels (Hartono, et al 2021). Regardless, these sorts of emergency measures that governments around the globe have instituted to mitigate some of the worst impacts of the economic crisis are not sustainable in the medium or long term.…”