Paper Title :Exploring Financial Capability of SMES and Improving Financial Management Performance Using Financial Application
Author :Tatik Suryani, Rr. Iramani, Lindiawati
Article Citation :Tatik Suryani ,Rr. Iramani ,Lindiawati ,
(2017 ) " Exploring Financial Capability of SMES and Improving Financial Management Performance Using Financial Application " ,
International Journal of Management and Applied Science (IJMAS) ,
pp. 79-83,
Volume-3,Issue-2
Abstract : Lack of Financial capability of small-medium enterprises SMEs) potentially lead to problems disturbing
performance and growth of SME in Indonesia. This lack also triggers the loss of their competitive advantage. This problem
arises from the less of financial literacy and capability for managing finance. Consequently, they get difficulty to access
financial institutions to get funding, and cannot develop their business well. The objective of this research is to identify
financial capability within SME’s and design application tools to facilitate their financial management. Using qualitative
methods, this research interviewed 60 entrepreneurs in Eat Java producing local prominent products. Questionnaires were
used to measure SME business performance and financial capability such as financing decision, investment decision and
profit management. Triangulation was used by confirming the interview data, quantitative data and FGD data. Statistic
descriptive was used to analyze the data resulting that 80% of SME has good business performance. Their current sales grew
more than 10%. This growth rate can be increased if they have eagerness to take a risk by investing more for increasing their
production to penetrate markets. In more detailed way, it was identified the lack of SME knowledge and management on
preparing financial record, loss-profit report, cash report, and assets. One of the research’s outputs is a financial software
compatible with PC, laptop, and mobile phone. This software is use full for SME owners to manage theirs financial business.
Key words- financial literacy, financial capability, financial system
Type : Research paper
Published : Volume-3,Issue-2
Copyright: © Institute of Research and Journals
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Published on 2017-05-04 |
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