Overview

Original Research

OPTIMIZING THE ROLE OF FINANCING UNITS IN FINANCIAL INSTITUTIONS AND BANKING FOR GOING CONCERN MICRO, HIGH SCHOOLS AND MEDIUM ENTERPRISES (MSMES)

ROSA NIKMATUL FAJRI 1, NOR AZAH BINTI ABDUL AZIZ 2, and SITI NORBAYA BINTI YAHAYA 3.

Vol 17, No 11 ( 2022 )   |  DOI: 10.5281/zenodo.7404854   |   Author Affiliation: Accounting Faculty, Alma Ata University 1; Faculty of technology management and techno-entrepreneur, University Teknikal Malaysia Malaka 2,3.   |   Licensing: CC 4.0   |   Pg no: 2470-2489   |   To cite: ROSA NIKMATUL FAJRI, et al., (2022). OPTIMIZING THE ROLE OF FINANCING UNITS IN FINANCIAL INSTITUTIONS AND BANKING FOR GOING CONCERN MICRO, HIGH SCHOOLS AND MEDIUM ENTERPRISES (MSMES). 17(11), 2470–2489. https://doi.org/10.5281/zenodo.7404854   |   Published on: 30-11-2022

Abstract

MSMEs as one of the pillars of the country's economy are still not productive. This happens because of the lack of utilization of financing as business capital which has actually been widely provided. Quantitative research was conducted to determine the extent of the relationship between the role of financial institutions and banks on the going concern of MSMEs. The samples taken were 33 respondents from MSMEs in Yogyakarta. Interview techniques, observation, hypothesis testing and analysis using correlation regression, and Kendal tau test followed by statistical descriptions were carried out which resulted in the conclusion of the study that financing units by financial institutions and banks have an influence on the going concern level of MSMEs but is still not optimal only 85%.

Keywords

MSMEs, going concern, financing units, Capital