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Abstract
One of the fundamental problems faced by MSMEs is limited capital. Although MSMEs may have received financing, many still encounter obstacles in elevating their business category. Among these factors are financial literacy and financial inclusion. Therefore, in this study, the data were collected through questionnaires and interviews with 113 MSMEs that have received KUR financing from BSI in the Bogor Area, using purposive sampling. The analytical methods used in this study include both qualitative and quantitative descriptive analysis. This includes classical assumption tests, regression model estimation, and hypothesis testing (t-test). Strategy development uses the Internal Factor Evaluation (IFE) and External Factor Evaluation (EFE) matrices, SWOT analysis and QSPM. The QSPM analysis identifies three top-priority strategies that most significantly support MSMEs in upgrading their business class after receiving KUR financing from BSI in the Bogor Area: (1) enhancing financial inclusion by providing easier access to banking services, both savings and financing. (2) improving the reputation and role of KUR in assisting unbankable MSMEs to become bankable and move up in business class. (3) increasing financial literacy among customers to encourage the use of BSI bank accounts for transactions, including digital transactions.
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References
- Abedifar, P., Hasan, I., & Tarazi, A. (2016). Finance–growth nexus and dual-banking systems: Relative importance of Islamic banks. Journal of Economic Behavior & Organization, 132, 198–215. https://doi.org/10.1016/j.jebo.2016.03.005
- Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V. (2017). SME finance. World Bank Research Observer, 32(1), 1–23. https://doi.org/10.1093/wbro/lkw006
- Bank Indonesia. (2023). West Java economic report: Synergy to strengthen food security and optimize new sources of economic growth. Bank Indonesia. https://doi.org/10.13140/RG.2.2.16439.34722
- Beck, T., & Demirgüç-Kunt, A. (2019). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 101, 1–13. https://doi.org/10.1016/j.jbankfin.2019.01.006
- Bhatti, M. A., Farhan, M., Ahmad, M. J., & Sharif, M. N. (2019). The impact of social CRM capabilities and customer engagement on firm performance: The mediating role of social media usage. Pakistan Journal of Humanities and Social Sciences, 7(3), 313–324. https://doi.org/10.52131/pjhss.2019.0703.0086
- Deni, D., Hubeis, M., & Aminah, M. (2024). The influence of internal audit and good corporate governance on KUR financing distribution through risk management implementation. Journal of Small and Medium Industry Development Management, 19(2), 71–79. https://doi.org/10.29244/jsmidm.19.2.71-79
- Fajar, M., Syarief, R., & Yusri, D. (2024). Strategy for improving MSME business performance: Evidence from KUR customers of Islamic banking. Journal of Small and Medium Industry Development Management, 20(1), 25–33. https://doi.org/10.29244/jsmidm.20.1.25-33
- Ghozali, I. (2018). Multivariate analysis application with IBM SPSS 25. Diponegoro University Press.
- Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? World Development, 111, 84–96. https://doi.org/10.1016/j.worlddev.2018.06.020
- Lusardi, A., & Mitchell, O. S. (2017). How ordinary consumers make complex economic decisions. Journal of Economic Perspectives, 31(3), 3–22. https://doi.org/10.1257/jep.31.3.3
- McKenzie, D., & Woodruff, C. (2017). Business practices in small firms in developing countries. Management Science, 63(9), 2967–2981. https://doi.org/10.1287/mnsc.2016.2512
- Ministry of Cooperatives and SMEs. (2022). The role of the financial services industry in MSME digital transformation. Government of Indonesia.
- Morgan, P. J., & Trinh, L. Q. (2019). Determinants and impacts of financial literacy in developing economies. Journal of Risk and Financial Management, 12(1), Article 19. https://doi.org/10.3390/jrfm12010019
- OECD. (2017). Enhancing the contributions of SMEs in a global and digitalised economy. OECD Publishing. https://doi.org/10.1787/9789264279341-en
- Otoritas Jasa Keuangan. (2022). OJK’s role in supporting MSME inclusion and digitalization. OJK Indonesia.
- Otoritas Jasa Keuangan. (2025). Expansion and ease of access to MSME financing. OJK Indonesia.
- Prabowo, A. P. A., Hubeis, M., & Sudradjat. (2024). Strategy for increasing KUR portfolio post-COVID-19 pandemic. Journal of Small and Medium Industry Development Management, 19(2), 101–110. https://doi.org/10.29244/jsmidm.19.2.101-110
- Rangkuti, F. (2018). SWOT analysis: Techniques for business case analysis. PT Gramedia Pustaka Utama.
- Septiani, R. N., & Wuryani, E. (2020). Financial literacy, financial inclusion, and MSME performance. E-Journal of Management, 9(8), 3214–3236. https://doi.org/10.24843/EJMUNUD.2020.v09.i08.p16
- Sulasih. (2019). Implementation of IFE, EFE, SWOT, and QSPM matrices to determine competitive strategy. E-BIS Journal, 3(1), 27–40. https://doi.org/10.37339/e-bis.v3i1.182
- World Bank. (2020). Indonesia economic prospects: The long road to recovery. World Bank Group. https://doi.org/10.1596/978-1-4648-1589-8
- Yani, A., Hubeis, M., & Suharjo, B. (2023). Microfinancing portfolio development strategy at Islamic banking. Journal of Small and Medium Industry Development Management, 18(2), 143–151. https://doi.org/10.29244/jsmidm.18.2.143-151
References
Abedifar, P., Hasan, I., & Tarazi, A. (2016). Finance–growth nexus and dual-banking systems: Relative importance of Islamic banks. Journal of Economic Behavior & Organization, 132, 198–215. https://doi.org/10.1016/j.jebo.2016.03.005
Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V. (2017). SME finance. World Bank Research Observer, 32(1), 1–23. https://doi.org/10.1093/wbro/lkw006
Bank Indonesia. (2023). West Java economic report: Synergy to strengthen food security and optimize new sources of economic growth. Bank Indonesia. https://doi.org/10.13140/RG.2.2.16439.34722
Beck, T., & Demirgüç-Kunt, A. (2019). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 101, 1–13. https://doi.org/10.1016/j.jbankfin.2019.01.006
Bhatti, M. A., Farhan, M., Ahmad, M. J., & Sharif, M. N. (2019). The impact of social CRM capabilities and customer engagement on firm performance: The mediating role of social media usage. Pakistan Journal of Humanities and Social Sciences, 7(3), 313–324. https://doi.org/10.52131/pjhss.2019.0703.0086
Deni, D., Hubeis, M., & Aminah, M. (2024). The influence of internal audit and good corporate governance on KUR financing distribution through risk management implementation. Journal of Small and Medium Industry Development Management, 19(2), 71–79. https://doi.org/10.29244/jsmidm.19.2.71-79
Fajar, M., Syarief, R., & Yusri, D. (2024). Strategy for improving MSME business performance: Evidence from KUR customers of Islamic banking. Journal of Small and Medium Industry Development Management, 20(1), 25–33. https://doi.org/10.29244/jsmidm.20.1.25-33
Ghozali, I. (2018). Multivariate analysis application with IBM SPSS 25. Diponegoro University Press.
Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? World Development, 111, 84–96. https://doi.org/10.1016/j.worlddev.2018.06.020
Lusardi, A., & Mitchell, O. S. (2017). How ordinary consumers make complex economic decisions. Journal of Economic Perspectives, 31(3), 3–22. https://doi.org/10.1257/jep.31.3.3
McKenzie, D., & Woodruff, C. (2017). Business practices in small firms in developing countries. Management Science, 63(9), 2967–2981. https://doi.org/10.1287/mnsc.2016.2512
Ministry of Cooperatives and SMEs. (2022). The role of the financial services industry in MSME digital transformation. Government of Indonesia.
Morgan, P. J., & Trinh, L. Q. (2019). Determinants and impacts of financial literacy in developing economies. Journal of Risk and Financial Management, 12(1), Article 19. https://doi.org/10.3390/jrfm12010019
OECD. (2017). Enhancing the contributions of SMEs in a global and digitalised economy. OECD Publishing. https://doi.org/10.1787/9789264279341-en
Otoritas Jasa Keuangan. (2022). OJK’s role in supporting MSME inclusion and digitalization. OJK Indonesia.
Otoritas Jasa Keuangan. (2025). Expansion and ease of access to MSME financing. OJK Indonesia.
Prabowo, A. P. A., Hubeis, M., & Sudradjat. (2024). Strategy for increasing KUR portfolio post-COVID-19 pandemic. Journal of Small and Medium Industry Development Management, 19(2), 101–110. https://doi.org/10.29244/jsmidm.19.2.101-110
Rangkuti, F. (2018). SWOT analysis: Techniques for business case analysis. PT Gramedia Pustaka Utama.
Septiani, R. N., & Wuryani, E. (2020). Financial literacy, financial inclusion, and MSME performance. E-Journal of Management, 9(8), 3214–3236. https://doi.org/10.24843/EJMUNUD.2020.v09.i08.p16
Sulasih. (2019). Implementation of IFE, EFE, SWOT, and QSPM matrices to determine competitive strategy. E-BIS Journal, 3(1), 27–40. https://doi.org/10.37339/e-bis.v3i1.182
World Bank. (2020). Indonesia economic prospects: The long road to recovery. World Bank Group. https://doi.org/10.1596/978-1-4648-1589-8
Yani, A., Hubeis, M., & Suharjo, B. (2023). Microfinancing portfolio development strategy at Islamic banking. Journal of Small and Medium Industry Development Management, 18(2), 143–151. https://doi.org/10.29244/jsmidm.18.2.143-151