Analysis Of Credit Effects Of Micro Entrepreneurs And Regional Development Groups To Increasing Members' Income In Perbaungan District, Deli Serdang Regency (Case Study Of PT. BPR Perbaungan Hombar Makmur)

Feb 28, 2025 by ADMIN 206 views

**Encouraging Prosperity: Analysis of the Effect of Group Credit and Regional Development on Micro Business Income in Perbaungan District**

Introduction

In the pursuit of economic growth and development, micro entrepreneurs play a vital role in driving regional economies. However, their success is often hindered by limited access to capital and resources. This study aims to investigate the effect of credit granting to micro entrepreneurs groups on increasing member income, as well as the role of regional development in supporting microeconomic growth in Perbaungan District, Deli Serdang Regency. The main focus of this research is to understand how the credit provided by PT. BPR Perbaungan Hombar Makmur and regional development efforts have an impact on increasing the income of members of the Micro Entrepreneurs Group.

Background

Micro entrepreneurs in Perbaungan District face numerous challenges, including limited access to credit, inadequate infrastructure, and lack of market access. These challenges hinder their ability to grow and expand their businesses, ultimately affecting their income and livelihoods. In response to these challenges, PT. BPR Perbaungan Hombar Makmur, a local bank, has implemented a credit program aimed at supporting micro entrepreneurs in the region. The program provides access to credit, training, and mentorship to help entrepreneurs develop their businesses and increase their income.

Methodology

This study uses a case study approach to investigate the effect of credit granting to micro entrepreneurs groups on increasing member income, as well as the role of regional development in supporting microeconomic growth in Perbaungan District. The study collected data from 100 micro entrepreneurs who received credit from PT. BPR Perbaungan Hombar Makmur and 100 micro entrepreneurs who did not receive credit. The data was analyzed using multiple regression models to examine the relationship between credit, regional development, and increase in income of members of the micro entrepreneur group.

Results

The results of the study showed that there was a significant correlation between credit, regional development, and increase in income of members of the micro entrepreneur group. The study found that:

Credit Effect: Every credit increase of 10% significantly impacts an increase in income of 1.16%. This shows that access to capital through credit plays an important role in encouraging the growth of micro business.
Effect of Regional Development: Moving from a non-strategic business location to a strategic location has the potential to increase income by 36.7%. The development of infrastructure and facilities in the region also has proven to have a positive effect, with a reduction in raw material and transportation costs by 10%, each contributing to an increase in revenue by 7.5% and 5.1%.
Regression Model: The regression model used in this study has a R2 value of 91%, which means 91% of income variations can be explained by the model. The F value of 85.67 also shows that the model is significant at a 99% confidence level.

Economic Analysis

This study confirms that the granting of credit to a group of micro entrepreneurs is a profitable strategy. This is because credit provides access to the capital needed to develop the business and increase productivity. Increasing the income of members of the Micro Entrepreneur Group members can also be achieved through regional development efforts, such as:

Utilization of local raw materials: The use of local raw materials can reduce production costs and increase profitability.
Transportation infrastructure development: Access to efficient and quality transportation can reduce logistics costs and increase business competitiveness.
Optimizing business location: Moving business to a strategic location can increase market visibility and access, so that it has the potential to increase sales turnover.

Conclusion

This study provides empirical evidence of the positive effects of credit and regional development on increasing the income of members of the micro business group in Perbaungan District. Therefore, synergistic efforts need to be made between financial institutions and the government in supporting access to credit and sustainable regional development. This will help trigger microeconomic growth, improve the welfare of the community, and strengthen the regional economy.

Recommendations

Based on the findings of this study, the following recommendations are made:

Financial institutions: Financial institutions should continue to provide credit to micro entrepreneurs, with a focus on supporting regional development efforts.
Government: The government should provide support to financial institutions in providing credit to micro entrepreneurs, and also invest in regional development initiatives that promote economic growth and development.
Micro entrepreneurs: Micro entrepreneurs should take advantage of credit and regional development opportunities to grow and expand their businesses.

Limitations

This study has several limitations, including:

Sample size: The sample size of this study is relatively small, which may limit the generalizability of the findings.
Data collection: The data used in this study was collected from a single source, which may introduce bias into the results.
Model specification: The regression model used in this study may not fully capture the complex relationships between credit, regional development, and income.

Future Research

Future research should aim to:

Increase sample size: Future studies should aim to increase the sample size to improve the generalizability of the findings.
Use multiple data sources: Future studies should use multiple data sources to reduce bias and improve the accuracy of the results.
Examine other factors: Future studies should examine other factors that may influence the relationship between credit, regional development, and income, such as market access and competition.

Introduction

In our previous article, we discussed the impact of credit and regional development on micro entrepreneurs in Perbaungan District, Deli Serdang Regency. In this article, we will answer some of the most frequently asked questions related to credit and regional development for micro entrepreneurs.

Q: What is the role of credit in micro entrepreneurship?

A: Credit plays a vital role in micro entrepreneurship as it provides access to capital, which is essential for business growth and development. With credit, micro entrepreneurs can invest in their businesses, increase productivity, and ultimately increase their income.

Q: How does regional development impact micro entrepreneurship?

A: Regional development has a significant impact on micro entrepreneurship as it provides access to infrastructure, markets, and resources. By investing in regional development, governments and financial institutions can create an enabling environment for micro entrepreneurs to grow and expand their businesses.

Q: What are the benefits of credit for micro entrepreneurs?

A: The benefits of credit for micro entrepreneurs include:

Increased access to capital: Credit provides micro entrepreneurs with access to capital, which is essential for business growth and development.
Improved productivity: With credit, micro entrepreneurs can invest in their businesses, increase productivity, and ultimately increase their income.
Reduced poverty: By providing access to credit, micro entrepreneurs can improve their livelihoods and reduce poverty.

Q: What are the benefits of regional development for micro entrepreneurs?

A: The benefits of regional development for micro entrepreneurs include:

Improved access to markets: Regional development provides micro entrepreneurs with access to markets, which is essential for business growth and development.
Increased access to resources: Regional development provides micro entrepreneurs with access to resources, such as infrastructure, technology, and skills.
Improved business competitiveness: By investing in regional development, governments and financial institutions can create an enabling environment for micro entrepreneurs to grow and expand their businesses.

Q: How can governments and financial institutions support micro entrepreneurs?

A: Governments and financial institutions can support micro entrepreneurs by:

Providing access to credit: Governments and financial institutions can provide access to credit, which is essential for business growth and development.
Investing in regional development: Governments and financial institutions can invest in regional development, which provides micro entrepreneurs with access to infrastructure, markets, and resources.
Providing training and mentorship: Governments and financial institutions can provide training and mentorship to micro entrepreneurs, which can help them develop their skills and improve their businesses.

Q: What are the challenges faced by micro entrepreneurs in accessing credit and regional development?

A: The challenges faced by micro entrepreneurs in accessing credit and regional development include:

Limited access to credit: Micro entrepreneurs often face limited access to credit, which can hinder their ability to grow and expand their businesses.
High interest rates: Micro entrepreneurs often face high interest rates, which can increase their costs and reduce their profitability.
Limited access to markets: Micro entrepreneurs often face limited access to markets, which can reduce their sales and revenue.

Q: How can micro entrepreneurs overcome these challenges?

A: Micro entrepreneurs can overcome these challenges by:

Developing a business plan: Micro entrepreneurs can develop a business plan, which can help them identify their strengths and weaknesses and develop a strategy for growth and development.
Seeking training and mentorship: Micro entrepreneurs can seek training and mentorship, which can help them develop their skills and improve their businesses.
Building relationships with financial institutions: Micro entrepreneurs can build relationships with financial institutions, which can provide them with access to credit and other financial services.

Conclusion

In conclusion, credit and regional development play a vital role in micro entrepreneurship. By providing access to capital, infrastructure, markets, and resources, governments and financial institutions can create an enabling environment for micro entrepreneurs to grow and expand their businesses. However, micro entrepreneurs often face challenges in accessing credit and regional development, which can hinder their ability to grow and develop their businesses. By developing a business plan, seeking training and mentorship, and building relationships with financial institutions, micro entrepreneurs can overcome these challenges and achieve their goals.