INVESTIGATING THE GAP IN KUR ACCESS FOR MICRO AND SMALL ENTERPRISES

Abstract

This study looks at the problems that micro and small businesses (MSEs) face in Depok, Indonesia, when trying to get into the Kredit Usaha Rakyat (KUR) program. It also looks at how these problems resulted in reducing poverty and improving income distribution. The study uses an experimental design to analyze the determinant of financial access, such as how well MSEs understand KUR, financial report, the age of the business, and technological adoption. There were 147 MSEs in total, splitted into treatment and control groups. The treatment group got help through FGDs. The data collection was executed both before and after the intervention to see how it affected access to KUR. The results show that the treatment group had much better access to KUR, especially when it came to understanding KUR processes better and having much better financial reporting skills. The findings indicate that the integration of digital tools into marketing strategies significantly enhances individuals' ability to secure funding. Statistical analysis through regression reveals that awareness of government credit programs such as KUR and the capability to manage financial documentation play crucial roles in improving financial access. Conversely, how long a business has been operating appears to have only a minimal impact. Notably, there was little to no improvement in KUR access among participants who did not receive the intervention, highlighting the effectiveness of targeted support measures. Overall, the study emphasizes that well-planned initiatives such as focus group discussions can empower micro and small enterprises to obtain additional financing, which is vital for poverty alleviation and fostering inclusive economic progress. These outcomes reinforce the critical need for continuous training and advisory services tailored to the needs of small businesses.