FAMILY FUNDING DAN FORMAL FUNDING PADA USAHA MIKRO, KECIL, DAN MENENGAH (UMKM) DI KABUPATEN JEPARA

Abstract

Sources of financing became a problem often encountered. Sources of financing can come from formal institutions (formal funding) or from family/close relatives (family funding). This study aims to examine the sources of financing used by SMEs in Jepara regency between family and formal funding, as well as variables that influence and the dominant variables between the size of the business, business growth, information, experience, confidence, credit procedures, credit interest, and business risk as determinants of financing decisions. The 90 respondents are owner of the existing SMEs in Jepara regency selected by incidental random sampling method. Data collection methods used were questionnaires and interviews. Data analysis using binary logistic regression models. The results shows that SMEs in Jepara regency prefer to use formal funding than family funding with percentage 67% formal funding and 37% family funding. From 8 variables studied, there are 3 variables that influence the decision to use the formal funding, experience, credit interest, and business risk with a variable credit interest as the most dominant variable. Later it was found that there is only variable credit procedures that influence family funding