What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia

Small and medium enterprises (SMEs) have historically been considered as the main player in domestic economic activities, as they provide a large number of total business establishment, employment and hence generating primary or secondary source of income for many households including in Indonesia....

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Main Authors:	Mohd Thas Thaker, Mohamed Asmy, Mohd Thas Thaker, Hassanudin
Format:	Conference or Workshop Item
Language:	English English
Published:	2015
Subjects:	HF5001 Business. Business Administration HG Finance
Online Access:	http://irep.iium.edu.my/44228/ http://irep.iium.edu.my/44228/2/Scanned_Documents.pdf http://irep.iium.edu.my/44228/3/Final_Paper_BEMP_2015-Mohamed_Asmy_%26_Hassanudin.pdf

id	iium-44228
recordtype	eprints
spelling	iium-442282017-06-13T06:24:07Z http://irep.iium.edu.my/44228/ What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hassanudin HF5001 Business. Business Administration HG Finance Small and medium enterprises (SMEs) have historically been considered as the main player in domestic economic activities, as they provide a large number of total business establishment, employment and hence generating primary or secondary source of income for many households including in Indonesia. However, with the financial crisis in 2008 started spreading around the world including in Indonesia, the access to early stage financing among SMEs has gotten significantly more difficult. Traditional banking mechanisms are unable to provide SMEs with the capital required to turn their ideas into reality. SMEs are considered as risky segment and various strict loan conditions have been imposed on them such as collateral requirement, stringent documentation requirement, high transaction costs, and good business and financial track record. Unfortunately, most of them cannot fulfill these conditions. As a result, SMEs had to look for other forms of alternative financing to fund their business. It was the purpose of this study to dive into a new paradigm of financing, in particular crowdfunding. Crowdfunding has been used as a way of financing and drawn the attention of various parties due to its growth potential and promptness in capital raising for new businesses including SMEs. Hence, the present study has used content analysis to critically look at the potential of crowdfunding in changing the SMEs’ financial landscape in Indonesia by highlighting its importance and possible application. Furthermore, market rejection due to the lack of the level of awareness and understanding of the public on crowdfunding are identified as one of the potential challenges that might arise in implementing crowdfunding. The research findings could also be used as part of the blueprints for the market players particularly SMEs and regulators to draft the necessary rules and regulations with regard to crowdfunding in Indonesia. 2015 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/44228/2/Scanned_Documents.pdf application/pdf en http://irep.iium.edu.my/44228/3/Final_Paper_BEMP_2015-Mohamed_Asmy_%26_Hassanudin.pdf Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hassanudin (2015) What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia. In: 9th International Conference Journal of Monetary Economics and Banking (Buletin Ekonomi Moneter dan Perbankan BEMP-2015, 6 August 2015, Hotel Millennium, Jakarta Indonesia .
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HF5001 Business. Business Administration HG Finance
spellingShingle	HF5001 Business. Business Administration HG Finance Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hassanudin What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia
description	Small and medium enterprises (SMEs) have historically been considered as the main player in domestic economic activities, as they provide a large number of total business establishment, employment and hence generating primary or secondary source of income for many households including in Indonesia. However, with the financial crisis in 2008 started spreading around the world including in Indonesia, the access to early stage financing among SMEs has gotten significantly more difficult. Traditional banking mechanisms are unable to provide SMEs with the capital required to turn their ideas into reality. SMEs are considered as risky segment and various strict loan conditions have been imposed on them such as collateral requirement, stringent documentation requirement, high transaction costs, and good business and financial track record. Unfortunately, most of them cannot fulfill these conditions. As a result, SMEs had to look for other forms of alternative financing to fund their business. It was the purpose of this study to dive into a new paradigm of financing, in particular crowdfunding. Crowdfunding has been used as a way of financing and drawn the attention of various parties due to its growth potential and promptness in capital raising for new businesses including SMEs. Hence, the present study has used content analysis to critically look at the potential of crowdfunding in changing the SMEs’ financial landscape in Indonesia by highlighting its importance and possible application. Furthermore, market rejection due to the lack of the level of awareness and understanding of the public on crowdfunding are identified as one of the potential challenges that might arise in implementing crowdfunding. The research findings could also be used as part of the blueprints for the market players particularly SMEs and regulators to draft the necessary rules and regulations with regard to crowdfunding in Indonesia.
format	Conference or Workshop Item
author	Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hassanudin
author_facet	Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hassanudin
author_sort	Mohd Thas Thaker, Mohamed Asmy
title	What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia
title_short	What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia
title_full	What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia
title_fullStr	What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia
title_full_unstemmed	What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia
title_sort	what is the solution to overcome the financial challenges of smes in indonesia? exploiting the potential of crowfunding in changing smes' financial landscape in indonesia
publishDate	2015
url	http://irep.iium.edu.my/44228/ http://irep.iium.edu.my/44228/2/Scanned_Documents.pdf http://irep.iium.edu.my/44228/3/Final_Paper_BEMP_2015-Mohamed_Asmy_%26_Hassanudin.pdf
first_indexed	2023-09-18T21:02:53Z
last_indexed	2023-09-18T21:02:53Z
_version_	1777410741614149632

What is the solution to overcome the financial challenges of SMEs in Indonesia? Exploiting the potential of crowfunding in changing SMEs' financial landscape in Indonesia

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