IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i3sp6289-6295.html
   My bibliography  Save this article

Technology-Based Financing Increases the Growth of Agribusiness SMEs in Underserved Areas of South Sumatra Indonesia

Author

Listed:
  • Lisa Hermawati

    (Lecturer in Development Economics Study Program, Faculty of Economics and Business, Baturaja University, South Sumatra, Indonesia)

  • Ema Pusvita

    (Lecturer of Agribusiness Study Program, Faculty of Agriculture, Baturaja University, South Sumatra, Indonesia)

  • Nirmala Jayanti

    (Lecturer in Agribusiness, University of South Sumatra, South Sumatra, Indonesia)

Abstract

Technology-based financing (fintech) emerged as an innovative solution in supporting the growth of agri-business Small and Medium Enterprises (SMEs), especially in underdeveloped areas. This research aimed to analyze the influence of technology-based financing on increasing the productivity and sustainability of agri-business SMEs. The methodology used in this research was a quantitative approach with data collection through surveys and interviews with 150 respondents consisting of agri-business SME owners in several underdeveloped areas in Indonesia. The results showed that fintech increased access to capital by 40%, which contributed to a 30% increase in productivity within one production cycle. Furthermore, SMEs that utilized fintech platforms reported better financial management efficiency and product diversification compared to those using traditional financing. This research provided strategic recommendations for the government and fintech service providers to expand financial inclusion in underdeveloped areas, as well as strengthen the agri-business SME economy through more effective partnerships.

Suggested Citation

  • Lisa Hermawati & Ema Pusvita & Nirmala Jayanti, 2024. "Technology-Based Financing Increases the Growth of Agribusiness SMEs in Underserved Areas of South Sumatra Indonesia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 6289-6295, December.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:3s:p:6289-6295
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-3s/6289-6295.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/technology-based-financing-increases-the-growth-of-agribusiness-smes-in-underserved-areas-of-south-sumatra-indonesia/
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:3s:p:6289-6295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.