UKM Development Business Loan

The aim for this paper is a) to identify the difficulties and problems faced by UKM in obtaining venture capital loans. b) Determining the strategy of development of UKM through increased ease of working capital credit facilities through credit channeling institution. Design/methodology/approach : This type of research is exploratory. Types of data used are data collected by primary and save a list of questions. Findings : The results are as follows: More than 50% of UKM have difficulty capital. UKM that utilize external capital sources of credit channeling institution only at 17.50%. Reason UKM have not utilized most of the credit is a factor of the policies, terms and loan interest rates are quite high.. Research limitations/implications : Location of the research done on UMKM in the district of Nganjuk. Practical implications : there are several strategies that can be done are (1) Optimizing the role KKMB in nurturing and mentoring the UKM prospect will apply for business loans, (2) promoting financing for results or venture capital, (3) enhance the role of credit guarantee institutions for UKM prospects will hit their collateral requirements. It is expected that with the implementation of the above strategies, the prospects of UKM no longer have difficulty in obtaining loans from the venture capital Credit Channeling Institutions. Originality/value : UKM provide a significant contribution to employment, amounting to 99.6 percent. Meanwhile, the contribution of UKM to Gross Domestic Product (PDB) by 56.7 percent. In the process of economic recovery of Indonesia, the UMKM sector has a strategic role and importance that can be viewed from various aspects


INTRODUCTION
Micro, small and medium enterprises (UMKM) are businesses engaged in various business sectors, which touch the interests of the community. Based on BPS data (2003), the population of small and medium enterprises (UMKM) amounted to 42.5 million units, or 99.9 percent of all businesses in the country.
UKM provide a significant contribution to employment, amounting to 99.6 percent. Meanwhile, the contribution of UKM to Gross Domestic Product (PDB) by 56.7 percent.
In the process of economic recovery of Indonesia, the UMKM sector has a strategic role and importance that can be viewed from various aspects. First,a large number of industry and found in every sector of the economy. Based on data from the Central Statistics Agenc y (BPS) in 2002, the number of UKM recorded 41.36 million units or 99.9% of total business units. Second, its great potential in employment. Each investment unit in MUMKM sector can create more jobs than the same investment in large enterprises. MUMKM sector absorbs 76.55 million workers, or 99.5% of the total labor force that works.
Thirdly, the contribution of UKM to PDB is quite significant, amounting to 55.3% of total PDB. One effort to increase and development of UKM in the national economy is done by encouraging venture capital lending to MUKM. From the point of banking, lending to UKM profitable for the bank. The First, relatively small level of traffic jams. This is mainly due to the small business customer compliance level is higher than big business customers. Second, lending to UKM to encourage the spread of risk, for lending to small businesses with a nominal value of small loans allow banks to increase the number of customers, so that credit is not concentrated in one specific group or sector. Third, UMKM loans with a number of customers are relatively more will be able to diversify the loan portfolio and spread the risk of lending. Fourth, mortgage interest rates on ISSN : 2597-4785 (ONLINE) ISSN : 2597-4750 (PRINTED)

UK M Development Business Loan
Muh. Barid Nizarudin Wajdi, Yuli Choirul Ummah, Devit Etika sari 101 | P a g e market interest rate for small businesses is not a major problem, allowing lenders to earn sufficient interest. Experience indicates that the availability of funds at the right time, in the right amount, the right target and with a simple procedure that is more important than the interest cost and subsidy.
However, some things that the background as mentioned above, is still not quite be the cornerstone belief that UKM will get the ease of filing of venture capital credit facility to the lending institutions both banking and non-banking.
Until now there are many UKM are experiencing problems in terms of business credit application.

PURPOSE OF WRITING
The purpose of this paper include: a) identify the difficulties and problems faced by UKM in obtaining venture capital loans. b) Determining the strategy of development of UKM through increased ease of working capital credit facilities through credit channeling institution. .

MATERIAL AND METHOD
The type of research conducted is Explanatory Research. This research type is chosen in order to build an analysis result that can function to explain, predict and control a symptom or relation between independent variable with dependent variable (Sugiyono, 2005: 56). In this study, the data used are primary and secondary data. Primary data is obtained from UKM The population in this study are the street UMKM and UKM, which number 30 in Nganjuk District Nganjuk Regency. And this study will use the total population because the amount is not too large.
The method of data analysis used in this research is by using method of

b. Socializing Pattern Sharing Financing or Venture Capital Funding
For some UKM who feel burdened by high interest rates, the need for venture capital may be submitted to financial institutions that apply the pattern of cooperation with the outcome. Where the return is given UKM in accordance with the results obtained at the time of UKM so that UKM are not burdened with high interest rates. Financial institutions that apply the pattern of results is a Venture Capital Financing Company with the concept of a pure revenue sharing or for the results placement.
In terms of nature Characteristic Gain Venture Capital Risk (tend to be more willing to take risks), this financing has a looser procedures and prefer the prospects and potential of UKM in its development efforts. This financing can be done in the short term and long (up to 4 years).
Venture Capital Funding not only to channel funds from the shareholders and bank loans but also channeling funds government programs at a cheaper rate than the rate commercial loans.

c. Increasing the participation of the Credit Guarantee Institution
Another alternative that can be used to overcome the problems of MUMKM lending is credit guarantee scheme. In these schemes, the Bank and Guarantee Company made a loan guarantee agreement. UKM which ISSN : 2597-4785  Furthermore Guarantee Company will conduct a feasibility analysis. If the loans are feasible for guaranteed, then the Company Guarantor will provide guarantees to small businesses that are expressed in the form of Certificate is Assurance. The guarantee given on the small businesses that are guaranteed to be paid to the guarantee fee Guarantee Company.
If the guaranteed credit congested, the Guarantee Company will check whether the existing conditions meet the terms and conditions agreed upon by the Company Guarantor and the Bank. When all the requirements have been met, then the Guarantee Company will make a payment claim.
Furthermore, the Company Guarantor entitled to subrogation receivables for the portion of loans guaranteed. After payment of claims made, the Bank still have to collect until the debt is paid off. The results of that billing is divided proportionally between the Company Guarantor and the Bank in accordance with the percentage of credit guarantee. With the credit guara ntee, then: Hopefully, by the credit guarantee scheme for UKM, then the UKM are experiencing problems in terms of collateral can be resolved because of the guarantee of the credit guarantee institutions. The channeling institutions credit will feel safe in extending credit to UKM.

CONCLUSION
UKM very dominant compared with other business scale. In addition, the role of small businesses in absorbing labor is relatively large. So that business development is a strategic step in improving public welfare and national economic growth. More than 50% of UKM have difficulty capital. UKM that utilize external capital sources of credit channeling institution only at 17.50%.
Reason UKM have not utilized most of the credit is a factor of the policies, terms and loan interest rates are quite high.
Therefore in order to further develop UKM, then there are several strategies that can be done are (1) Optimizing the role KKMB in nurturing and mentoring the UKM prospect will apply for business loans, (2) promoting financing for results or venture capital, (3) enhance the role of credit guarantee institutions for UKM prospects will hit their collateral requirements. It is expected that with the implementation of the above strategies, the prospects of UKM no longer have difficulty in obtaining loans from the venture capital Credit Channeling Institutions