Unskilled
600 – 1.000
Max 100
1.000
200
4.000
Note:
H = High, or Independent Employee
M = Medium,or Medium Independent or 50% dependent to their employer
L = Low,or Low Independent, or highly dependent to their employer
3The Gap Summary
3.1.1Bank and Entrepreneur in asset based lending Perspective
Basically, collateral in loan requirement provides two conflicting hypotheses as answers (Manuel, 2006).On one hand, we can argue that the small firm owners will make non performing loan if they received loan, so the bank need collateral to prevent it. On the other hands, we can argue that small firm owners will not make non performing loan if they received loan, but they don’t have any collateral to prove it.
3.1.2Student and University Perspective
Most of University in Indonesia was established to serve the needs of large organizations; even they had rebranding their school as Entrepreneur University. The fact is the external factors like public policy, bureaucracy, loan and collateral system for entrepreneur has never been appeared in curriculum. Others, most of university, business school or school of business and economic, does not have any Small Medium Enterprise incubator or pilot project, whether it gives overall business knowledge for its undergraduate and graduate students.
Else, most of their lecturer was also had less experience in entrepreneurship and Indonesia has few Professors in Entrepreneurship. Therefore, the student who have passion in entrepreneurship, could not start their own business career as entrepreneur as soon as possible after they had graduated.
3.1.3Policy Maker and Bureaucracy Staff Perspective
According to detailed explanation above, Indonesia have a gap between policy maker and their bureaucracy staff in the field. The gap had been make constraint during the independent district era (otonomi). The length of the license process has made significant constraint to the entrepreneur development.
3.1.4Credit Proportion and Interest Rate in Global Financial Market Period
The interest rate and the credit proportion during the Global financial market has made the lack in entrepreneurship development. In this period, the government has low control to the credit and interest rate policy, for example the hierarchy of credit. Every citizen, including entrepreneur have to pass the hierarchy of credit, which are Credit Card (45%), KTA (33%), and Consumer (24%), before they could proposed to take the KUR (16%) or working capital (12%) and investment loan (12%). Else, the proportion of consumer loan is very high around 80%, which could not give additional value to the entrepreneurship development, although we know that the basic rules of business is profit oriented.
4Research Aim
My objective in this research is:
- Investigate the impact of KUR policy for National economies development.
- Analyses the gap perceptions in collateral between SME owners and the banks manager/account officer,
- Identify the lack of loan for SMEs in asset based lending perspective.
- Identify the potential collateral or alternative collateral for future collateral policy for SMEs in this sector, or other loan technique such as credit scoring lending, relationship lending or trust leverage, and financial statement lending (Moro and Kodwani, 2010).
5Method
This research had used two methods, focus groups with phenomenological interviewing and a survey of firms in Jakarta and Bekasi, Indonesia and had been collected during the period 2006-2009. Data from the focus groups and interview had been transcribed (Luke and Jon, 2003).
Qualitative technique had been deemed appropriate for this study because I am dealing with soft and complex issues involving elements of process over time (Curran and Blackburn, 2001; Oinas, 1999). Such issues are difficult to quantify (Hammersley, 1992). A framework for data collection and analysis had been developed from the literature review (Ian, Eleanor, and Sarah, 2010). Two research approach had been used in these research are 1) Informal phenomenological interviewing of SMEs owner/managers 2) Focus group discussion with bank manager / account officer.
5.1Respondent
Firms employing less than ten people dominated the study, which coincides with the number of micro businesses in Indonesia business and sector profiles. In addition, small firms represent the largest majority of the population of firms in developing countries (Moro and Kodwani, 2010), and the data had been collected during the period 2006-2009.
Accordingly, I looked to select a balance of owners/managers based on sector, structure of business (Ian, Eleanor, and Sarah, 2010) and bank manager which give the loan. The research focused on SMEs in the ICT retail store and service, food and beverage, printings, pump service and automotive service. The research also focused on 4 largest National banks in Indonesia, which are supported by the government to release KUR such as BNI, BRI, Mandiri, Bukopin, and 2 CSR BUMN, such as PELINDO II, ANTAM.
Others supporting data had been used to this research are ASKRINDO insurance manager, the government insurance company, which is supporting the KUR policy.
6Conclusion and Solution
According to the fact described above, I conclude that there is several fact of lack, which has contributed to the failure of entrepreneur. The failure are :
- Bank and Entrepreneur in asset based lending Perspective,
Solution: Change the lending requirement, for example their graduate certificate. Others change the lending technique. From 4 type or lending technique, relationship lending or trust leverage is more valuable, even it have. We can start with, creating database community development and select their queen bee / leader in every community. The leader or the queen bee will be the personal guarantor. Else, we also can start with creating mass competition in every district or representative office, with a purpose to create entrepreneur database in various community. Last, creating partnership with university or independent consultant or hired professional loan analyst, which has passion and capability in entrepreneurship, to analyst and proposed the potential entrepreneur, and they also work or have a duty as their supervisor or trainer.
- Student and University Perspective
Solution: Change or add new curriculum in the university course. The curriculum or courses have to have a entrepreneur map. The maps should included the internal and the external factor, such as family culture and stereotype constrain, human resources for entrepreneur, join venture or franchise as financing solution for new entrepreneur. The external factors which should be included in the course, such as the policy and the lack of bureaucracy, the interest rate and collateral technique for new entrepreneur.
- Policy Maker and Bureaucracy Staff Perspective
Solution: Change the “oknum or dirty people” in the bureaucracy, creating new criteria for new entrance candidate or employee. Giving and equal punish and reward for the staff in charge. Creating a smart and mass publication, like in the television and the contact number if the entrepreneur has a problem (as long as they are qualified). Making an on-line self assessment or business license track, and proposed credit on-line tracking system. Create a new contract policy, especially for potential entrepreneur, who have less collateral.
