The Effect of People Business Credit on SME’S Development in Central Sulawesi, Indonesia
Abstract. The objectives of this research are: (1) to describe SME’s businessman characteristics in Central Sulawesi, (2) to analyze the effectiveness ofmanagement of People's Business Credit program (capital, manpower absorption, total credit, length of business) to increase added value (profit) for SME’s that have obtained credit through the People's Business Credit (KUR) program. Dummy variable of this study including education, business type, and business location.Population of this research covers all community in targeted location who have received business credit from financial institution in Poso Regency, Donggala Regency, Parigi Moutong Regency, and Palu City. The number of sample in this research 270 SMEs that have been counted using Slovin method. Analysis methods used in this study consisting of descriptive analysisand multiple linear regression. The results show that characteristics of SME’s businessman were found to be homogeneous in terms of age, gender, level of education, number of family dependents, type of business, business experience, business location, sales income, capital fund, capital source, amount of credit, and marketing problems. The results also suggest that the effect of capital before receiving credit, employees, amount of credit, length of business, education, type of business, and business location simultaneously perform significant effect on business income. The capital before receiving credit, amount of credit, length of business perform positive and significant effect on business income of SME’s which received credit. Meanwhile, education, type of business and business location did not perform significant effect on business income of SME’s that have received credit.
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