The Effect of People Business Credit on SME’S Development in Central Sulawesi, Indonesia

  • Husnah Husnah Department of Management Faculty of Economics
  • Made Antara Department of Agribusiness Faculty of Agriculture
  • Rustam Abdul Rauf Department of Agribusiness Faculty of Agriculture
  • Suparman Suparman Department of Economic Studies Development Studies


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 characterist ics 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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