Factors That Affect The Perception Of Small And Medium-Sized Businesses (Smes)’ Community On The Importance Of Financial Statements, The Amount Of Credit Received And Implementation Prospects

Abstract

The research aims to determine the perception of those practicing SMEs and examine the effect of the quality of financial statements of SMEs on the amount of credit received using several indicators, such as education background, education level, size of the business, age, quality of financial statements, credit guarantee, credit amount received and term loans. Data is collected through a questionnaire distribution from 40 respondents who run their business in the city of Jayapura. The results show that the education background and the level of education do not influence the perception of SMEs' actors, but the size and age of business do. While the size, age, credit guarantees and credit terms affect the amount of credit received, the quality of financial reports does not. This is likely due to the fact that the financial statement of SMEs have not been sources of reliable and relevant information for the banks in their decision to provide credit for SMEs' business.

Micro, Small and Medium Enterprises’ Understanding in Preparing Financial Statements Based on Sak Etap

“…Research by Hutadjulu and Blesia (2016) shows that the scale of business also influences the perception of MSME actors on the importance of financial statements that aim to provide information and completeness of credit applications, performance evaluation, and decision making in developing businesses. The larger the scale of business, the greater awareness will be of learning financial reporting methods based on SAK ETAP.…”

“…The larger the scale of business, the greater awareness will be of learning financial reporting methods based on SAK ETAP. Understanding in preparing financial statements based on SAK ETAP is very important to have to retain and maintain the efforts that have been carried out (Hutadjulu and Blesia, 2016 (Budiman et al, 2017).…”

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“…Skills can either be generic, referring to general transferable skills, or specific to certain work functions, such as managing people, computing, dealing with risk and uncertainty, or developing a new product or service (Tether et al, 2005). According to Hutadjulu & Blesia, (2016) The age of business is one of the considerations in the business assessment by banks and investors because it can assess the stage of business and its track record undertaken over the years. The age of business has a positive effect on the perception.…”