Micro Financial Structure Empowerment of Creative Small and Medium Enterprises (SMEs)

Abstract

Abstract-Creative industry occupies a strategic position in the development of industry in Indonesia today. Its improvement still encounters obstacles, especially with regard to the financial structure. Therefore, this study aimed to gain an overview of the financial structure, and identify factors driving and inhibiting in the development of creative SMEs financial structure based on local raw materials in West Java. The research used qualitative methods, data collected by observations, interviews, and literature study. The results shows that there are still a lot of potentials that could be developed include the potential market is very large, so it is necessary to strengthen the financial structure of micro. So it is expected to improve the competitiveness of SMEs both at home and abroad. There are several constraints faced by developing the strengthening of the financial structure of micro channeled through cooperatives, is generally associated with knowledge about microfinance inadequate. The driving factors in developing microfinance structures associated with the market potential and SMEs are growing in line with the creativity of SMEs especially in the West Java -based local materials through financing undertaken by the cooperative. The overall result showed that the strengthening of the financial structure of micro SMEs based creative local raw materials in West Java can improve competitiveness both domestically and abroad.