The Impact of Harmonious Culture and Entrepreneurship Training on Loan Repayment Performance at Microfinance in Indonesia

Abstract

Studies on a topic such as a loan repayment at microfinance institutions are increasingly interesting due to the slumped current global economic condition and the many occurrences of bad debts. Various ways found by the researchers to increase loan repayment. Those ways are, for example, monitoring, mentoring, training, and economic approach. The research is different to previous research in terms of the approach used, which is by linking harmonious culture to the loan repayment rate. The research aims to analyse the relationship between entrepreneurship training and harmonious culture in the effort to increase loan repayment of companies (debtors). 358 qualified debtors are used in the research. Data on the loan repayment rate in 2012 is used as a base for evaluation and re-evaluated in 2017 in the same sample. In addition, an assessment of the perception of debtors toward the entrepreneurship training and the implementation of harmonious culture by microfinance institutions is conducted through questionnaire distribution. Data collected is analysed using regression analysis. The result of regression analysis indicates that entrepreneurship training in form of the ability to develop business, entrepreneurship skill, and marketing skill has no relationship with loan repayment rate. Assistance program in form of cost in increasing faith to God through ceremonies at the companies give new spirit to achieve optimism in business progress since debtors believe that there are other forces in addition to human efforts that could change the business achievement. Cultural activities in maintaining the harmonious relationship with others and the natural environment give a positive impact on the increase in loan repayment. Harmonious culture implemented by the debtors linked to business activities in form of loan repayment is something new. The research result gives suggestion on the human capital theory that harmonious culture is an attribute in determining one's performance.

Actors Affecting the Probability of Default of the Melli Bank’s Loans in Agricultural Sector in North, South and Razavi Khorasan Provinces in Iran

“…If calculated from the above relation is greater than its value in the table, it indicates that the null hypothesis is not accepted, i.e., the current models correct value. The met parameters are obtained from the maximum straightening method (Astawa, 2018) & (Lin, 2009). Where is a binary variable when the experimental group for the recipient i is equal to j, it is equal to one, and if it is not equal, it will be equal to zero.…”

“…That is, if the coefficient is positive, the probability of being in one class increases and decreases in another. For this purpose, we must go to the interpretation of the final effects (Astawa, 2018).…”

“…Calculating the final effect of a variable shows the amount of change in the explanatory variable x k on the probability of being in class j, which is shown below (Astawa, 2018).…”

“…This will contribute significantly to the choice of customers with less risk. In fact, the separation of customers is done in order to determine what group of customers are "customers with low credit risk" (with a high probability of repayment of financial obligations) and what group of customers are "customers with high credit risk" (with a high probability non-repayment of financial obligations) (Astawa, 2018). However, creating credit models requires data mining techniques, customer payment records, demographic characteristics, and statistical techniques.…”

Internalisasi Tri Hita Karana Dalam Usaha Pencegahan Fraud Pada Lembaga Perkreditan Desa (Lpd) Bali Indonesia

“…THK adalah hubungan harmonis yang dijaga serta dilaksanakan dalam kehidupan masyarakat Hindu di Bali (Astawa, 2013). THK terdiri dari palemahan (harmonisasi antara manusia dengan lingkungan), pawongan (harmonisasi antara manusia dengan sesama manusia), dan parahyangan (harmonisasi antara manusia dengan Tuhan) (Astawa, 2018). THK merupakan cerminan bahwa hubungan yang harmonis akan mewujudkan kebaikan (Wirajaya, dkk.…”