MICRO, SMALL AND MEDIUM ENTERPRISES PERFORMANCE BEFORE AND AFTER RECEIVING CREDITS

Abstract

Micro Small and Medium Enterprises (SMEs) is an private business that has an important role in the economic growth of rural people. As an economic stimulus, SMEs gives a high support to Indonesia's economic. All aspects of economic development that need special attention especially in the sector of SMEs, because SMEs can improve the economy and welfare, especially small communities whose economies are still weak. The problems and barriers of the SMEs development is the limitation of capital which used to manage its business. One effort that can be done by SMEs to overcome these problems is to obtain working capital credit loans from Lembaga Perkreditan Desa (LPD). This aim of this study is to determine whether there are differences performance of Small and Medium Enterprises (SMEs) before and after receiving working capital credit from Lembaga Perkreditan Desa (LPD) Pekraman Desa Batuyang. Sampling method in this research is using simple random sampling technique by using slovin formula which result 76 SMEs as the research sampling. Research data analyzed by wilcoxon signed rank test method. The results of this study indicate that there are differences in the performance of SMEs before and after receiving working capital credit measured from the level of sales turnover, profitability, liquidity and leverage. This results indicate that SMEs can utilize the capital which came from debt efficienly, so the SMEs performance will increased which shown by the increased of sales omzet and profitability.