Tag: SMEs

SMEs’ CREDIT DEMAND AND ECONOMIC GROWTH IN INDONESIA

M. Shabri ABD. MAJID

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

mshabri@unsyiah.ac.id

HAMDANI

Financial Consultant for the SMEs and Bank’s Partner, Aceh Province, Indonesia, Graduate Student in Economics, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

hamdani.aceh@gmail.com

Muhammad NASIR

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

nasirmsi@yahoo.com

FAISAL

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

faisal_nurmala@yahoo.com

Abstract

This study aims at empirically exploring the short- and long-run relationships between economic growth, non-performing loans, interest rates and the credit demand by the small and medium enterprises (SMEs) in Aceh province, Indonesia. The quarterly data for the period 1995 to 2015 were analyzed by the cointegration and vector error correction model (VECM). The study documented that there was a cointegration among the economic growth, non-performing loans, interest rates and the credit demand, implying the existence of long-run equilibrium among the variables. In addition, in short-run, the study found a unidirectional causality from economic growth to credit demand, a bidirectional causality between interest rates and credit demand, while no causality existed between non-performance loan and credit demand by the SMEs in Aceh, Indonesia. Thus, to enhance the SMEs, the government should focus on promoting the economic growth by managing the stability of interest rates in the province.

Keywords: Credit demand, Economic growth, Non-performing loan, SMEs.

JEL classification: C22, E59, O49, H81
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THE ROLE OF SMES IN SUSTAINABLE REGIONAL DEVELOPMENT AND LOCAL BUSINESS INTEGRATION: THE CASE OF LUBLIN REGION (POLAND)

Anna ARENT

Faculty of Management – Lublin University of Technology, Poland, http://en.pollub.pl/
a.arent@pollub.pl

Matylda BOJAR

Faculty of Management – Lublin University of Technology, Poland, http://en.pollub.pl/
m.bojar@pollub.pl

Francisco DINIZ

Centre for Transdisciplinary Development Studies (CETRAD); Quinta dos Prados, 5000-801 Vila Real, Portugal, http://www.cetrad.info/
fdiniz@utad.pt

Nelson DUARTE

School of Management and Technology of Felgueiras – Polytechnic of Porto – CIICESI, www.estgf.ipp.pt, and CETRAD http://www.cetrad.info/, Portugal
nduarte@estgf.ipp.pt

Abstract

This paper analyses the role of SMEs in regional development, focusing the particular case of Lublin Region in Poland. This study aims, in a first stage, to analyse entrepreneurs’ view of their role in local and regional development, by the adoption of sustainability strategies. After that, it will also be explored the relation between sustainable development and other variables such as: business local integration, firm age, number of years in the actual location, or firm legal form. The methodology adopted was the questionnaire, in order to get entrepreneurs opinion. 314 questionnaires were answered by managers from SMEs operating the in region of Lublin, acting the in the manufacturing and construction sectors. Results show the economic perspective as the major concern of entrepreneurs. Most of firms present a proactive attitude towards to sustainable development – older firms present a greater concern with social and environmental issues. It was also identified the existence of high levels of local integration. However, firms that are operating behind regional frontiers are promoting a more efficient local development than local acting firms.

Keywords: SMEs, Sustainable Development, Local/Regional Development

JEL classification: M10, O14, O18, O44

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