Transaction cost of micro and small enterprises financing
High transaction costs become one of the obstacles for the micro and small enterprises (MSEs) to access financial loans to the bank. In order to minimize the transaction costs, group lending scheme become alternative, so that both sides are pay lower transaction costs, and MSEs are able to improve...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2016-10-01
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| Series: | Economic Journal of Emerging Markets |
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| Online Access: | https://journal.uii.ac.id/JEP/article/view/5044 |
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| _version_ | 1849329638843613184 |
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| author | Ghana Atma Sulistya Darwanto Darwanto |
| author_facet | Ghana Atma Sulistya Darwanto Darwanto |
| author_sort | Ghana Atma Sulistya |
| collection | DOAJ |
| description | High transaction costs become one of the obstacles for the micro and small enterprises (MSEs) to access financial loans to the bank. In order to minimize the transaction costs, group lending scheme become alternative, so that both sides are pay lower transaction costs, and MSEs are able to improve their welfare. This study aims to analyze the credit process and transaction costs incurred on the model of individuals and groups lending and to compare the magnitude of transaction costs on both models. Mixed Method Analysis is used to analyze the component of transaction costs and the magnitude of the transaction cost on both models.These results indicate there are differences in transaction costs incurred on both schemes. In the amount of the transaction costs, the overall group scheme still allows for greater compared to individual schemes and dominated by the cost of the disbursement. Even so, the transaction cost per member group is much smaller than the individual schemes. |
| format | Article |
| id | doaj-art-a8f501457baf45c2a920950c5d349c32 |
| institution | Kabale University |
| issn | 2086-3128 2502-180X |
| language | English |
| publishDate | 2016-10-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj-art-a8f501457baf45c2a920950c5d349c322025-08-20T03:47:12ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2016-10-0182Transaction cost of micro and small enterprises financingGhana Atma Sulistya0Darwanto Darwanto1Faculty of Economic and Business, Diponegoro UniversityFaculty of Economic and Business, Diponegoro UniversityHigh transaction costs become one of the obstacles for the micro and small enterprises (MSEs) to access financial loans to the bank. In order to minimize the transaction costs, group lending scheme become alternative, so that both sides are pay lower transaction costs, and MSEs are able to improve their welfare. This study aims to analyze the credit process and transaction costs incurred on the model of individuals and groups lending and to compare the magnitude of transaction costs on both models. Mixed Method Analysis is used to analyze the component of transaction costs and the magnitude of the transaction cost on both models.These results indicate there are differences in transaction costs incurred on both schemes. In the amount of the transaction costs, the overall group scheme still allows for greater compared to individual schemes and dominated by the cost of the disbursement. Even so, the transaction cost per member group is much smaller than the individual schemes.https://journal.uii.ac.id/JEP/article/view/5044Institutional EconomicsTransaction CostMicro and Small EntrepreneurGroup LendingSequential Exploratory Design |
| spellingShingle | Ghana Atma Sulistya Darwanto Darwanto Transaction cost of micro and small enterprises financing Economic Journal of Emerging Markets Institutional Economics Transaction Cost Micro and Small Entrepreneur Group Lending Sequential Exploratory Design |
| title | Transaction cost of micro and small enterprises financing |
| title_full | Transaction cost of micro and small enterprises financing |
| title_fullStr | Transaction cost of micro and small enterprises financing |
| title_full_unstemmed | Transaction cost of micro and small enterprises financing |
| title_short | Transaction cost of micro and small enterprises financing |
| title_sort | transaction cost of micro and small enterprises financing |
| topic | Institutional Economics Transaction Cost Micro and Small Entrepreneur Group Lending Sequential Exploratory Design |
| url | https://journal.uii.ac.id/JEP/article/view/5044 |
| work_keys_str_mv | AT ghanaatmasulistya transactioncostofmicroandsmallenterprisesfinancing AT darwantodarwanto transactioncostofmicroandsmallenterprisesfinancing |