Micro Credit Financing in Improving the Development of Small and Medium Micro Enterprises (MSMEs)

Abstract

This research aims to test and analyze the influence of microcredit financing on the development of micro, small, and medium enterprises (MSMEs). The approach used in this research is associative. The population in this study were all taxpayers registered in the PT Pegadaian Helvetia Branch Office. The sample in this study, using the Slovin formula, consisted of 61 people from the PT Pegadaian Helvetia Branch Office. Data collection techniques in this research used observation techniques and questionnaires. The data analysis technique in this research uses a quantitative approach, statistical analysis, outer model analysis, inner model analysis, and hypothesis testing. Data processing in this research uses the PLS (Partial Least Square) software program. The research results show that Microcredit financing is influential in developing Micro, Small, and Medium Enterprises (MSMEs) at PT Pegadaian Helvetia Branch Office.