Funding Seen as Key for UMKM to Move Up a Level and Expand Operations
The role of mikro, kecil, dan menengah (UMKM) is increasingly important in maintaining national economic circulation. In addition to being the largest absorbers of labour, the UMKM sector is also a pillar of regional economic activity. However, amidst growing market opportunities, many micro and small businesses still face the classic challenge of limited access to financing to develop their ventures.
This condition makes financing access seen as a key factor in driving UMKM growth, from boosting production capacity, expanding markets, to creating new jobs.
Efforts to broaden access to business capital include Astra Credit Companies (ACC) through the ACC Danaku financing product. The product was developed to help communities and UMKM access funding that is more flexible and reliable. ACC Danaku is also strengthening its support for the development of UMKM in various areas, including the culinary sector in Surabaya which has continued to develop in recent years.
One UMKM operator who has felt the support of this financing is Sulistiyowati Ningsih, a culinary entrepreneur in Surabaya who runs a catering business and the production of nasi bungkus to be sold back by other traders. In addition to catering, Sulistiyowati also produces wet cakes, tumpeng, and boxed rice for various office event needs. As market demand has grown, she sees opportunities to expand her business, but was initially hindered by capital needs.
In 2021, Sulistiyowati took out a new car loan at Astra Credit Companies Surabaya 3. After that, she reapplied for business capital financing through ACC Danaku to support the development of her culinary business. With the additional capital, Sulistiyowati began adding more food product variants and increasing the capacity of her catering venture.
The ACC Surabaya Waru Branch Manager, Julian Limawan Hidayat, said ACC continues to develop the ACC Danaku service as part of its efforts to support the public and business operators in developing their financial needs. “In line with ACC’s mission ‘To Promote Credit for A Better Living’, ACC continues to develop the ACC Danaku product to support UMKM in developing their businesses,” said Julian.
According to him, ACC Danaku presents as a financial solution designed to be more flexible for various community needs, including capital needs for UMKM operators. In addition to business development, the financing service can also be used for various other needs such as education, home renovation, weddings, holidays, and even gold investment.
In the face of financing needs that remain a major challenge for UMKM, easier and safer financing access is seen as able to help micro and small entrepreneurs strengthen their competitiveness while sustaining their businesses in the long term. (E-4)