Bhukuth Augendra, Terrany Bernard and Wulandari Ani
It is assumed that MSMEs growth is limited due to lack of access to the financial markets, therefore MFIs play a role to refine such market imperfection. This paper aims to examine this assumption. A qualitative approach is used to obtain information from MSMEs and MFIs. Eight enterprises and three MFIs; two of them are cooperatives and one government microfinance agency are studied. There is a high demand for credit whereas not all the demand is satisfied mainly those family businesses involved in the informal sector. The main findings exhibit that even when MFIs credit is at disposal, formal and informal MSMEs prefer to draw a loan from Informal Financial Institutions (IFIs) because the market is more flexible than the MFIs which embrace the same strategies as commercial banks.
Augendra Bhukuth, Bernard Terrany and Ani Wulandari
The article analyzes the practices of two NGOs aiming to empower women through entrepreneurship in the province of East Java with the capital city Surabaya, Indonesia. Both NGOs have similar goals: to improve the well-being of women as well as to empower them in their households, communities and businesses; however, they differ in methodologies. Thus, it is thought-provoking to compare the ways and means applied by both NGOs to empower women. Their methodologies are presented and analyzed in order to capture their strengths and weaknesses, following a qualitative study that was carried out in two villages in the surrounding areas of Surabaya, Indonesia.