CONNECTING MICRO, SMALL, AND MEDIUM ENTERPRISES BORROWERS WITH LENDERS IN USING OF PEER-TO-PEER LENDING PLATFORM

• Main Author: Fadilla, Sarah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/43145
• Institution: Institut Teknologi Bandung

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy in Indonesia. The Gross Domestic Product (GDP) contribution of MSMEs is not as high as their employment contribution. Therefore, it is important to increase MSMEs productivity. Lack of capital still be the major constraint of MSMEs to develop their business. P2P lending is expected to be the alternative financial solution to overcome their constraint. P2P lending platform needs to connect between the MSMEs as the borrower and the lender. This study will identify the factor that influences the intention of borrower and lender in using P2P lending, using 42 samples of MSMEs as the potential borrower and 75 samples of the potential lender. Partial Least Square is used as a statistic method and it is found the one significant factor of borrower and two significant factors of lender in using P2P lending platform. The loan process has a positive influence for borrower to use P2P lending platform. Perceived benefit and alternative payment schemes have positively influenced the lender to use the P2P lending platform. Alternative payment schemes related to free of interest-scheme and using profit-sharing that also contribute to help MSMEs prosper on halal industry. P2P lending helps increasing the financial inclusion. The wider target market needs to be accompanied with continuously improvement of credit scoring system to increase the accuracy as well as develop data security for customer protection. The product offered can be adjusted with the borrower and lender characteristic to fulfill their needs.