Credit Small and Medium Enterprises (SMEs) - why the develop to slow ?
April 6, 2009
Having own enterprises is everyone dreams, but how to make our business work is a big job. Small Enterprises in crisis like now very difficult to develop because they still have the classical problems, inadequate security and lack of trust in banks. Because of that what should we do to develop our enterprises??….maybe the main factor here is capital. Growth of small businesses at this time considered slow because banks tend to not give them for credit.
Reluctance pour banking credit to small businesses is reflected in the share of small business credit (KUK) to the total credit that tend to be increasingly smaller from year to year. Beside that a bank think that Credit Small and Medium Enterprises (SMEs) now is not make an advantages for them. Bank think that it better to make investation in loan because the property sector generally big. That makes the cost of administration and the time needed a little more. Whereas if a small business loan small. So, take a lot of time and services to achieve the same amount of credit with a credit properties. Beside because of the crisis ,the minim credit also can caused an small and medium enterprises more slow and sector like textile, handicraft, furniture that is the number of small business performance continues to dwindle and decline.
Many companies are experiencing operational difficulties due to increased interest rates and weakening the exchange rate. Furthermore, this condition worse with the contraction of the market impact on the company, while the production continuitas disrupted due to the rising price of raw materials production. This condition causes the company experienced difficulties in the payment of debt (loan default), and then menjurus in financial difficulties (financial distress). The difficulty in payment of debt and financial difficulties have caused many companies to collapse. To overcome things do not happen like this we have to do marketing with the market information, market opportunities, the campaign included exhibitions and national and international goods in accordance with the commodity produced.
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