@article{MAKHILLIBM201711727265,
    title = {Financial Capability of SMEs in Indonesia and the Solutions by Using
Financial Application},
    journal = {International Business Management},
    volume = {11},
    number = {7},
    pages = {1499-1503},
    year = {2017},
    issn = {1993-5250},
    doi = {ibm.2017.1499.1503},
    url = {https://makhillpublications.co/view-article.php?issn=1993-5250&doi=ibm.2017.1499.1503},
    author = {Tatik,R.R. and},
    keywords = {Financial literacy,financial capability,financial system,managing,eagerness,influence},
    abstract = {Lack of Financial capability of Small-Medium Enterprises (SMEs) potentially lead to problems
disturbing performance and growth of SME in Indonesia. This lack also triggers the loss of their competitive
advantage. This problem arises from the less of financial literacy and capability for managing finance. The
objective of this research is to identify financial capability within SME’s and design application tools to
facilitate their financial management. Using qualitative methods, this research interviewed 102 entrepreneurs
in East Java producing local prominent products. Questionnaires were used to measure SME business
performance and financial capability such as financing decision, investment decision and profit management.
Triangulation was used by confirming the interview data, quantitative data and FGD data. Statistic descriptive
was used to analyze the data resulting that 78% of SME has good business performance. Their current sales
grew more than 11%, the problem is that is not easy to investigate their financial performance This growth rate
can be increased if they have eagerness to take a risk by investing more for increasing their production to
penetrate markets. In more detailed way, it was identified the lack financial capability made them difficulty to
manage on preparing financial record, loss-profit report, cash report and assets. By using financial software
application they can manage the financial, so the financial management practices is getting better and in
influence their business performance.}
    }