The Effectiveness of the Revolving Capital to Improve the Development of Cooperative and Micro, Small, and Medium Enterprises (MSMS) in Kediri

Abstract

The purpose of this research to analyze the provision of revolving capital can increase the development of micro small and medium enterprises (MSMS) and test hypotheses whether the provision of revolving capital has leverage a positive influence and significant to the development of MSMS. The  method of  this research is survey. The population of  this researh are all of MSMS that get revolving capital, and the number  of MSMS are 25. Whereas the number of the sample are 15. The reason MSMS is showing growing significantly. The sampling technique  is random sampling. To analyze revolving capital funds is used a descriptive analysis as the average and the percentage.To analyze the growth of MSMS is used a formula of the increase of productivity, the formula of the increase in business volume, the formula of the rise of added value and the percent of the increase of the employment infiltrating. To test hypotheses is used a formula linier regretion. The Instrument and the data collection technique  in this research are orientation to the interview, documentation and questioner.

The result of  hipotesis test  is the linier model may be accepted or simultaneously (together) all of the free variables (rolling capital) can give the influence to the dependent variables (MSMS expansion) but this influence is not significant.The result showed that the business development of MSMS 1) from a sample of 15 totals and 86.67% undergoing development, 6.66%a temporary to stop business and the owner moves other  professionals, 6.66%has a business stopping. It means the moving modal is effective to increase the development of Cooperation and MSME 2) there is a positive influence between a rolling capital and the development of MSMS .It means the higher revolving capital will be followed by the increase in the development of MSMS but the influence of revolving capital to the development of MSMS is not significant.

The conclution of this research is, 1 ) the business development of MSMS, from a sample of a totals of 15 and 86,67 % undergoing the development, 6,66 % a temporary to stop business and the owner moves other  professionals, 6,66 %  has a business stopping. It means the moving modal is effective to increase the development of Cooperation and MSMEs. 2 ) there is a positive influence between a rolling capital and the development of MSMS .It means the higher revolving capital will be followed by the increase in the development of MSMS but the influence of revolving capital to the development of MSMS is not significant. 3) There are some causes why the moving modal has an effective impact but not significant because the strengthening of the modal is one of empowering to the Cooperation and MSMEs besides empowering in other forms, such as:a. Education and training; b. The management guiding and the developing of technology; c. The product marketing; d. Facilitating the cooperation between Cooperation and MSMEs with other enterprises. e. Protecting and giving the appropriate law for the business developing made by Cooperation and MSMEs; f. Facilitating the Right of Intellectual Wealth; and g. facilitating the organization activity of Cooperation and MSMEs. 4) It is needed the analysis of the empowering need to Cooperation and MSMEs. The purpose is to identify the empowering need needed by Cooperation and MSMEs in order to the empowering having made is on target, so it doesn’t waste the source.

Keywords: cooperatives, development, MSMS, rolling capital.

DOI: 10.7176/JESD/10-18-08

Publication date:September 30^th 2019