Kajian Faktor-Faktor yang Mendukung Pengembangan Usaha Mikro Kecil dan Menengah: Studi Kasus di Kota Surakarta Supporting Factors of Usaha Mikro Kecil Dan Menengah (UMKM) Development: A Cases Study In Surakarta City

Abstract

This study is performed to review to what extent UMKM in Surakarta manage the capital structure and maximize potention of available funds to improve the performance of the company. In addition, this study is also intended to find out the influence of capital structures, bussiness environment, and the strategy related to UMKM performance. The findings hopefully can be applied as a consideration in a policy formulation related to UMKM development in Surakarta City. The respondents of this study is 56 UMKM in Surakarta City. Using descriptive analysis and doubleregression analysis, the study reveal that UMKM has not yet maximally utilized the available funds to manage its capital structures to improve their performance. This occur as a result of lack of control and guidance from third party (creditors or investors). UMKM also need to improve their adaptation capability to the dinamic bussiness environment, in which it negatively impacts the UMKM development. A better and proper bussiness strategy is needed to improve the performance of UMKM. The lack capabilities of UMKM in its resources management to be more effective and efficient become a prominent problem to develop UMKM. Support from government still shows no positive impact. Some of possible factors include the support given or provided was spread unevenly, to unproper target, discontinuation, or only partly assistances. Keywords: UMKM, capital structures, performanc