Summary: | Micro, small and medium enterprises (MSMEs) is one of economic actors
in national development, which has a strategic role where in 1997, the total
reached 39.7 million units of SMEs, while in the year 2005 has reached 44.5
million. In terms of employment, in 2005, absorbed 77.68 million or 96.78 prosen
of labor. Contribution to national GDP, about 54.22 prosen of GDP (2005) or in
nominal value of Rp1480 trillion. However, in terms of its financing still low. The
causes of the lack of accessibility of SMEs to financial institution (information,
credit requirements, lack of credit collateral weak financial management of
MSMEs), lack of capital, information technology, marketing, and production
factors.
Based on the above descriptions, the research aims to: 1) Examine the
influence of the Local Economy Condition, Condition of SMEs and Government
policies to the existence of KUT and KUR
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