Technology-Based Financing Increases the Growth of Agribusiness SMEs in Underserved Areas of South Sumatra Indonesia

Lisa Hermawati, Ema Pusvita and Nirmala Jayanti
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Lisa Hermawati: Lecturer in Development Economics Study Program, Faculty of Economics and Business, Baturaja University, South Sumatra, Indonesia
Ema Pusvita: Lecturer of Agribusiness Study Program, Faculty of Agriculture, Baturaja University, South Sumatra, Indonesia
Nirmala Jayanti: Lecturer in Agribusiness, University of South Sumatra, South Sumatra, Indonesia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 3s, 6289-6295

Abstract: Technology-based financing (fintech) emerged as an innovative solution in supporting the growth of agri-business Small and Medium Enterprises (SMEs), especially in underdeveloped areas. This research aimed to analyze the influence of technology-based financing on increasing the productivity and sustainability of agri-business SMEs. The methodology used in this research was a quantitative approach with data collection through surveys and interviews with 150 respondents consisting of agri-business SME owners in several underdeveloped areas in Indonesia. The results showed that fintech increased access to capital by 40%, which contributed to a 30% increase in productivity within one production cycle. Furthermore, SMEs that utilized fintech platforms reported better financial management efficiency and product diversification compared to those using traditional financing. This research provided strategic recommendations for the government and fintech service providers to expand financial inclusion in underdeveloped areas, as well as strengthen the agri-business SME economy through more effective partnerships.

Date: 2024
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