Local wisdom in rural microfinance: a descriptive study on villagers of East Sumba

Like Soegiono (), Apriani Dorkas Rambu Atahau (), Harijono Harijono () and Andrian Dolfriandra Huruta ()
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Like Soegiono: Satya Wacana Christian University, Indonesia
Apriani Dorkas Rambu Atahau: Satya Wacana Christian University, Indonesia
Harijono Harijono: Satya Wacana Christian University, Indonesia
Andrian Dolfriandra Huruta: Satya Wacana Christian University, Indonesia

Entrepreneurship and Sustainability Issues, 2019, vol. 6, issue 3, 1485-1496

Abstract: Developing microfinance in rural areas by considering local wisdom in Sumba-island becomes an urgent issue due to limited access to formal financial services experienced by the majority of the villagers. This study aims at describing the forms of local wisdom in rural microfinance to overcome problems of access to financial services. This is in line with the government program of financial inclusion for villagers in the remote area. This study uses the qualitative method in the form of a case study in Mbatakapidu village in East Sumba region. Data was collected through observation and focus group discussion with community leaders and several non-government organizations. The findings show the existence of local wisdom in saving and investing by the villagers to overcome the limited access to formal financial services. In addition, there is evidence of village development using a bottom-up approach by considering the local wisdom to reduce poverty through microfinance development. Thus, culture-led development might be an alternative policy for the local government in developing microfinance.

Keywords: microfinance; local wisdom; sustainable development; Sumba (search for similar items in EconPapers)
JEL-codes: G23 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1485-1496

DOI: 10.9770/jesi.2019.6.3(30)

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