MicrofinancMicrofinance Institutions Financing Solution for Small and Medium Enterprisese Institutions Financing Solution for Small and Medium Enterprises

Abstract

The aim of this research is to determine the role of microfinance institutions in empowering small and medium-sized enterprises (SMEs). Financial institutions function as supportive financial intermediaries, which are essential for ensuring the smooth operation of the economy. SMEs greatly depend on the role of microfinance institutions, particularly in terms of funding, to expand markets and develop their businesses, thereby making a significant contribution to the national economy. In this study, a qualitative method is used to describe, record, analyze, and interpret current or existing conditions. The role of microfinance institutions is crucial for small and medium-sized businesses, especially in providing the necessary financing to develop their businesses and access new markets, thus enabling them to have a notable impact on the national economy. After being evaluated, the position of microfinance institutions has strengthened and proven capable of overcoming the ongoing economic crisis. In the long term, SMEs are one of the business sectors that heavily rely on microfinance institutions to support the growth and sustainability of the Indonesian economy.