INFORMAL MICRO FINANCE INSTITUTIONS (IMFIs) AND THE DEVELOPMENT OF TOURISM ENTREPRENEURSHIP IN INDONESIA: SMALL TOURISM FIRMS (STFs) IN THE KENJERAN BEACH AREA

Abstract

Financial institutions have an important role in financing Micro, Small, and Medium Enterprises (MSMEs) in the tourism sector. The MSMEs of tourism industry or The Small Tourism Firms (STFs) were sharing the same meaning. Formal micro finance institutions and informal micro finance institutions have contributed to the sustainability of these STFs. In Indonesia, the existence of Informal Micro Finance Institutions is special because of the convenience offered compared to financing from formal micro finance institutions. This study aims to determine the role of Informal Micro Finance Institutions for Small Tourism Firms around the tourist attractions of Kenjeran Beach. Does it act as business financing or consumption financing. This research is descriptive research with qualitative approach. The data were collected with in-depth interview methods, participatory observation, and documentation. The data were analyzed with data reduction, data interpretation, data triangulation, and conclusion drawing. The results showed that Informal Micro Finance Institutions which were accessed by 6 units of Small Tourism Firms has a role as business financing. The STFs also have made a relatively good progress in their businesses, but takes a great discipline from them not to over accessing the financial support from IMFIs otherwise they got burdened with loans.