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Financial Inclusion and Performance to Mediate the Effect of Banking and Tax Regulation on the Success of Small and Medium Enterprises in Indonesia

Author

Listed:
  • H.E. Riwayati
  • U. Salim
  • G. Maskie
  • N.K. Indrawati

Abstract

Purpose: The research is to analyse the influence of banking and tax regulation that is mediated by financial performance and inclusion of business actors and moderated social responsibility to business success. Design/methodology/approach: The sample used in this research is Small and Medium Enterprises in Wijirejo batik Village, Pandak District, Bantul Regency, and Yogyakarta, Indonesia. The census sampling technique method was used. The population is amounted to 76 batik business actors. The method of analysis is Wrap-PLS 5.0. Findings: The results showed tha implementation of banking and tax regulation for small and medium business actors has a number of positive consequences to success of the business involved. Among them regulation of banks through the determination of rate interest on credit, the ease of credit application and the speed of credit process supported by good business management and financial knowledge (financial inclusion) is a good determinant factor in increasing capital, business scale, profit and business management. Tax regulation through the determination of tax rate, ease of tax access, simplification of tax procedure and transparency regarding taxes supported by good business management and financial knowledge (financial inclusion) become the determinant factor in increasing capital, business scale, profit and business management. Practical implications: The results are interesting from the theoretical and practical aspect to be applied for the financial inclusion. Originality/Value: The paper contains a formalized approach to the success of Small and Medium Enterprises in Indonesia.

Suggested Citation

  • H.E. Riwayati & U. Salim & G. Maskie & N.K. Indrawati, 2020. "Financial Inclusion and Performance to Mediate the Effect of Banking and Tax Regulation on the Success of Small and Medium Enterprises in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 517-533.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:3:p:517-533
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    References listed on IDEAS

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    1. Kehinde A. Obasan & Kareem A. Arikewuyo, 2012. "The Effect of Pre-Post Bank Consolidation on the Accessibility of Finance to SMEs in Nigeria," Business and Management Research, Business and Management Research, Sciedu Press, vol. 1(3), pages 108-120, September.
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    Cited by:

    1. Yohanes Ferry Cahaya, 2023. "The influence of Customer Engagement and Financial Literacy on Loyalty is mediated by Customer Trust," GATR Journals jfbr215, Global Academy of Training and Research (GATR) Enterprise.

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    More about this item

    Keywords

    Financial inclusion; regulation; business tax.;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G19 - Financial Economics - - General Financial Markets - - - Other

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