Abstract: The purpose of this article is to provide an overview of the roles of microfinance institutions in relationship for sustainability of the micro entrepreneurs in Indonesia. Specifically, this paper aims to develop a conceptual framework predicting the relationship of the role of microfinance to the sustainability of micro entrepreneurs. Micro finance institutions in Indonesia play an active role in contributing to micro financing activities. These roles are performed as a manifestation of Law Number 1 year 2013 on micro finance institutions. The presentation of this article is divided into the following formats: (1) the history of microfinance institutions in Indonesia, (2) the conceptual definition of microfinance institutions, (3) the exposure of the implementation of Law Number 1 year 2013, (4) Form the current of micro finance institutions, (5) the roles of micro finance institutions for sustainability of micro entrepreneurs. By Law number 1 year 2013 on micro finance institutions in Indonesia today supports micro business actors in maintaining business and business development in the future. The contribution of this article helps provide an overview for the parties related to the management of microfinance institutions and micro business actors to support the growth of the micro entrepreneurs in Indonesia. Instead that, the purpose of micro finance institution is not only to seek profit, but also to increase the income and welfare of the people and to help increase the economic empowerment and productivity of society.
Keywords: Microfinance Institution, Micro Entrepreneurs, Sustainability.
Title: ROLES OF MICROFINANCE INSTITUTIONS FOR SUSTAINABILITY OF MICRO ENTREPRENEURS IN INDONESIA
Author: Yohana F. Cahya Palupi Meilani, Sabrina O. Sihombing, Budi Hartono Kusuma
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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