Published date: Jan 24 2024

Journal Title: KnE Social Sciences

Issue title: The 6th International Research Conference on Economics and Business (6th IRCEB)

Pages: 680–689

DOI: 10.18502/kss.v9i4.15111

Achmad Murdionoachmad.murdiono.fe@um.ac.idDepartment of Management, Faculty of Economics and Business, State University of Malang

Subagyo .Department of Management, Faculty of Economics and Business, State University of Malang

Ely SiswantoDepartment of Management, Faculty of Economics and Business, State University of Malang

Nadia AsandimitraDepartment of Management, Faculty of Economics and Business, Surabaya State University

Norzalita Abd AzizGraduate School of Business, Universiti Kebangsaan Malaysia

The existence of MSMEs for the economy in Indonesia is very strategic because of their contribution to gross domestic product (GDP) and high employment. In addition, the MSME sector has proven to be strong in facing national and international economic crises. Even though it has a high contribution it does not mean that MSMEs do not face problems. One of the problems faced by MSMEs is the low ability to develop their business due to limited access to capital. Therefore, this study aims to design and build a funding application (social security equity crowdfunding) for MSMEs. The design of this study uses a research and development approach with four main stages, namely (1). Carry out a preliminary study through theoretical studies and field studies in order to develop an application framework. (2) Compile applications according to the design carried out in the preliminary stage. (3) Conduct expert validation tests and limited-scale trials. (4). The final stage of this research was conducting a large-scale trial of 30 MSMEs in Tulungagung, Kediri and Blitar Regencies. Through research, a funding application is produced with a social security equity crowdfunding scheme that can assist MSMEs in developing alternative funding outside of financial institutions, so as to increase the business capacity and competitiveness of MSMEs at the national and international levels.

Keywords: social security equity crowdfunding application, funding alternatives, MSMEs

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