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Welcome to the world of Myth ... and Reality




SMALL BUSINESS ____
Myth and Reality




Some Myth on small businesses - Indonesia context - , their existence and development.
As an effort to enrich the insight of small business support.







Myth
Small Business is weak, large business is strong.

Reality
Small or large is just figuring the business scale, nothing to do with weakness and strength.



Most of Small Business in Indonesia is still in developing and surviving stage, need comprehensive support to promote them.



Myth
High interest rate is not affordable to small business.

Reality
Small businessmen are clients to informal money lender whose interest rate are very very high.



Myth
Large business is always have a good financial structure or good cashflow.

Reality
Many small business subsidized working capital to the Large, for which allowing the Large making 'pending payment' to the Small.




When the large doing business with the small, oftenly the small cannot avoid from 'pending payment' from the Large without any additional 'cost of money' compensation.



Myth
Collateral is asked -to debtor- as prerequisite to credit application in the purpose of minimizing credit risk.

Reality
Most ( ... if not all ) bad debt in Indonesia is due to the debtor with collateral.



Myth
Doing small business is simple, for what the 'experts' give them a training on simple management, simple bookkeeping, simple production technique etc.

Reality
The 'experts' getting sick in implementing the 'simple stuff' they have already trained to the small.



Other interesting pages about Small Business

Warung Indonesia

diALog Homepage

PUPUK page

NGO Network on Small Business



It's nice to be global, but more globalize when being nice

© 1996

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