Optimum financial management in small and medium-sized enterprises
Optimum financial management in small and medium-sized enterprises

Summary/Abstract: Small and medium-sized enterprises (SMEs) play a prominent role in promoting economic growth, reducing unemployment, advancing technology, and promoting exports of a country. Therefore, considering the importance of SMEs in the economy of any country, it is very necessary to provide a platform for the formation and, more importantly, the growth and sustainability of these enterprises. Lack of capital and lack of access to financial resources are among the problems that SMEs face. The aim of this article is to examine the factors affecting the access to financial resources of SMEs in Indonesian industrial estates, and this study seeks to answer this question by providing optimal financial resources and sensitivity analysis of these SMEs. This study examines the effect of different methods of financing, including short-term debt and long-term debt, on the growth of SMEs in Indonesian industries during the period of 2020-2023. This study was conducted using a panel data method. The results show that the variables of facility interest rate, firm size, firm age, loan amount, and time are among the most important factors affecting firms’ access to loans. Furthermore, the sensitivity analysis of the research model shows that if only the financial dimension, such as changes in total costs, is considered, the company is more sensitive to environmental uncertainty and the possibility of liquidity and profitability crises is greater, while integrated attention to the financial and physical dimensions, such as changes in demand, has shown that the company operates more stably in terms of profitability and liquidity under conditions of uncertainty.

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