Bank Loan Financing for Small and Medium Enterprise: Interactive Game Industry Player Perspective

• Main Authors: Wawan Dhewanto, Sri Herliana, Ilham Fadhil, Nur Lawiyah
• Format: Article
• Language: English
• Published: Institut Teknologi Bandung 2019-12-01
• Series: Jurnal Manajemen Teknologi
• Subjects: financing; interactive game company; bank loan; small and medium enterprise; indonesia
• Online Access: https://journal.sbm.itb.ac.id/index.php/mantek/article/view/2893

Abstract. The interactive game sector is one of the promising industries in Indonesia. Indonesia is a developing country, where the creative industry sector in the application and game developer fields is growing well. This developing industry needs supporting infrastructure such as financing and human capital supply. Companies need financing for their operations, marketing, and business expansion. Various funding sources are available for companies such as venture capital, bank loan, personal savings, and liability certificates. Bank loan, a form of conventional financing has its own advantages to support the interactive game industry. On the other hand, the capital structure of interactive game SMEs (small and medium enterprises) holds a small portion of loans, especially bank loan. This study aims to analyze the role of financing support, especially bank loan support for the Indonesian interactive gaming SMEs. The results of the study show that bank loan, although less favored, has the potential to engage more deeply in the interactive gaming industry environment. The study also shows that this type of business has not been maximally touched by banks in financial support. Furthermore, the results show that SMEs that are still in the early stages are more likely to focus on human resources than financial resources. Nevertheless, they still need financial support in several aspects of business development, although not necessary from the support of bank loan. Keywords: Financing, interactive game company, bank loan, small and medium enterprise, Indonesia