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.
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.
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.

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