Mediation and Facilitation of the Poor Society Financing Access to Microfinance Institutions

Microfinance offers loans to the poor with the aim of improving their living standards. Empowerment of microfinance becomes important and strategic through the formulation of policies and programs that are right on target. However, in its development there are still problems faced, especially the difficulty of accessing capital and financing. This study aims to examine how perceived benefits mediate the effect of microfinance accessibility on the utilization of microfinance. This study utilized a quantitative approach by using a structured questionnaire developed for the purpose in consultation with experts in the field. Survey was conducted in 2021 of 629 microfinances at Banten Province, Indonesia. Moderated regression analysis was used in data analysis. The result shows that the impact of microfinance accessibility on increasing the utilization of microfinance when the perceived benefit is maximized. This study recommends other constructs such as financial literacy, community, and population density as factors which driving microfinance growth. The results can be a reference for policy makers to further improvement of the existing policy framework and provide more opportunities for microfinance to improve its service strategy to the community.