Dwi Wulandari
There are more than 95% micro-enterprises in Indonesia which require the support of cheap financing. Credit Unions and other MFIs are expected to be able to channel financing at low interest so that Small and Medium Enterprises (SMEs) will be able to grow. This study aims to look at in real terms how the role of Credit Unions and other MFIs in residency of Kediri (Blitar, Tulungagung, Kediri, and Nganjuk Distnct) where this role can be seen from the aspects that support entrepreneurship and development of SMEs in the region, reduce poverty and the problem of unemployment. The approach of this study is a qualitative approach and describes the role of Credit Unions and other MFIsin effort to improve the community economy in residency of Kedin. The choices of these areaswere based on the relevance of the regional government in assisting MFIs in effort to alleviate poverty and unemployment. The results of this study in generalshowed that MFIs have role in poverty alleviation. Efforts are made to encourage people to become entrepreneur of micro, small and medium enterprises with funding support from the Credit Unions and other MFIs.
Faculty of Economics, Universitas Negeri Malang, Indonesia