Mobility of SMEs from Entrepreneurial to Start-Up Stage

This study aimed to analyze the mobility stage of SMEs from entrepreneurial to start-up stage in the context of bankability in Indonesia. This study contributed to the existing literature through focusing on entrepreneurial to start-up SMEs. The qualitative content analysis and causal loop diagram from system dynamics methodology are used as the method to highlight the categorization of the data and to make a model for financing stage of SME. It aims to analyze the access of borrowers at non-bankable stage to transform to bankability stage. The findings show that the SMEs are still using internal funding and venture capital in the entrepreneurial stage. While in start-up stage, SMEs use government grants, capital market, banking sources, non-bank financing and internal funding. The importance of the findings lies on its addition of knowledge of SMEs that can help financial institutions to achieve the sustainable development goals (SDGs). It is believed that bankability will improve micro and SME access to finance, and thus provide the enterprises more opportunities to grow, and finally support economic growth.