MSME Managers' Experience in Facing Financing Challenges in the Digital Era

Abstract

This study aims to analyze the challenges faced by MSME managers in Cirebon City in accessing digital financing and the factors that affect their success in utilizing digital financing services. In this digital era, MSMEs face significant challenges related to understanding digital financing products, data security, and limited access to technology. This study uses a qualitative approach with a case study design, where data is obtained through in-depth interviews and observations of MSME managers registered at the Cirebon City Cooperatives and MSMEs Office. The results show that the majority of MSME managers have difficulty understanding digital financing procedures, and many of them feel anxious about the security of their personal data. Additionally, a lack of digital financial literacy is the primary obstacle to accessing digital financing. Governments and financial institutions provide significant support in helping MSMEs overcome these barriers, primarily through training and information related to digital funding. The implication of this research is the importance of increasing digital financial literacy among MSME managers and providing easier and safer access to technology-based financing.