| Summary: |
Microfinance institutions (MFIs) is an
institution conducting the provision of
financial services to micro and small
entrepreneurs including shallot farmers.
This study aims to determine the accessibility
and the influencing factors of
farmer’s decisions in determining the
source of financing for shallot business
sustainability. The study was conducted
in Bantul as the centre production of
shallot in DIY. Two hundred and five of
farmers (205 persons) as microfinance
client taken randomly, were interviewed
and observed in collecting primary data,
and then analyzed using Multinomial
Logit Model. Farmers group is the
microfinance institution that the most
accessible for farmers to access shortterm
credit scheme (seasonal). The
farmers can defer the payment to the next season in case the crop failure,
while the farmers perceive that the administrative procedures is simple. Tne
education level of farmers, the farming experience, the number of family
members, the frequency of credit, the farmers’ perception about MFI services,
the total income, and the amount of credits are the factors that influence the
decisions of farmers in the selection of the MFI as source of business finance.
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