The Role of Banks in the Development ofMicro, Small and Mediumin Indonesia in Dealing with Free Trade Era

Abstract

Development of Small and Medium Enterprises (MSMEs) in the face of free market must be based on the hard effort and continuous in making MSMEs as a tough business. Therefore MSMEs products cultivated at least have a comparative advantage, even highly expected to have a competitive advantage. Banks are financial institutions as required by the people who need funds for both consumer interests and to develop their business interests. Bank in developing its business in addition to seeking funds from the public are also distributed back to the community for a bank that has an important role for communities with a surplus of funds and a lack of funding. Especially MSMEs in developing their business in addition to funds is also in need of guidance in the management of MSMEs so that management can be developed. The number of MSMEs in Indonesia should be well managed in order to compete in the era of free trade today.