TASK GROUP OF ENTREPRENEURSHIP "FINANCING"

CHAPTER I
INTRODUCTION

1.1 Background
Establishment of a business or business is definitely going to require a capital to finance the business, whether it is for small-scale businesses, medium and large scale enterprises. But not all prospective entrepreneurs have sufficient capital to establish his business. This has always been a problem for the novice entrepreneur.
In determining capital financing, entrepreneurs should determine the amount of funding and time needed, as well as projected sales and growth of the company. Small medium enterprises are usually difficult to venture capital is different from large companies that have the potential to evolve.
Financing or funding the beginning of a typical business are patterned according to personal financial planning. A prospective entrepreneur would first use personal savings and then try to gain access to savings family and friends. If these sources are insufficient, entrepreneurs will seek more funding official channels, such as banks and investors from outside parties. And the funding sources exist in the form of equity financing and debt financing.
Most sources of equity funding is personal savings, friends and relatives, small investors in the communities, large corporations, speculators, and the sale of shares of common stock in the market (go public). While the sources of debt financing are individual investors, dealers, asset based lenders, commercial banks, government-supported programs, and public financial institutions.
Based on the above, we try to discuss and analyze the things what are the problems in the financing of new ventures and what solutions can be used as problem solvers.
CHAPTER II
THEORY

2.1 FINANCING
2.1.1 Definition of Financing
Kasmir (2008:96), "Financing is the provision of cash or equivalent, based on an agreement between the bank and other parties who require parties to repay the money or the bill after a certain period of time in exchange or for the results".
Financing by Muhammad (2006:304), "the broadest sense means financing or expenditure, incurred the funding to support investments that have been planned, executed either by themselves or by others. In a narrow sense, the financing used to define funding by financial institutions, such as the Islamic Bank to its customers. In this sense the condition of the financing to be narrow and passive ".
According to Antonio (2001:90) "Financing is one of the bank's main task is the provision of funding facilities to meet the needs of those who are deficit units".
In a narrow sense "is used to define financing Financing by financing institutions such as the Islamic bank to the customer."
Broadly financing "means financing financing or funding the expenditures incurred to support the planned investment, either self-inflicted or done by others."

2.2 Purpose and Function of Financing
2.2.1 Objectives Financing
According to Antonio (2001:97), the purpose of financing is to increase the employment opportunities and economic prosperity. The financing should be enjoyed by as many employers are engaged in industry, agriculture, and commerce to support employment opportunities and support the production and distribution of goods and services in order to meet domestic needs and for export.
2.2.2 Functions funding
Finance function by Rival (2008:89) are as follows:
1. For profit and enliven the banking business in Indonesia.
2. Help low-income people who always played by the lender by assisting with funding for the work done.

2.3 Elements - elements of Financing
The element - the element contained in the financing arrives in Kashmir (2008:98) are as follows:
1. Confidence
Trust is a belief that the financing provided correct - really welcome back in the future following the term that has been given deal.
2. Period
Any financing provided for a certain period, the period covering the financial returns that have been agreed upon. A period of installment repayment deadline that has been agreed by both parties. For certain conditions this time period can be extended as needed.
3. Risk
Due to the grace period, then the financing will allow a return of the risk of uncollectible or bad administration of a financing. The longer the term of the financing, the greater the risk, and vice versa.
4. Fringe benefits
In conventional bank remuneration known as interest. Besides remuneration in the form of bank interest also charge an administration fee to the customer who is also the bank's profit.

2.4 Type - Type of Financing
The types of financing according to Antonio (2001:160) are as follows:
1. Based on the purpose of use is
a. Working Capital Financing
Financing working capital financing is intended to provide venture capital such as, among others, the purchase of raw materials or goods to be traded.
b. Financing Investment
Investment financing is funding for capital purchases of production equipment and facilities or the purchase of capital goods in the form of fixed assets / inventory by.
c. Consumer Financing
Consumer financing is intended to finance the purchase of an item that is used for the benefit of an individual (personal).
2. Based Payment / Installment For Results
a. Installment Financing With Periodic Principal and Profit Sharing
b. Financing With Revenue Cost of Periodic and Final Installment
c. Installment Financing With Main and End Results For
3. By Period of administration
a. Short-Term Financing with generally under 1 year.
b. Medium Term Financing with generally equal to 1 year.
c. Long Term Financing, generally over 1 year to 3 years.
d. Financing with a term of over three years in certain cases such as for housing investment financing, or rescue financing
4. Financed by Business Sector
a. Trade sector financing (eg, market, grocery store, grocery shop, etc..)
b. Industry Sector Financing (example: home industry, garment, shoes).

2.5 Principles - Principle of Giving Financing
According Simorangkir (2004:87), in assessing the application for funding should pay attention to several key principles relating to the overall condition of the prospective customer.
1. Character
Ie an assessment of the character or personality of the candidate receiving the funding in order to estimate the likelihood that the recipient of financing to meet its obligations.
2. Capacity
That is a subjective assessment of the recipient's ability to make payments financing. The ability measured by the track record of past funding recipients supported by field observations on its facilities such as shops, employees, equipment, and methods of plant activities.
3. Capital
Ie an assessment of the ability of capital owned by funding recipients as measured by the position of the company as a whole is indicated by the ratio of the emphasis on the financial and capital composition.
4. Collateral
Assurance that owned the candidate receiving financing. This assessment aims to ensure that if a default risk reached happen, then the collateral can be used in lieu of the obligation.
5. Condition
Looking at the economic conditions that occurred in the community specifically to see the relation with the type of work done by the candidate receiving the financing. This is because external conditions play a major role in the running of business funding recipients.

2.6 Financing Institutions
According to article 1, paragraph 2 of Presidential Decree No. 61 of 1988 is a Financing Institution is an entity that performs financial activities in the form of provision of funds or capital goods by not withdraw funds directly from the public. Financing Agency is an entity specifically established to undertake activities in the areas of business including finance institutions. Examples of Financial Institution:
1. Company Lease (Leasing Company)
2. Venture Capital firms (Venture Capital Company)
3. Securities Trading Companies (Securities Company)
4. Factoring companies (Factoring Company)
5. Company Credit Card (Credit Card Company)
6. Consumer Finance Companies (Consumers Finance Company)

2.7 Analysis of Financing
Muhammad (2006:304) states analysis in order to obtain the financing necessary financing provided confidence that can be returned by customers.
1. Type - Type Aspects Analyzed
a) Analysis of policies willingness called qualitative analysis. Aspects analyzed include character / character and commitment from the customer.
b) Analysis of the ability to pay for so-called quantitative analysis. The approach taken in the quantitative calculation, which is to determine the ability to pay and calculation of working capital requirements with the customer is the net income approach.
2. Granting Criteria Financing
I. Never give more consideration to the financing when:
o Compassion
o Contacts (siblings or friends)
o Customer respectable people (famous, respected, high social status, etc..)
II. Prioritize based on the following elements:
o Feasibility of business
o Ability to pay
Aspects assessed before performing cost analysis is
o Ability to benefit
o The rest of the financing with other parties (if any)
o Non-routine outside business activities

CHAPTER III
DISCUSSION

3.1 Financing Problems
Problems encountered related to the usual difficulties faced by entrepreneurs are:
1. Lack of Capital Procurement For Tenant Leasing.
This activity is carried out in the forms of capital procurement for Tenant Leasing, either with or without an option to purchase the item. Procurement of capital goods can also be done by purchasing goods and Leasing Tenants are then hired to try again. Throughout the Lease agreement is still valid, ownership of capital goods Lease transaction object, located in the Business Finance Companies.
2. The Doubtful Receivables Factoring.
This activity is done in the form of short-term trade receivables purchase of a company following the administration of the receivables. Purchase of short-term trade receivables following the processing can be done in the form of accounts receivable factoring without warranty of Seller and the Receivables Factoring Receivables with a guarantee from the seller. The definition of short-term receivables are receivables are due for ever 1 (one) year. Factoring without warranty of Seller Factoring Receivables is an activity in which the finance companies to bear the entire risk of uncollectible receivables.
3. Company failures in meeting their obligations.
Essentially means that a debtor does not pay its debts. Occurs when the debtor's failure to pay was not able to make payment in accordance with the agreed payment schedule both the interest and principal on the debt. Default terms known and used in the financial world to describe a situation where a debtor can not meet their obligations under the agreement he made such debts do not make the payment or repayment of debt principal installments in accordance with the agreement, including violation of the credit requirements as set forth in the counter . This condition can occur on all debt obligations including bonds, mortgages, bank loans, promissory notes paid, Medium Term Note, and other debt agreements. In the majority of the debt agreement (including corporate debt, mortgages, bank loans), debt principal to immediately become due for payment in the event of default. And generally, if a borrower defaulted on a debt owed to any creditor that the agreement also contains provisions regarding "cross failed" or more commonly known in the financial world in terms of the requirements of "cross default" was instantly declared a debtor will default also over other debts. In the event of default is the lender usually will immediately process the failure of the legal process (for example, filed for bankruptcy or foreclosure petition collateral) to secure the rights of creditors in the debt repayment charge.
4. The Company's performance or concept Doubt.
The main reason for refusing the financing of existing companies or new start is a dubious concept of corporate performance or bad. Ketidakminatan two underlying elements of business risk that investors are too high and too low levels of profit and return on invested capital.
5. Lack of experience and business acumen.
Problems such as these have certainly faced by all entrepreneurs who are just starting their business. Not a matter of experience and business acumen will be a negative impact for the survival of their businesses.
6. Capital limitations.
Businesses with little capital is a business where we do not need a lot of capital to get started because we have limited capital. What we need is a willingness to try. Although small with less capital but does not rule out the possibility you can get maximum results.
7. Lack of Relationship Capital Resources.
Establishing a good relationship with the owners of capital is really important because the owners of capital is an important person in the continuity of a business, here is how to establish a relationship with the owners of capital are:
1) There must be a structure of an agreement between the company and investors.
2) Fostering relationships short and long term.
3) Carry out responsibilities well, especially in the completion / return of capital.
8. Company Failure To Follow.
Failure to follow is the reason for the failure of companies to get capital. Generally companies make contact initial contact without preparing memoranda problems will occur.
9. Lack Investor In Investing
Selective investors in investing in entrepreneurs actors create new entrepreneurs difficulties in obtaining additional capital because it does not meet the standard requirements of investors.
10. Difficult Earned Capital
Money is a form of power that is flexible, but the way to get that power can be done by looking for another. Distribution of stock ownership is another way to change the distribution of spending money with a certain number of shares to attract people who might expertise is needed by the company. Most investors have a distaste for big investors to risk. Analysis and screening procedures conducted two types of investors to minimize risk:
a. Wiraswastaan ​​unknown risks that cause loss of capital
b. Risk of loss of time spent on unproductive projects.
11. Financing Not Effective and Efficient
That the purpose of the financing is not an effective and efficient financing issued for things that are not necessary or important as buying items that are not related to the business field at wrestled. Many programs are implemented by using a bit of money.
12. Financing A Less Productive
Financing unproductive occurring within the company, where the company can add value and produce goods and services that have been planned.
13. Any deviation Fund
This problem is almost certainly the case in every company. This happens because of the dishonesty in a person or individual. An example is the "numbers game" is performed by an employee for personal gain.
14. Inability In Purchasing Raw Materials
Inability of the company in the purchase of raw materials due to lack of capital owned by the firm.
15. Difficult Getting Loans
The number of investors who do not have office occupies nameplate, telephone number, and closed the publicity. This kind of situation will complicate entrepreneur investor or lender menenmukan for his new venture. Typically entrepreneurs will approach bankers, notaries, accountants to help get people to provide capital to the new venture.
16. Too amount Lending Provided
For corporate lending to micro, small and medium enterprises (SMEs) is still too high so that the growth of Small and Medium Industries (SMI) is hampered because of difficulty in obtaining low-interest business loans.
17. Profit and Return on Investment The Low
Profit in absolute amounts is essential. If a company has a low profit margin then the company would be less attractive to investors. For example a lot of companies earn 1% on sales of Rp. 1 billion, then this does not warrant the time, trouble, and risk only with profit of Rp1 million. Companies with low sales volume after long periods of operation, low growth potential, backlog inadequate or unrealistic projections also get in trouble with the low rate of return on investment. Company for a period of break-even point (BEP) are long, without any loss of profits that could ditampakan, flow and needs huge investment will provide the return on investment is low.
Solution: a businessman should be able to use funds efficiently in order to yield a high return on investment.
18. Difficulty Requirements and Procedures That Expensive
Financing services to small and medium enterprises and cooperatives (SMEs) in the form of credit or a loan, until now remains an urgent topic. All of these can not be separated from the inequality that shows support SME financing difficulties. On the one hand, SMEC a pillar of the economy of the people, more so in the past to overcome the impact of the economic crisis. On the other hand, SMEs are not enough to obtain the service of capital in proportion. Is there something not right in the SME financing system or implementation at the field level has not been harmonized so that the financing problems of SMEs impressed patchwork.
19. Difficulty Investor Investment Monitor
Investors invested in the company but the company is not transparent in financial reporting so that investors can not monitor their investments.
20. Absence of Identification Purposes of Capital
In entrepreneurship observe the intended use of capital is a very important thing, because capital is one of supporting the success of the company. Then it is not the identification of the intended use of capital is not terarahnya input and output of existing capital in the company.

CHAPTER 4
CLOSING

4.1 SOLUTIONS
1. Uncollectible receivables factoring.
First time in making perjanijian have a factoring agreement with a guarantee from the seller Factoring Receivables is an activity in which the seller bears the risk of uncollectible receivables part or all of the receivables sold to financing companies. If the bad debt recorded as costs, and the company should be more thoroughly in selecting clients.
2. Company failures in meeting their obligations
Then the firm should borrowers deliberate ways by giving its debt repayment plan all or some of its debts, including if necessary to restructure the debt. Especially in companies, suspension of debt payments aimed at improving the economic situation and the ability to make a profit debtors, then this way likely borrowers can repay their obligations.
3. Difficulty in obtaining capital
Before you do a search of venture capital, an entrepreneur also advance the feasibility of carrying out an assessment of the business venture capital sourcing is derived from:
1. Working capital
2. Venture capital (firms and investors)
3. Capital from investors
4. Capital loans from banks

REFERENCES

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Simorangkir. , 2004. Introduction to the financial institution Bank and Non-Bank. Media Discourse partners. Jakarta.
Rival, Rival. , 2008. Islamic Financial Management. King Grafindo. Jakarta.
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