The Effectiveness of Small Business Loans and People’s Business Loans on Increasing Competitiveness through Small Business Financial Performance at PT. Bank Mandiri, Sulawesi Maluku, Indonesia

ABSTRACT: Research objectives: (1) to partially analyze the effect of the effectiveness of small business credit(KUK) and people’s business credit (KUR) on financial performance, (2) to partially analyze the effect of theeffectiveness of small business credit (KUK), people’s business credit. (KUR) and financial performancetowards increasing competitiveness. (3) to analyze the effect of financial performance on increasingcompetitiveness. Quantitative research approach. The population is 15,000 small business operators and asample of 389 people. The data collection method used a questionnaire. The sample collection technique waspurposive sampling. The method of analysis used Structural Equation Model (SEM) -Partial Least Square. Theresults of the study: (1) Partially there is a positive and significant influence between the effectiveness of smallbusiness credit (KUK) and people’s business credit (KUR) on financial performance, (2) The effectiveness ofsmall business loans has a positive and significant effect on increasing competitiveness, (3) The effectiveness ofsmall business credit distribution has a positive and insignificant effect on increasing competitiveness, (4)Partially there is a positive and significant effect between the effectiveness of small business credit (KUK) andpeople’s business credit (KUR) on increasing competitiveness through performance finance.

Keywords: Small Business Credit Effectiveness, People’s Business Credit Effectiveness, FinancialPerformance, Competitiveness