Increasing Access to Working Capital

Oct 13, 2025 by thesweetdesigns.com 54 views

Introduction

Asahan Regency, a coastal region in Indonesia, has been experiencing a positive trend in sea fisheries production, with an increase in production from 2000 to 2004. However, despite this growth, the income of fishermen in the region remains low, with many classified as poor and marginal. This study aims to investigate the factors that affect fishermen's business income in Asahan Regency, with a focus on identifying the key determinants of their income.

Background

The fishing industry is a significant contributor to the economy of Asahan Regency, providing employment and income for thousands of fishermen. However, the industry is also characterized by low productivity, limited access to resources, and a lack of technology. These factors contribute to the low income of fishermen in the region, making it difficult for them to improve their standard of living.

Methodology

This study was conducted in three sub-districts in Asahan Regency, namely Tanjung Tiram, Talawi, and Fifty. A sample of 60 fishermen was selected for the study, and the Ordinary Least Square (OLS) method was used to analyze the data. The study aimed to identify the factors that affect fishermen's business income, including working capital, labor, long time Mellaut (working hours), and Mellaut experience.

Results

The results of the study showed that several factors have a significant impact on fishermen's business income. These factors include:

Working Capital

Working capital is a critical factor in determining the success rate of fishermen's business. The study found that fishermen with greater working capital tend to earn higher income. This is because working capital provides fishermen with the necessary resources to invest in their business, such as purchasing fishing gear and fuel.

Labor

Labor is another important factor that affects fishermen's business income. The study found that fishermen who have more labor to help with the fishing process tend to earn higher income. This is because labor can increase the efficiency and productivity of the fishing process, resulting in higher catches and income.

Long Time Mellaut (Working Hours)

Long time Mellaut (working hours) is also a significant factor that affects fishermen's business income. The study found that fishermen who spend more time at sea tend to earn higher income. This is because longer working hours increase the chances of catching more fish, resulting in higher income.

Mellaut Experience

Mellaut experience is a factor that has a positive effect on fishermen's business income. However, the study found that this factor is not significant in determining income. This is because experience alone is not enough to guarantee increased income, as other factors such as technology and access to information about fish catching locations also play a crucial role.

Conclusion

The study found that working capital is a dominant factor that affects the business income of fishermen in Asahan Regency. Limited access to working capital is the main obstacle for fishermen to increase their income. To increase fishermen's income in Asahan Regency, comprehensive efforts involving various parties, including the government, non-governmental organizations, and fishermen themselves, are necessary. These efforts should focus on increasing access to working capital, improving the quality of labor, encouraging the use of technology, and strengthening fishermen's institutions.

Recommendations

Based on the findings of the study, the following recommendations are made:

Increasing Access to Working Capital

The government and financial institutions should provide financing schemes that are easily accessible by fishermen with low interest rates and flexible time periods. People's Business Credit Program (KUR) with simpler requirements and fishing group financing programs can be an effective solution.

Improving the Quality of Labor

The government should provide training and education to fishermen to increase their knowledge and skills in managing fisheries businesses. Training on environmentally friendly fishing techniques, catches, and marketing processing also needs to be given.

Encouraging the Use of Technology

The application of appropriate technology in fisheries activities is very important to increase efficiency and productivity. The use of modern fishing gear, accurate navigation system, and data-based applications about fish catching locations can increase catches and minimize losses due to bad weather.

Strengthening Fishermen's Institutions

The formation of a solid and empowered fishing cooperative can strengthen the fishermen's bargaining position in dealing with entrepreneurs and facilitate access to resources such as capital and information.

Future Research Directions

This study provides a foundation for future research on the factors that affect fishermen's business income in Asahan Regency. Future studies can build on this research by exploring other factors that affect income, such as market access and price fluctuations. Additionally, future studies can investigate the impact of policy interventions on fishermen's income and livelihoods.

Limitations of the Study

This study has several limitations. Firstly, the sample size was limited to 60 fishermen, which may not be representative of the entire fishing community in Asahan Regency. Secondly, the study relied on secondary data, which may not be accurate or up-to-date. Finally, the study did not investigate the impact of policy interventions on fishermen's income and livelihoods.

Conclusion

Q: What are the main factors that affect fishermen's business income in Asahan Regency?

A: The main factors that affect fishermen's business income in Asahan Regency are working capital, labor, long time Mellaut (working hours), and Mellaut experience. However, working capital is a dominant factor that affects the business income of fishermen in Asahan Regency.

Q: Why is working capital a dominant factor in determining fishermen's business income?

A: Working capital is a critical factor in determining the success rate of fishermen's business. Fishermen with greater working capital tend to earn higher income because working capital provides them with the necessary resources to invest in their business, such as purchasing fishing gear and fuel.

Q: What is the impact of labor on fishermen's business income?

A: Labor is another important factor that affects fishermen's business income. Fishermen who have more labor to help with the fishing process tend to earn higher income. This is because labor can increase the efficiency and productivity of the fishing process, resulting in higher catches and income.

Q: How does long time Mellaut (working hours) affect fishermen's business income?

A: Long time Mellaut (working hours) is also a significant factor that affects fishermen's business income. Fishermen who spend more time at sea tend to earn higher income. This is because longer working hours increase the chances of catching more fish, resulting in higher income.

Q: What is the role of Mellaut experience in determining fishermen's business income?

A: Mellaut experience is a factor that has a positive effect on fishermen's business income. However, the study found that this factor is not significant in determining income. This is because experience alone is not enough to guarantee increased income, as other factors such as technology and access to information about fish catching locations also play a crucial role.

Q: What are the recommendations for increasing fishermen's income in Asahan Regency?

A: The recommendations for increasing fishermen's income in Asahan Regency include:

Increasing access to working capital through government and financial institutions
Improving the quality of labor through training and education
Encouraging the use of technology in fisheries activities
Strengthening fishermen's institutions through the formation of a solid and empowered fishing cooperative

Q: What are the limitations of this study?

A: The limitations of this study include:

The sample size was limited to 60 fishermen, which may not be representative of the entire fishing community in Asahan Regency
The study relied on secondary data, which may not be accurate or up-to-date
The study did not investigate the impact of policy interventions on fishermen's income and livelihoods

Q: What are the future research directions for this study?

A: The future research directions for this study include:

Exploring other factors that affect fishermen's business income, such as market access and price fluctuations
Investigating the impact of policy interventions on fishermen's income and livelihoods
Conducting a more in-depth analysis of the factors that affect fishermen's business income in Asahan Regency

Q: What are the implications of this study for policymakers and stakeholders?

A: The implications of this study for policymakers and stakeholders include:

The need to increase access to working capital for fishermen in Asahan Regency
The importance of improving the quality of labor through training and education
The need to encourage the use of technology in fisheries activities
The importance of strengthening fishermen's institutions through the formation of a solid and empowered fishing cooperative