ABSTRACT
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of national economy. However, there are still many problems faced by SMEs among other are the availability of capital, the difficulties to access financial institution as a lender, low understanding in business management, limited market access, and lack of science and technology mastery. This study aims to analyze the effectiveness of microcredit financing provided by banks and business management training on MSMEs performance. The method used in this research is mixed method using Sequential Explanatory Analysis. Quantitative data was analyzed with Partial Least Square (PLS) and to convert ordinal data into interval data this study used Rasch Model. The subject of this study is the customers who are getting microcredit loan from Jabar-Banten Bank (BJB) located in Regional 1. The results show that microcredit financing and business management training partially have a positive and significant impact on the performance of MSMEs with path coefficients 8.352, which is bigger than 1.96 (t-stat). It means that good quality of microcredit and the good quality of training on business man-agement would result in a better business performance for MSMEs.
