The Analysis of Working Capital Financing Sources (A Study on Large Red Chili Farmers in Sempu District, Banyuwangi Regency)

Abstract

Large red chili farming is a farming that has an important role in Indonesian economic development. The appropriate selection of working capital financing sources will be able to maximize the business profit for farmers. Therefore, it is important to carry out an effort in order to increase the profit and to minimize the risk of loss. The purpose of this article is to find out the working capital financing sources of large red chili farmers based on their perspectives. The type of research applied is descriptive qualitative. The selection of the informants is conducted by using purposive snowball method. The data analysis method consists of four steps: data collection, data reduction, data presentation, and conclusion. The study concludes that most of large red chili farmers in Sempu use a mixed working capital financing sources. They combine self-financed working capital with working capital obtained from middlemen. Meanwhile, the alternative sources are obtained from cooperatives and other non-formal funding sources.