REPUBLIKA.CO.ID, BANDUNG - Government needs at least 2.5 trillion IDR to create 517.624 small and middle enterprises (SME) in 2014. The Director General of Small Medium Enterprises in The Ministry of Industry, Euis Saedah, assumes an SME needs 5 million IDR as the initial capital.

Saedah said, the new entrepreneurs should be supported with business environment, including by providing the initial capital for the entrepreneurs. In developed countries, the initial capital is provided by the government through certain financial board and the same time they also need some venture capital (VC).

Legal certainty and flexible interest rates play important role to boost the number of new entrepreneurs. "Starting new business might not be simple for new entrepreneurs. The problem is the capital and unfortunately no such bank are willing to offer initial capital with flexible interest rates,” Saedah said. 

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