Chapter 17: Does Financing Source Affect Productivity and Efficiency in Tuna Fishing Business?

The focus of this study is to analyze the impact of financing sources on productivity and technical efficiency of the tuna fishing business in Sendang Biru Coastal, Indonesia, in order to improve the entrepreneurship goals. This research used the quantitative explanatory method. The results showed that fishermen's difficulty accessing traditional financing sources (banks and cooperatives) became a constrain in optimizing production activities. The financing source used by Sendang Biru fishermen for their business activities mostly comes from “Pengambek.” The logit regression analysis shows that the number of fishing gear and the size of the boat owned by fishermen have a positive and statistically significant effect on the opportunities for fishers to obtain traditional financing. The ability of fishers to obtain business financing sources positively impacts the productivity and technical efficiency of the tuna fishing business. Our research implies developing a financing system in coastal environment business, especially in the tuna fishing industry.