HEALTH ASSESSMENT AND FUNDING ELIGIBILITY OF MICRO AND SMALL BUSINESSESS ON GELAP NYAWANG STREET, BANDUNG FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By ATIKAH Student ID: 29122303 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG MEI 2025 i ABSTRACT HEALTH ASSESSMENT AND FUNDING ELIGIBILITY OF MICRO AND SMALL BUSINESSESS ON GELAP NYAWANG STREET, BANDUNG By Atikah Student ID: 29122303 (Master of Business Administration Program) Access to funding remains a major challenge for Micro, Small, and Medium Enterprises (MSMEs) despite their vital role in economic growth. This research examines the MSME soundness and funding eligibility of MSMEs in Gelap Nyawang, emphasizing the role of academic institutions in supporting their growth. Using a mixed-methods approach, this study assesses the funding eligibility using the MSME Soundness Assessment, incorporating AHP Scoring, linear regression, and qualitative insights from financial institutions. Findings reveal that while most MSMEs have strong financial ratio (means=79.52) and non-financial (means=52.75) scores, many fail to meet lender criteria, particularly Repayment Capacity (RPC) and Installment To Disposable Income Ratio (IDIR). Linear regression results show that education is the only significant factor influencing MSME soundness (p=0.033), indicating a link between financial management skills and business sustainability. The study identifies significant gaps in marketing effectiveness and financial literacy, which hinder access to credit. Additionally, regulatory fragmentation within the street vendors’ ecosystem creates governance challenges. This research provides practical recommendations, including structured financial training programs, digital marketing adoption, and the development of clearer regulatory frameworks to The GreaterHub ITB. By addressing these issues, MSMEs can enhance their financial viability and improve their chances of securing funding. Future studies may explore the long-term effects of these interventions on MSME growth and their broader economic contributions. Keywords: AHP, Business Growth, Financial Eligibility, Funding Access, MSME Soundness ii ABSTRAK USULAN STRATEGI UNTUK MENINGKATKAN AKSES PENDANAAN BAGI UMKM DENGAN MENGGUNAKAN METODE SOUNDNESS ASSESSMENT DAN AHP (STUDI KASUS GELAP NYAWANG) Oleh Atikah 29122303 (Program Studi Magister Administrasi Bisnis) Akses pendanaan tetap menjadi tantangan utama bagi Usaha Mikro, Kecil, dan Menengah (UMKM) meskipun perannya sangat penting dalam pertumbuhan ekonomi. Penelitian ini meneliti kesehatan dan kelayakan pendanaan UMKM di Gelap Nyawang, dengan menekankan peran institusi akademik dalam mendukung pertumbuhan mereka. Dengan menggunakan pendekatan mixed-methods, penelitian ini menilai kelayakan pendanaan melalui Penilaian Kesehatan UMKM, yang mencakup Skoring AHP, regresi linier, dan wawasan kualitatif dari lembaga keuangan. Temuan menunjukkan bahwa meskipun sebagian besar UMKM memiliki skor rasio keuangan yang kuat (mean = 79,52) dan skor non-keuangan yang cukup baik (mean = 52,75), banyak yang gagal memenuhi kriteria pemberi pinjaman, terutama dalam aspek Kapasitas Pembayaran Kembali (RPC) dan Rasio Cicilan terhadap Pendapatan Disposable (IDIR). Hasil regresi linier menunjukkan bahwa pendidikan adalah satu-satunya faktor signifikan yang memengaruhi kesehatan UMKM (p = 0,033), yang mengindikasikan adanya hubungan antara keterampilan manajemen keuangan dan keberlanjutan bisnis. Studi ini mengidentifikasi kesenjangan yang signifikan dalam efektivitas pemasaran dan literasi keuangan, yang menghambat akses ke kredit. Selain itu, fragmentasi regulasi dalam ekosistem pedagang kaki lima menciptakan tantangan dalam tata kelola. Penelitian ini memberikan rekomendasi praktis, termasuk program pelatihan keuangan yang terstruktur, adopsi pemasaran digital, dan pengembangan kerangka regulasi yang lebih jelas melalui The GreaterHub ITB. Dengan mengatasi permasalahan ini, UMKM dapat meningkatkan kelayakan finansial mereka dan memperbesar peluang untuk mendapatkan pendanaan. Studi selanjutnya dapat mengeksplorasi dampak jangka panjang dari intervensi ini terhadap pertumbuhan UMKM dan kontribusi ekonomi yang lebih luas. Keywords: AHP, Business Growth, Financial Eligibility, Funding Access, MSME Soundness iii HEALTH ASSESSMENT AND FUNDING ELIGIBILITY OF MICRO AND SMALL BUSINESSESS ON GELAP NYAWANG STREET, BANDUNG VALIDATION PAGE By Atikah Student ID: 29122303 Master of Business Administration Program Institut Teknologi Bandung Approved Date: 14 April 2025 Supervisor Yunieta Anny Nainggolan, S.E., M.Com., Ph.D. iv DECLARATION OF NON-PLAGIARISM Plagiarism is: Taking, using, and submitting a work of another, including an idea, writing, or invention, as if it was her or his own. Plagiarism includes (but not limited to): 1. quoting verbatim the work of another without acknowledgement of the source; 2. paraphrasing the work of another without acknowledgement of the source; 3. using the idea of another without acknowledgement of the source; 4. submitting the work of another without identifying clearly who did the work; 5. colluding by submitting the work of another as her or his own with consent from the other. I understand that Plagiarism is wrong, a breach of academic integrity, and against Program, School, and University’s Policy and Regulation. I declare that all material in this Final Project is original, my own work, and does not involve plagiarism. I have not allowed, and will not allow, another to copy my work with the intention of submitting it as her or his own work. Name Atikah___________________________________Student ID_ 29122303___ Signed _______________________________________________Date____April 2025_________ v FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceed upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Atikah. (2025): Health Assessment And Funding Eligibility Of Micro And Small Businessess On Gelap Nyawang Street, Bandung, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vi DECLARATIONPAGE This final project is dedicated to parents, brothers and sisters, and my beloved family who always support me. vii ACKNOWLEDGEMENTS I would like to express my deepest gratitude and appreciation to everyone who has contributed to my success in pursuing my Master of Business Administration degree at the School of Business and Management, Institut Teknologi Bandung. I wish to acknowledge and thank the following individuals and organizations for their support and guidance. First and foremost, my heartfelt thanks go to my advisor, Mrs. Yunieta Anny Nainggolan, for her invaluable knowledge and guidance throughout my research, enabling me to complete my final project. I also extend my gratitude to every member of the MBA program for their dedication and service, providing students with an excellent learning environment. Special thanks to my parents, sisters, brother, and all family members for their unwavering support and prayers throughout my studies, and for always believing in my ability to achieve this degree. I am profoundly grateful to my classmates in YP 68 B, particularly Syndicate 1, for fostering engaging discussions in class that have enriched my knowledge and contributed to my career development. Furthermore I am also deeply thankful to the Indonesia Endowment Fund for Education (LPDP) for providing the scholarship that made this academic pursuit possible. Lastly, I would like to acknowledge myself for the determination and resilience I displayed throughout the program, despite initial doubts. Sincerely, thank you to all the individuals and organizations who played a part in my academic journey. viii TABLE OF CONTENTS ABSTRACT ........................................................................................................... i ABSTRAK .......................................................................................................... ii VALIDATION PAGE ...........................................................................................