Abstract:
This study examines the effect of microcredit and emergency loans on business growth
in Timor–Leste's economy, specifically in KAEBAUK, from January 2023 to January 2025.
Micro, small, and medium enterprises (MSMEs) are important for Timor – Leste economic
development, although those Micro, small, and medium enterprise MSMEs are still facing
many barriers, such as limited access to finance, insufficient facilities, and low financial
literacy. Kaebauk had made an important contribution by providing financial services such as
microcredit and emergency loans. A quantitative method was used to collect data from 180
respondents via structured questionnaires and analyze them using SPSS. The data indicate that
both Microcredit and emergency loan utilization have considerably improved business
growth, as measured through revenue, employment, assets, and repayment. Financial
Knowledge increases the successful utilization of these services. Overall, the study shows that
having access to credit, combined with financial education, increases the MSME survivability
and promotes Timor-Leste's economic growth in general.
