Economic Transformation through MSMEs (2000–2020): A Systematic Review of Emerging Trends and Insights

This study examines the financial management of Micro Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia which are the drivers of the economy in both countries, but this sector has not been able to become an independent sector and become the foundation of the national economy in both countries. The problem is that financial management in Micro Small and Medium Enterprises (MSMEs) ignores the importance of financial management standards, the problem is that poor financial management makes Micro Small and Medium Enterprises (MSMEs) insignificant in advancing the economy. The method used is descriptive qualitative with a case study approach. Data were obtained from MSME actors by distributing questionnaires and interviews. The results of this study indicate that MSME financial management in Indonesia is not as good as Micro Small and Medium Enterprises (MSMEs) in Malaysia, meaning that Malaysia has better MSME management, this can be seen from various research indicators, namely: planning indicators, budget use, recording, reporting and controlling. Micro Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia when compared to Indonesian Micro Small and Medium Enterprises (MSMEs) do not have good planning, have not carried out standard records, standardized reporting, are not concerned with standard financial statements, balance sheets, profit and loss, cash flow, do not have or install systems in their business units, such as control of systems and procedures, billing records of sales notes, it is very clear that Micro Small and Medium Enterprises (MSMEs) in Indonesia have not done so. Meanwhile, from the other side, when compared to Indonesian MSME respondents, the level is very small, more so for micro cart businesses, small shops that are not in the form of their own buildings, the context is very small. In Malaysia, micro, small and medium enterprises are not comparable to the conditions in Indonesia, while in Malaysia, the Micro Small and Medium Enterprises (MSMEs) already have a more appropriate place. Thus, it is easier for Micro Small and Medium Enterprises (MSMEs) in Malaysia to get banking support, while Micro Small and Medium Enterprises (MSMEs) in Indonesia are still difficult to upgrade and are still difficult to enter the bank compared to Malaysia.

Purpose Knowledge management (KM) is widely adopted by organisations to improve their performance and make informed decisions. Prior research has confirmed that Information Systems (IS) play a critical role in effective KM. The purpose of this study is to examine the existing literature on the role of cloud-based KM systems (C-KMS) in small- and medium-sized enterprise (SMEs) by understanding its impact on the five KM processes: knowledge acquisition, creation, storage, sharing and usage. Design/methodology/approach This study conducted a systematic literature review by examining 133 journal articles and 24 conference papers from 2010 to 2021 on the role of cloud computing in KM for SMEs. Findings This study revealed that there are numerous empirical analyses on KM processes and tools in SMEs; however, only few studies demonstrate how the whole gamut of KM processes can adopt cloud computing in SMEs. Therefore, SMEs are ineffective at KM with limited IS intervention. This paper offers a proposition on how C-KMS can impact all five KM process, thereby increasing its effectiveness of KM in SMEs. This study analysed the benefits of C-KMS that brings to SMEs in terms of availability, scalability, reliability, security and cost. Research limitations/implications This systematic review is restricted to certain databases (ScienceDirect, Sage journals, Scopus and Emerald Insight) and specific IS conference proceedings to source articles. The selection of search criteria and time frame is based on this study’s assessment and choice. This study adds value to our understanding of the role of KM in SMEs, and it reinforces the role of cloud computing in effectively managing knowledge in SMEs. The proposal of C-KMS for the enhancement of KM has significant implications for SMEs to effectively use knowledge for their survival and superior performance. Practical implications This study suggests three practical implications. First, adopting and using C-KMS provide a strong foundation to manage knowledge for SMEs in a cost-effective way. Second, C-KMS improves the effectiveness of KM by increasing availability of knowledge artifacts, which in turn aids SMEs’ growth. Third, C-KMS is useful to codify SME’s knowledge, and accordingly supports employees to acquire and use knowledge based on their requirements. Social implications This study discussed C-KMS with contemporary social issues, such as the COVID-19 pandemic challenges for SMEs and demonstrated how C-KMS can support SMEs to handle such crises by managing knowledge effectively. Originality/value This research highlights the importance of the implementation of a C-KMS for the enhancement of KM in SMEs. The review provides empirical evidence on the challenges faced by SMEs regarding KM, as they often only have enough resources to focus on a single KM process, predominantly knowledge sharing. Consequently, a holistic approach to KM cannot be realised by SMEs. In this context, the findings of this study offer theoretical and practical insights into the role of cloud computing by addressing the challenges of KM in SMEs.

The high number of migrants in the city of Yogyakarta has resulted in increased opportunities for Micro, Small and Medium Enterprises (MSMEs) in Culinary and Handicrafts. The large amount of data collected by the Cooperative Office, which reached thousands, caused inas to have difficulties in determining what training was needed by MSMEs and also difficulties in choosing which MSMEs would receive training held by the Cooperative Office. In addition, the Yogyakarta Cooperatives and UMKM Office had difficulties in selecting which UMKM needed to receive these trainings. Grouping can be used as a strategy in selecting MSMEs and determining training according to their individual needs. The purpose of this study was to group SMEs using the Agglomerative Hierarchical Clustering Single Linkage method and its application to provide recommendations for MSME groups to the Yogyakarta Cooperative and MSME Office. The results of the recommendations for the number of groups can be used in providing implementation, design, and evaluation of the development and empowerment of MSME data in the City of Yogyakarta. This study uses the Agglomerative Hierarchical Clustering Single Linkage method. The stages in this research are Load Data, Cleaning Data, Data Selection, Transformation Data, Clustering Process with AHC single linkage, Silhouette Coefficient, and Knowledge Representation. This research resulted in 2 group recommendations from a total of 1336 Culinary MSME data and 3 group recommendations from a total of 145 Handicraft MSME data. The results of the silhouette score test in the Culinary Sector are included in the strong structure category with a value of 0.79 and the Crafts Sector is included in the Medium Structure category with a value of 0.615. From the number of these groups, recommendations were obtained for improving a service in increasing MSMEs, especially those with a turnover of less than 10 million, marketing purposes within the Yogyakarta area, and not having financial assistance from the government. The high number of immigrants in the city of Yogyakarta has resulted in increased opportunities for Micro, Small and Medium Enterprises (MSMEs) in the Culinary and Crafts sector. The large number of MSMEs creates increasingly higher competitiveness. Apart from that, the large amount of data collected by the Department of Cooperatives and MSMEs, which reaches thousands, causes the Department to have difficulties in efforts to improve and empower these MSMEs. Grouping is one method that can be used as a strategy in mapping MSMEs, especially in efforts to improve and empower MSMEs through training conducted by the Department. The aim of this research is to group MSMEs using the Agglomerative Hierarchical Clustering (AHC) method in an effort to achieve strategies for improving and empowering MSMEs. The focus of this research is[a1] MSMEs in the craft sector and MSMEs in the culinary sector. The results of this research provide 2 group recommendations from a total of 1336 Culinary MSME data and 3 group recommendations from a total of 145 Craft MSME data. The silhouette score test results in the Culinary Sector are in the strong structure category with a value of 0.79 and in the Crafts Sector are in the Medium Structure category with a value of 0.615. From the number of groups in the two MSMEs, strategies were obtained to improve and empower MSMEs, especially those with a turnover of less than 10 million, marketing objectives within the Yogyakarta area, and not having capital assistance from the government. [a1]the result of the revision of the Abstract

Factors Affecting SMEs Emerging Technologies Adoption in Developing Countries: A Literature Review

The purpose of this research to analyze the provision of revolving capital can increase the development of micro small and medium enterprises (MSMS) and test hypotheses whether the provision of revolving capital has leverage a positive influence and significant to the development of MSMS. The method of this research is survey. The population of this researh are all of MSMS that get revolving capital, and the number of MSMS are 25. Whereas the number of the sample are 15. The reason MSMS is showing growing significantly. The sampling technique is random sampling. To analyze revolving capital funds is used a descriptive analysis as the average and the percentage.To analyze the growth of MSMS is used a formula of the increase of productivity, the formula of the increase in business volume, the formula of the rise of added value and the percent of the increase of the employment infiltrating. To test hypotheses is used a formula linier regretion. The Instrument and the data collection technique in this research are orientation to the interview, documentation and questioner. The result of hipotesis test is the linier model may be accepted or simultaneously (together) all of the free variables (rolling capital) can give the influence to the dependent variables (MSMS expansion) but this influence is not significant.The result showed that the business development of MSMS 1) from a sample of 15 totals and 86.67% undergoing development, 6.66%a temporary to stop business and the owner moves other professionals, 6.66%has a business stopping. It means the moving modal is effective to increase the development of Cooperation and MSME 2) there is a positive influence between a rolling capital and the development of MSMS .It means the higher revolving capital will be followed by the increase in the development of MSMS but the influence of revolving capital to the development of MSMS is not significant. The conclution of this research is, 1 ) the business development of MSMS, from a sample of a totals of 15 and 86,67 % undergoing the development, 6,66 % a temporary to stop business and the owner moves other professionals, 6,66 % has a business stopping. It means the moving modal is effective to increase the development of Cooperation and MSMEs. 2 ) there is a positive influence between a rolling capital and the development of MSMS .It means the higher revolving capital will be followed by the increase in the development of MSMS but the influence of revolving capital to the development of MSMS is not significant. 3) There are some causes why the moving modal has an effective impact but not significant because the strengthening of the modal is one of empowering to the Cooperation and MSMEs besides empowering in other forms, such as:a. Education and training; b. The management guiding and the developing of technology; c. The product marketing; d. Facilitating the cooperation between Cooperation and MSMEs with other enterprises. e. Protecting and giving the appropriate law for the business developing made by Cooperation and MSMEs; f. Facilitating the Right of Intellectual Wealth; and g. facilitating the organization activity of Cooperation and MSMEs. 4) It is needed the analysis of the empowering need to Cooperation and MSMEs. The purpose is to identify the empowering need needed by Cooperation and MSMEs in order to the empowering having made is on target, so it doesn’t waste the source. Keywords: cooperatives, development, MSMS, rolling capital. DOI : 10.7176/JESD/10-18-08 Publication date :September 30 th 2019

This Systematic Literature Review explores the challenges and opportunities faced by Micro, Small, and Medium Enterprises (MSMEs) in the era of digital technology. This review aims to identify and analyse the challenges and opportunities of Micro, Small, and Medium Enterprises (MSMEs) in the digital era. The research method used was a thorough search of relevant literature using predetermined search criteria, resulting in 320 articles that met these criteria. These articles were further screened based on their relevance to the research questions, and finally, 58 articles were selected for analysis. The results show that the digital era offers significant opportunities for MSMEs, especially in terms of increased access to markets, resources and information. However, MSMEs also face various challenges, including a lack of digital literacy, limited resources, and intense competition. This study highlights the need for MSMEs to embrace digital technology and develop strategies to overcome these challenges. Overall, this systematic literature review provides valuable insights into the challenges and opportunities for MSMEs in the digital era and emphasises the importance of adapting to the changing business landscape. The findings of this research have practical implications for policymakers, MSMEs and other stakeholders interested in MSME development in the digital era.

Orientation: This study explored the composite business success index (CBSI), a novel framework designed to enhance small and medium enterprise (SME) competitiveness in South Africa by integrating financial and cultural metrics. Research purpose: The aim was to introduce CBSI as a tool for assessing small and medium enterprise performance, combining financial indicators like the cash conversion cycle (CCC) and Altman Z-score with cultural metrics such as the Configurational Accuracy Score for a more holistic evaluation. Motivation for the study: Small and medium enterprises in South Africa face significant challenges, including financial instability and misalignment of organisational culture. Existing performance models often fail to address these non-financial factors, which CBSI integrates into one evaluative tool to improve both financial health and cultural alignment. Research design, approach and method: A pragmatist research approach integrated quantitative and qualitative methodologies, including financial data from small and medium enterprise statements, semi-structured interviews with small and medium enterprise owners and experts and questionnaires to collect cultural data for insight into the role of culture in small and medium enterprise success. Main findings: Composite Business Success Index proved effective in predicting small and medium enterprise performance. Higher CBSI scores (> 0.65) were associated with successful small and medium enterprises, while lower scores (< 0.50) indicated areas for improvement, highlighting the link between financial stability and organisational alignment. Practical/managerial implications: The CBSI offers small and medium enterprise leaders actionable insights for enhancing financial performance and organisational culture, boosting competitiveness and long-term sustainability. Contribution/value-add: By integrating both financial and cultural metrics into a single framework, the CBSI provides a novel tool for assessing and developing small and medium enterprise performance for the small and medium enterprise managers.

This study aims to determine the Determinants of the Performance of Small and Medium Enterprises (SMEs) in Barru Regency. The method used in this study is a quantitative approach and the type of research conducted is survey research. The population used is Small and Medium Enterprises in the manufacturing industry sector in Barru Regency, which is 1672 business units. The number of samples is 94 small and medium enterprises. The data sources used are primary data and secondary data. Analysis of the data used is multiple linear regression analysis. The results of this study indicate that the aspects of finance, environment, marketing, human resources, entrepreneurial ability and economic aspects have a positive and significant effect on the performance of small and medium enterprises in Barru Regency. The greater the equity, loan capital, the level of profits and capital accumulation, the greater the performance of small and medium enterprises. The better the technology and quality control, the availability of business places, government policies, seasons and infrastructure, the better the performance of small and medium enterprises. The more market demand, the better competing pricing, promotion, distribution channels and marketing areas, the better the performance of small and medium enterprises. The better the level of formal education, leadership, experience in business and the amount of motivation and skills in the performance of small and medium enterprises. The greater the desire for achievement, personal responsibility, management ability and innovation ability, the better the performance of small and medium enterprises. the higher the level of income of the community, the availability of jobs, a business climate and good investment and the better the economic growth, the better the performance of small and medium enterprises.

Research aims: The purpose of this study was to determine the credit distribution level used as working capital assistance for Micro, Small, and Medium Enterprises (MSMEs) during the COVID-19 pandemic.Design/Methodology/Approach: This study used a sample of 8 cities/regencies in East Java. Meanwhile, the Micro, Small, and Medium Enterprises (MSMEs) credit recipients were the population of the sample areas. This research's analysis model was panel data regression (generalized least square) by considering the emergence of heteroscedasticity in cross-section data between regional objects. The control variables outside the COVID-19 were the BI rate, third-party funds (TPF), and inflation.Research findings: This study’s results showed that the COVID-19 pandemic had a significant negative impact only on medium-sized business loans, while micro and small business loans are more resilient. Besides, Micro, Small, and Medium Enterprises (MSMEs) credit was significantly positively influenced by TPF; inflation did not affect credit; the BI rate only negatively affected medium-sized business credit.Theoretical contribution/Originality: Studies on Micro, Small, and Medium Enterprises (MSMEs) credit-related to economic phenomena and monetary policy have been widely carried out. However, the catastrophic virus that causes long-term economic uncertainty and impacts banks and Micro, Small, and Medium Enterprises (MSMEs) still requires in-depth study. Also, this study employed the GLS model that considers heteroscedasticity, which is still rarely used in previous studies.Practitioner/Policy implication: This research can be essential information for the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or OJK) and Bank Indonesia (BI) in policymaking, both regulatory aspects and bank liquidity provision, in stimulating Micro, Small, and Medium Enterprises (MSMEs) credit, especially in the COVID-19 pandemic era.Research limitation/implication: The impact of COVID-19 on Micro, Small, and Medium Enterprises (MSMEs) loans is still classified based on micro, small and medium. It is still not grouped based on the Micro, Small, and Medium Enterprises (MSMEs) business sector in various cities and regencies in East Java. The analysis has not been clustered based on the spatial concentration of the Micro, Small, and Medium Enterprises (MSMEs) recipient areas.

Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the global economy by making a significant contribution to economic growth, job creation and increasing social inclusion. However, many MSMEs face challenges in optimizing their potential due to limited resources and access to financial services. Financial literacy among MSME players can be a fundamental pillar in forming smart and sustainable financial decisions. Financial inclusion provides wider access to financial services, such as banking and insurance, for MSMEs. With strong financial inclusion, MSMEs can overcome financial obstacles and take more measured risks, encourage innovation and stimulate local economic growth. The method used in this research is Systematic Literature Review (SLR) by collecting and analyzing journals related to keywords. Based on the literature study conducted, it was found that the importance of increasing financial literacy is the main key in helping Micro, Small and Medium Enterprises (MSMEs) overcome financial challenges and increase the effectiveness of business decision making. The need for more targeted financial education programs for MSME owners was also highlighted. In addition, supporting financial inclusion by providing wider and easier access to financial services can be a driver of MSME growth. Steps such as simplifying the credit process and integrating digital payment services are considered vital. Research also shows that there is a strong synergy between financial literacy and inclusion, where better financial literacy prepares MSMEs to utilize financial services, while effective financial inclusion facilitates their access to such services. Despite these developments, research highlights gaps in access to education and financial technology, emphasizing the need for more inclusive and holistic efforts to support MSME growth.

Small and medium enterprises (SMEs) are especially susceptible to pandemics. Consequently, resilience and adaptability to shocks from pandemics like COVID-19 are crucial. Nonetheless, although SMEs have strategies to cope with these, there is still a dearth of research on the nature and effectiveness of these coping strategies. Thus, it remains unclear how leadership and governance frameworks reduce SMEs’ vulnerability and increase their resilience to pandemic risk. This academic article provides a systematic literature review on the role of governance and leadership in enhancing the resilience of small and medium enterprises (SMEs) in Ghana. The review explores existing literature on SME resilience, environmental uncertainty, and the impact of governance frameworks. The article also focuses on how leadership practices in the Ghanaian context contribute to building SME resilience in times of crisis, such as the COVID-19 pandemic. The study analysis revealed that there are opportunities for SMEs to adopt better governance and leadership practices that foster long-term resilience. Governance practices, such as formal structures, board diversity, and leadership, enable SMEs to respond to crises and navigate challenging situations. Moreover, leadership styles that prioritize governance procedures, especially transformational leadership, empower SMEs to maintain agility and innovation, thereby securing their survival and growth in a rapidly evolving environment. The review highlights the need for stronger governance frameworks and leadership development programs that equip SME owner-managers with the tools to navigate environmental uncertainties.

This study wanted to know how the application of accounting at the micro small and medium enterprises (MSMEs), especially MSMEs in the town of Bandar Lampung as a first step in establishing research and development activities are appropriate at a time when that will come. The variables that will be seen as the application of accounting in MSMEs are: recording system and reporting for financial transactions, knowledge of micro small and medium businesses (MSMEs) on accounting, knowledge of micro small and medium businesses (MSMEs) about the tax, the use of information technology in business, and business decision-making system. The conclusion that can be generated from research that uses 55 micro small medium enterprises (MSMEs) as a sample of the research are: the micro small and medium businesses (MSMEs), most have not been doing the accounting process as a recording system that produces financial reports. The small micro business medium enterprises (MSMEs) have sufficient knowledge about the concept - general concepts of accounting but does not have sufficient knowledge about accounting process itself. Most of the small and medium businesses (MSMEs) do not have enough knowledge about taxation. the majority of the perpetrators of small and medium enterprises (MSMEs) are not applying information technology in their business field. Most of the small and medium businesses (MSMEs) make operational decisions with a rational business but still make plans only limited in memory just is not translated in the form of documents.  Keywords: Accounting Aplication, Micro Small and Medium Enterprises

This paper presents a systematic literature review of the current state of cloud computing adoption (CC) in small and medium enterprises (SMEs) with the main objective of providing insights into data analysis techniques, CC services being investigated, and further assessing studies and their associated theories/frameworks, publication trends and outlets, geographical distribution and the most important adoption factors over 10 years (2011-2020). Six databases were consulted for a total of 76 articles. The findings indicate that Partial Least Squares Structural Equation Modeling (PLS-SEM) and interpretative analysis were the most frequently used quantitative and qualitative data analysis techniques. Generic CC services were investigated more than specific CC business applications. The number of publications has fluctuated over the last decade, and the vast majority did not incorporate any underlying theory. The Journal of Small Business and Enterprise Development and IEEE conferences proceedings were major publication outlets. Asia recorded the highest number of studies, whereas cost savings is the most important adoption factor. This study contributes to CC research by providing deeper insights into data analysis techniques used, CC services investigated, and other crucial research issues of CC adoption in SMEs to guide future research directions and SMEs' cloud computing implementation.

Aim/Purpose: This study aimed to investigate the impact of innovation management and learning orientation as the mechanisms playing the role of an intermediate relationship between entrepreneurial leadership and organisational performance of small and medium enterprises (SMEs) in Kuwait. Background: SMEs are currently among the principal economic instruments in most industrialised and developing countries. The contribution of SMEs can be viewed from various perspectives primarily related to the crucial role they play in developing entrepreneurial activities, employment generation, and improving innovativeness. Developing countries, including Kuwait and other countries, in the Gulf Cooperation Council (GCC), have recognised the key role played by SMEs as a strong pillar of growth. Consequently, many governments have formulated policies and programmes to facilitate the growth and success of SMEs. Unfortunately, the organisational performance of SMEs in developing countries, particularly in Kuwait, remains below expectations. The lagged growth could be due to a lack of good managerial practices and increasing competition that negatively impact their performance. Numerous researchers discovered the positive effect of entrepreneurial leadership on SMEs’ performance. However, a lack of clarity remains regarding the direct impact of entrepreneurial leadership on SMEs’ performance, especially in developing countries. Therefore, the nexus between entrepreneurial leadership and organisational performance is still indecisive and requires further studies. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather data within a specific period. The data were collected by distributing a survey questionnaire to Kuwaiti SMEs’ owners and Chief Executive Officers (CEOs) via online and on-hand instruments. A total of 384 useable questionnaires were obtained. Moreover, the partial least square-structural equation modelling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: The current study contributed to the existing literature by developing a moderated mediation model integrating entrepreneurial leadership, innovation management, and learning orientation. The study also investigated their effect on the organisational performance of SMEs. The study findings also bridged the existing significant literature gap regarding the role of these variables on SMEs’ performance in developing countries, particularly in Kuwait, due to the dearth of studies linking these variables in this context. Furthermore, this study empirically confirmed the significant effect of innovation management and learning orientation as intermediate variables in strengthening the relationship between entrepreneurial leadership and organisational performance in the settings of Kuwait SMEs, which has not been verified previously. Findings: The study findings showed the beneficial and significant impact of entrepreneurial leadership and innovation management on SME’s organisational performance. The relationship between entrepreneurial leadership and SMEs’ organisational performance is fundamentally mediated by innovation management and moderated by learning orientation. Recommendations for Practitioners: The present study provides valuable insights and information regarding the factors considered by the government, policymakers, SMEs’ stakeholders, and other authorities in the effort to increase the organisational performance level and facilitate the growth of SMEs in Kuwait. SMEs’ owners or CEOs should improve their awareness and knowledge of the importance of entrepreneurial leadership, innovation management, and learning orientation. These variables will have beneficial effects on the performance and assets to achieve success and sustainability if adopted and managed systematically. This study also recommends that SMEs’ entrepreneurs and top management should facilitate supportive culture by creating and maintaining an organisational climate and structure that encourages learning behaviour and innovation mindset among individuals. The initiative will motivate them towards acquiring, sharing, and utilising knowledge and increasing their ability to manage innovation systemically in all production processes to adapt to new technologies, practices, methods, and different circumstances. Recommendation for Researchers: The study findings highlighted the mediating effect of innovation management on the relationship between entrepreneurial leadership (the independent variable) and SMEs’ organisational performance (the dependent variable) and the moderating effect of learning orientation in the same nexus. These relationships were not extensively addressed in SMEs of developing countries and require further validation. Impact on Society: This study aims to influence the management strategies and practices adopted by entrepreneurs and policymakers who work in SMEs in developing countries. The effect will be reflected in the development of their firms and the national economy in general. Future Research: Future research should investigate the conceptual research framework against the backdrop of other developing economies and in other business settings to generalise the results. Future investigation should seek to establish the effect of entrepreneurial leadership style on other mechanisms, such as knowledge management processes, which could function with entrepreneurial leadership to improve SMEs’ performance efficiently. In addition, future studies may include middle and lower-level managers and employees, leading to more positive outcomes.

The purpose of this study is to determine the determinants of MSME Empowerment and what factors determine MSME Empowerment in the Globalization Era. This study uses a descriptive exploratory approach by using an approach to literature review or literature study, which refers to various literatures, such as books, dissertations, scientific journals and the internet. All the descriptions of existing ideas are combined in a single framework of thought. The results of the study can be concluded, From the discussion that has been described, it can be concluded that the determinants of MSME Empowerment are the role of the government in empowering MSMEs in Indonesia which is the driving force for the success of MSMEs in an effort to rise during the pandemic, with one of the main policies being to encourage lending to MSMEs. , such as People's Business Loans, Independent Business Loans, Productive Business Loans and other credit financing. The role of banking in financing Micro, Small and Medium Enterprises (MSMEs) has a very important contribution because MSMEs will be able to develop if they have sufficient capital to run their business. In addition, the factor that determines the empowerment of MSMEs is that the government needs to establish policies for MSMEs that receive credit financing according to a priority scale, then provide guidance and assistance as long as MSMEs use their business loans, facilitate relationships between MSMEs and other parties and provide access to marketing information and ease of marketing. for MSMEs to offer their products or services to be easily sold in the market.