Abstract

Purpose — This research aims to find out and explain the implementation of policies for the development of micro, small and medium enterprises (MSMEs) in improving business competitiveness in Kendari City and to describe the effectiveness of the policies for developing micro, small and medium enterprises (MSMEs) in increasing business competitiveness. Design/methodology/approach — This research uses a narrative qualitative approach. Data collection techniques used are interviews, in-depth observation, and Snowball sampling. Findings — The results of the research found that the implementation of policies realized through training programs in the effort to develop micro, small and medium enterprises (MSMEs) to have competitiveness was not maximized due to the lack of follow-up (evaluation) of the programs that had been implemented, the existence of MSMEs that have not gained understanding after participating in training such as financial report management, inadequate human resources (HR), no special expertise to conduct financial management assistance, and the absence of product service center. Practical Implications — The effectiveness of the policies will determine the improvement of business competitiveness for micro, small and medium enterprises (MSMEs). Originality/value — This research presents the case of the implementation of policies for the development of micro, small, and medium enterprises (MSMEs) in Kendari City, which might impact the improvement of the workers’ business competitiveness.

Highlights

  • Micro, small and medium enterprises (MSMEs) are an important sector in realizing national economic development

  • The researcher seeks to describe, describe and interpret the problem and draw conclusions from the problem regarding the implementation of the policy of developing micro, small and medium enterprises (MSMEs) in increasing business competitiveness in Kendari City

  • This condition is an opportunity for the growth and development of business actors, especially micro, small and medium enterprises (MSMEs), which until now has recorded 10 862 business units in micro, small and medium scale

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Summary

Introduction

Small and medium enterprises (MSMEs) are an important sector in realizing national economic development. The role of micro, small and medium enterprises (MSMEs) is very significant in creating employment opportunities and the added value has proven that MSMEs are able to provide social benefits that is reducing income inequality (Nugent and Yhee, 2002). Even though its establishment is based on one's initiative, export micro, small and medium enterprises (MSMEs) contribute to the increase and as a subcontractor that provides various inputs for large scale businesses as well as sources of innovation (Sulistyastuti, 2004). Urata (2000) mentions that micro, small and medium enterprises (MSMEs) play several important roles in Indonesia, namely: (1) MSMEs major players in economic activity in Indonesia, (2) Providers of employment opportunities, (3) Important players in local economic development and community development, (4) Market creator and innovation through its flexibility and sensitivity as well as dynamic linkages between company activities, and (5).

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