MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) FINANCIAL MANAGEMENT IN INDONESIA AND MALAYSIA: A COMPARISON

The general objective in this community service activity is to assist MSME actors by providing training and practical knowledge of management science in financial management and the use of financial technology which has an impact on the development of Micro, Small and Medium Enterprises (MSMEs). The method used is the method of collecting data and delivering direct material as well as simulations and consultations on financial management and the use of financial technology in the development of Micro, Small and Medium Enterprises (MSMEs) which have an impact on the welfare of the community. The results of this community service activity in the effort to assist and develop MSMEs show that the use of Fintech by MSME actors can facilitate financial transactions such as payment methods for buying and selling products that are already digital, digitally storing funds becomes practical and fast, and also making it easier for MSME actors in seeking funding/business capital. The conclusion of this community service is that MSME actors can better understand and apply simple financial management methods and take advantage of financial technology to achieve prosperity and development of Micro, Small and Medium Enterprises (MSMEs).

This thesis examines the activities of Micro, Small, and Medium Enterprises (MSMEs) in conducting business, the challenges faced by MSMEs in business development, and the forms of collaborative governance implemented in MSMEs in Pananrang Village. This is based on the decline in MSME development and the importance of collaborative governance in MSME development. The main issues in this research are (1) How do MSME actors conduct business? (2) What challenges did MSMEs face in developing their businesses? (3) How was collaborative governance implemented in MSMEs in Pananrang Village?The research method used is qualitative research with a case study approach. The data sources are MSME actors and the Cooperative and Small and Medium Enterprises Agency, as well as the Investment and Integrated One-Stop Service Agency. Data collection tools include interview guidelines, and data collection techniques involve observation, interviews, and documentation. Data validity is tested using triangulation techniques.Research findings: (1) MSME actors in Pananrang Village are classified as micro-businesses with a maximum income of Rp200,000,000 per year. In Pananrang Village, there were 47 businesses, but only 4 types of businesses were based on collaborative governance. (2) The challenges faced by MSME actors in developing their businesses included: (a) Quantity and quality of Human Resources (HR) were insufficient, (b) Limited technology and lack of innovation in products, (c) Marketing management did not meet operational standards and lacked business partners, and (d) Lack of capital for business development. (3) Collaborative governance was carried out by the Cooperative and Small and Medium Enterprises Agency through programs such as (a) Coaching, providing material on how to develop a business, (b) Assistance in finding business partners for MSMEs, (c) Financial assistance, providing capital for business development, and (d) Creating a business climate, providing quick and free business permits for MSMEs. Meanwhile, the Investment and Integrated One-Stop Service Agency had the Close Relations program, which included one-day seminars on business development and financial support for MSMEs in Pinrang Regency. The analysis results showed business development for MSMEs for those who followed collaborative governance procedures. Keywords: Collaborative Governance, Development, Micro, Small, and Medium Enterprises (MSMEs)

This study aims to see the impact of the COVID pandemic on a group of people, namely MSME (Micro, Small and Medium Enterprises) actors. This entrepreneurial sector is known for its flexibility and resilience to withstand all situations and conditions, including during the 1998 monetary crisis. However, during the pandemic, this sector was hit the hardest compared to large companies. This is because the MSME sector in general does not have large savings as part of a precautionary motive. The government actually already has an assistance program for MSMEs affected by COVID. But, of course, MSME (Micro, Small and Medium Enterprises) actors must rise up to help themselves, not only relying on government programs that may have limitations. This study aims to see the strategies of the MSME actors, both economic and social strategies. Researches on the adaptive strategies of economic actors have indeed been carried out frequently. The difference is that the adaptive strategy that will be examined this time is a strategy during the COVID pandemic. Most of the COVID-19 studies have been conducted in the medical or health sector. Because this research was conducted during the pandemic, interviews were conducted through digital technology, namely WA calling or telephone. There were six research subjects who were interviewed, with various product variants produced. Based on the research results, it was found that there are three kinds of adaptation strategies for MSME actors namely: economic strategy, technology strategy and social network strategy.

The reality shows that Micro, Small, and Medium Enterprises (MSMEs) play a very important role in economic growth. Even MSMEs are the only micro institutions that have not been shaken by the monetary crisis that began in 1988. However, as one of the mainstay sectors of society, especially the lower-middle-class economic community, the role of MSMEs has not been maximized, so they have not been able to compete fully and, even worse, many MSMEs have gone out of business or are inactive. Many factors cause the inability of SMEs to compete, among others, due to low innovation and competitiveness, so they have not been able to win competition both in the national and international spheres. The decrease in the number of MSMEs from active to inactive is because these MSMEs are less able to survive in an increasingly fierce competition arena. Only MSMEs that survive are MSMEs that have creations and innovations according to the community’s needs. The inability to create creations and innovations is suspected that most MSME actors have a personality that lacks confidence due to their low managerial ability. If MSME actors have an Internal Locus of Control and high managerial abilities, MSME actors will be more creative and innovative. This research uses a qualitative and quantitative descriptive approach descriptively and inferentially to analyze the LoC on the competitiveness of micro, small and medium enterprises (MSMEs) in Pangkalpinang City with a total sample of 50 MSMEs. The analytical tool used in this research is to use a Likert scale scoring. Multiple linear regression is performed with the competitiveness of MSMEs as the dependent variable and LoC as the independent variable. The research results stated that the Internal Locus of Control (ILoC) of MSME actors in Pangkalpinang City was higher than External Locus of Control (ELoC) and Locus of Control had a significant and positive influence on the competitiveness of MSMEs in Pangkalpinang City.

Kudus Regency is one of the districts that has tourism potential in the field of halal tourism, where elements that support halal tourism include MSMEs, even though halal certification on MSME products is still minimally applied by MSME actors, especially those in halal tourism in Kudus Regency. The lack of knowledge is also one of the reasons why MSME actors and administrative procedures need to be better understood by MSME actors. This study aims to provide an understanding of the urgency of the halal certification movement for MSME actors in the halal tourism sector so that it is expected to create new jobs. This research uses a qualitative approach by interviewing ten people consisting of MSME actors, where the interview emphasizes the importance and understanding of Halal certification in MSMEs. The results of this study show that with Halal certification on MSME products, consumers increasingly trust and get guarantees from these products, so products that have Halal certification increasingly show that they are worthy of a massive market. The government, Halal Certification Companions, and stakeholders are advised to play a vital role in enhancing MSME participants' understanding of halal certificates for MSME products in halal tourism zones, according to this study.

This study discusses financial management in Micro, Small and Medium Enterprises (MSMEs) in Takalar Regency. The main problem of this research is that SMEs do not really understand about good financial management. Where there are 4 (four) indicators in financial management, namely financial planning, recording, reporting, and control. This study aims to find out how the application of financial management is carried out by MSME actors in Takalar Regency. This type of research uses a qualitative research type, with research locations in Takalar Regency. Data collection methods used are observation, interviews and document review. Informants in this study were 10 (ten) MSME’s engaged in the trading sector. The results of this study indicate that MSME actors in Takalar Regency have implemented financial management but have not maximized it. The most widely applied indicators are financial planning, recording and control. Meanwhile, reporting indicators have not been implemented properly. This is due to limited time and human resources and business actors running their own businesses. In addition, MSME’s do not have an accounting background so that knowledge related to financial management is still lacking.

This research discusses financial management in micro, small and medium enterprises (MSMEs) in North Luwu Regency. The main problem in this research is that MSMEs do not really understand good financial management. Where there are 4 (four) indicators in financial management, namely financial planning, recording, reporting and controlling. This research aims to find out how financial management is implemented by MSMEs in North Luwu Regency. This type of research uses qualitative research. The data collection methods used are observation, interviews and documentation. The informants in this research were 10 (ten) MSME actors operating in the trade and services sector. The results of this research show that the majority of MSME actors in North Luwu Regency have implemented financial planning well, even though financial recording and reporting is still done in a simple way. MSMEs generally do not have complete financial reports and awareness of the importance of financial control is still low. This research recommends training and counseling from the government to increase MSME actors' understanding of effective financial management, in order to encourage the sustainability and growth of their businesses.

Micro, Small, and Medium Enterprises (MSMEs) are crucial to Indonesia's economy, contributing approximately 60.5% to the Gross Domestic Product (GDP) and employing about 96.9% of the national workforce. Despite the large number of MSMEs and their potential GDP contribution, there is still room for improvement in exports. The government has taken various measures to support MSME development, including policies that encourage digital business growth and education-based training for MSMEs. In West Kalimantan Province (Kalbar), MSMEs play a vital role in regional economic development. Despite their potential, they face several challenges such as access to capital, financial management, and market access. The regional government and the Bank of West Kalimantan have collaborated to revitalize MSMEs post-COVID-19 through various programs, credit schemes, and educational initiatives or training sessions. This study employs both qualitative and quantitative methods with a case study approach. The research results indicate that MSMEs significantly contribute to West Kalimantan's economic development, despite being impacted by the pandemic. The internal and external revitalization strategies implemented by Bank Kalbar have assisted MSMEs in recovery and adapting to digital-based business models. The study concludes that MSMEs in West Kalimantan have the potential to continue growing and thriving as independent economic entities in a digital-based business environment. The revitalization of MSMEs is a result of collaboration between MSME actors, the government, and banking institutions to achieve regional economic stability and recovery.

Micro, Small and Medium Enterprises (MSMEs) have a very important role for the economy in Indonesia. MSMEs are found in every region, for example traders in traditional markets, food stalls, craftsmen, home businesses, street vendors. There are 9 MSME business fields, namely Micro Enterprises, Small Enterprises and Medium Enterprises in Tomo District, Sumedang Regency, West Java, under the coordination of Bumdes and BumdesMa, which are divided into three categories of micro, small and medium enterprises. The purpose of implementing this PKM is to accelerate the process of developing digital marketing and the practice of preparing Android-based PSAK ETAP UKM financial reports; Help create access for the creation of new entrepreneurs who implement digital marketing and Android-based bookkeeping. The results of PKM through training, namely MSME participants who do not understand how to do marketing through digital marketing / e-Commerce, there are still many MSME actors in archiving and recording transactions in making financial reports, both manually and digitally. With this PKM activity, MSME actors have a strong interest and desire to learn how to implement marketing through online media/digital marketing, as well as make it easy for MSME actors to find out the performance of MSME businesses through BUMDes/BUMDesma for financial reports made digitally based on Android.

The Micro, Small and Medium Enterprises (MSME) sector plays a significant role in advancing Indonesia's economic development, which is founded on the idea of people's economic development. Even for tiny organizations, financial management analysis can have a significant impact on overall business success. However, the majority of small firms lack expertise of financial management, particularly financial management, and do not recognize the value of bookkeeping and documentation for maintaining business continuity. MSME entrepreneurs think that really putting financial management into practice is more crucial. Therefore, the goal of this study is to investigate the financial management practices used by SMEs. This study employs descriptive qualitative research techniques to conduct a field survey. The small and medium-sized businesses in Jambi City's Alam Barajo District are the focus of this study. ways for gathering data, including documentation, interviews, and observation. According to the survey's findings, there is still a lack of knowledge among MSME actors in Jambi City's Alam Barajo District regarding financial management. The actors in MSME organizations' ignorance is playing a bigger role in the implementation of this financial management. When it comes to financial management, MSME players are seen using financial management. The four theoretical indicators of financial management are control, recording, reporting, and budget use. The most typical method employed by MSME actors is budget tracking. Reporting and management metrics are infrequently employed by MSME owners.

Micro, Small and Medium Enterprises (MSMEs) at South Kalimantanare a positive contributor to economic growth. It was noted that this year the role of MSMEs reached up to 98%. Based on data for 2020 the number of MSMEs in South Kalimantan has reached more than 33,700. By absorbing a workforce of up to 60,000 people. Credit disbursement is planned to develop MSMEs. One of the requirements for applying for additional capital for a business is a financial report. UMKM Sukses Banua is a community of micro, small and medium enterprises that houses creative entrepreneurs. Members numbered more than 200 members. MSME actors who are members of this association have not kept records or bookkeeping that refer to SAK EMKM-based accounting.The goal to be achieved in this program is to develop the skills of MSME traders or actors so that they have the ability to make SAK EMKM - based accounting practices that will be applied to their businesses, so it is hoped that these MSME actors can have an understanding of the financial position of their businesses and improve their business performance based on financial reports. his efforts. The method used in implementing an understanding of accounting based on SAK EMKM is Participatory Based Learning, namely involvement in the planning, implementation, monitoring and evaluation stages of programs / activities by the proposing team. At the end of the program partners are able to understand bookkeeping, recording and financial reporting in accordance with SAK EMKM - based accounting standards. In the end, with the existence of these financial reporting standards, of course, they can become a simple reference and are more easily accepted by a wider circle of entrepreneurs.

Indonesia is a country with a relatively large level of MSMEs development. The Micro, Small, and Medium Enterprises (MSMEs) sector itself has a crucial role and is the main pillar of a country’s progress. Ironically, this rapid development is not followed by the compliance of MSMEs taxpayer. Based on the survey results by the Directorate General of Taxes of the Indonesian Ministry of Finance in 2019, the contribution of MSMEs final income tax was only IDR 7.5 trillion or only around 1.1% of the total income tax revenue in the same year 711.2 trillion. Thus, it is important to explore the main factors causing (non)compliance of MSMEs in paying their taxes. This research examined the effect of perceptions of corruption and trust in the government on MSMEs’ taxpayer compliance with perceived justice as a moderating variable. This study used a questionnaire survey design with hypothesis testing. The samples included MSMEs actors who had been operating for more than one year and MSMEs actors who already had a taxpayer identification number. The results uncovered that the perceptions of corruption negatively affected MSMEs’ taxpayer compliance, while trust in the government positively affected MSMEs’ taxpayer compliance. The perceived justice could not moderate the effect of perceptions of corruption on MSMEs’ taxpayer compliance. However, the perceived justice strengthened the influence of trust in the government on MSMEs’ taxpayer compliance. This study’s results are additional discussion toward theory and literature related to taxpayer compliance. Specifically, this study proposes a tax compliance model by testing perceived justice as a moderation variable.

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in supporting regional economic growth, including in Pringsewu Regency. However, this sector is vulnerable to various financial risks such as income fluctuations, limited access to financing, and low financial literacy. This study aims to analyze the financial risk management practices implemented by MSME actors and their contribution to the stability of their businesses. The research approach used is descriptive qualitative with a case study method on several MSMEs in Pringsewu Regency. Data collection techniques were carried out through in-depth interviews, observation, and documentation. The results of the study show that Financial risk management plays a crucial role in maintaining the sustainability and resilience of Micro, Small, and Medium Enterprises (MSMEs), especially amidst fluctuating economic conditions. The main findings of this study indicate that the majority of MSMEs in Pringsewu face significant financial risks, with liquidity risk (70%) and credit risk (50%) being the primary challenges. However, only a small portion of MSME actors have implemented financial risk management strategies in a systematic manner. The adoption of practices such as routine cash flow recording, the use of emergency funds, and income diversification has been proven to enhance business stability by up to 85% and crisis resilience by up to 90% among MSMEs that actively apply risk management. Furthermore, MSMEs with strong financial literacy demonstrate greater access to formal financing and are better equipped to make rational financial decisions. The use of digital financial technologies has also begun to contribute positively to the efficiency of financial management and business transparency.

The Covid-19 pandemic has had an impact on various economic sectors in Indonesia, and consequently on Micro, Small, and Medium Enterprises (MSMEs) which have faced a decline in sales figures. The pandemic has forced MSME actors to reorganize their business strategies. Several MSMEs that could survive the impact of Covid-19 in Banyumas have implemented Technology-Based Financial Management which includes the use of software in managing their financial data so that MSME actors are able to calculate, manage, budget, predict expenses and profits to be achieved. The long-term goal of this research is to enrich the development of science, particularly, to examine bounded theory as the dominant factor influencing the intention of MSME actors in using financial software. Further, this research analyzes whether the financial software developed by the research team could help the process of MSME operational activities and has an impact on the sustainability of MSMEs during the Covid-19 Pandemic. Data collection for this study was carried out by distributing questionnaires through online media to MSME actors in the Banyumas Regency who were respondents and a direct approach to MSMEs concerning the use of financial software. The random sampling technique has been applied for this research, meanwhile, for data analysis the Statistical Product and Service Solution (SPSS), version 22.0, has been used. The expected results from this research may help to analyze and provide empirical evidence that bounded theory is the dominant factor influencing the intention of MSME actors in using financial software. The output of this paper can contribute to knowledge, especially regarding the implementation of financial software and theory development.

Micro, small, and medium enterprises (MSMEs) are important assets for the economic sustainability in Indonesia. The sector has an important role in encouraging economic growth and supporting the creation of new jobs for the Indonesian population. When Indonesia was facing the economic crisis situation, MSMEs remained and stood strong. In fact, the data shows an increasing number of MSMEs. Despite their contribution to Indonesia’s economies, it turns out that MSMEs still have very basic problems. The results of previous research indicate that MSMEs still face various problems related to financial management caused by a lack of managerial and financial knowledge. There are many cash flow problems faced by MSMEs that are in line with the lack of knowledge and understanding of financial management by MSME actors. This indicates that owners or managers of MSMEs need to have sufficient financial literacy. Understanding of financial literacy is paramount for business actors and can be utilized for instance to prepare financial statements that can be used to obtain funds. In the context of MSMEs, owners or managers need to have financial knowledge related to financial access and also for a company business to grow well. This study aims to analyze the financial literacy of owners or managers and its impact on access to finance and growth of the MSMEs in West Java, Indonesia. The samples of this research are MSMEs’ owners or managers of various business types. Data concerning Financial Literacy, Access to Finance, and Growth of the MSMEs are obtained through questionnaires. The obtained data were processed using Structural Equation Modeling to ensure the relationships between research variables. The results of the research analysis show depictions of the financial literacy, financial access, and growth of MSMEs in West Java, Indonesia. The results of the study support the previous studies and theories that Financial Literacy has a positive effect on Access to Finance and Growth of MSMEs, and Access to Finance also has a positive effect on Growth of MSMEs.