Abstract

The purpose of this study is to determine what factors can improve the competitiveness of SMEs and how big those factors affect the improvement of competitiveness of SMEs and what strategies should be done by SMEs in the face of ASEAN economics for the business actors of SMEs in Indonesia in particular in Cirebon district can compete with foreign business actors in terms of products and trained human resources so as not to be a spectator in the State itself in global competition. The method used is a survey research methods and data analysis tool used is path analysis. The population in this study is SMEs that run business activities in Cirebon regency as much as 10.975 SMEs. The sampling technique is simple random sampling, the sample size in this study as many as 100 SMEs. The research instrument used is the questionnaire. The results of the research note that funding variables, entrepreneurship training, business assistance and partnership have an effect on competitiveness in facing ASEAN economics. Among the variables that have the most influence on competitiveness are partnerships, while the variables affecting the ASEAN economy are competitiveness variables.

Highlights

  • ASEAN, which groups 10 countries, namely Indonesia, Thailand, Malaysia, Singapore, Philippines, Brunei Darussalam, Vie tnam, Laos, Myanmar and Cambodia have agreed to speed up the establishment of the ASEAN community by 2015

  • SMEs can reduce the economic disparities of the Indonesian population, because most MSMEs are in the country side and the managers are the lower middle class, so that with the expected expenditure the percentage of the poor in Indonesia can be reduced as the economic crisis that occurred in 1997-1998 in the Asian region that SMEs is able to sustainthe people's economy and contribute in reducing unemployment when many large industries are out of business

  • The results showed that funding had a positive direct and significant influence on the competitiveness of 1.26 = 12.6% and funding influenced the ASEAN economy by 0.210 = 21%, while through the competitiveness of 0.068 = 6.8%

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Summary

Introduction

ASEAN, which groups 10 countries, namely Indonesia, Thailand, Malaysia, Singapore, Philippines, Brunei Darussalam, Vie tnam, Laos, Myanmar and Cambodia have agreed to speed up the establishment of the ASEAN community by 2015. ASEAN Economic Community (ASEAN Economic Community / AEC) in 2015, an ak directed to the formation of a regional economic integration by reducing trade transaction costs, improve trade and business facilities, as well as gkatkan menin the competitiveness of the SMEs sector. SMEs can reduce the economic disparities of the Indonesian population, because most MSMEs are in the country side and the managers are the lower middle class, so that with the expected expenditure the percentage of the poor in Indonesia can be reduced as the economic crisis that occurred in 1997-1998 in the Asian region that SMEs is able to sustainthe people's economy and contribute in reducing unemployment when many large industries are out of business. If SMEs financing is well distributed, it will equalize the regional income and increase the local currency turnover

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