Abstract
The existence of Micro, Small, and Medium enterprises in Indonesia is cannot be underestimated. Moreover, it has contributed to the growth of economy. The government, especially Regional Government has established several efforts in developing the influence of Regional Government’s policies on entrepreneurship. Thus, this research has purpose to know the influence of Regional Government’s policies on entrepreneurship to reduce poverty. Afterward, this research is conducted in two regions in Indonesia which are Pamekasan and Tulungagung. The research used mix method approach between qualitative and quantitative. The results show that the Regional Government put more emphasis on three things. First, capital assistance is considered important because the micro industry is more based on families whose capital is limited. Second, marketing assistance is expected to expand the market reach of the products produced. Capital assistance is carried out with various schemes. Third, the training assistance as well as the fourth assistance for Industrial and Trade (TPL) extension workers. Yet, it found that several assistances provided by the government are insignificant. Hence, the right strategy in developing small industries in Pemekasan and Tulungagung Regencies is to increase attention to policies in terms of capital assistance and capital assistance which still face many obstacles. The obstacles faced are the limited budget for increasing capital assistance and marketing assistance. The ease of access to business assistance sources and the opportunity to participate in product promotion exhibitions is less affected by entrepreneurs. The right strategy in developing small industries in regions under research is to increase attention to policies in terms of capital assistance which still face many obstacles. JEL Classification: D6, O4, Q0
Highlights
Small, and medium enterprises in Indonesia is a contributor of economic growth
Morrison (2002) as researcher and observer of the small enterprises development stated that small businesses are well recognized and acknowledged worldwide as vital and significant contributors to economic development, job creation, and the general health and welfare of economics, both nationally and internationally
The similar statement has uttered by Mazzarol (2000); Storey (2016) in which small business is a booster for economic growth, innovation incubator and solution to reduce the unemployment in millennium era
Summary
Small, and medium enterprises in Indonesia is a contributor of economic growth. Morrison (2002) as researcher and observer of the small enterprises development stated that small businesses are well recognized and acknowledged worldwide as vital and significant contributors to economic development, job creation, and the general health and welfare of economics, both nationally and internationally. In the implementation of micro and small industry, there are several obstacles face by Micro, Small, and Medium Enterprises, including: 1) Modal Issue: Some industries still depend on the support modal of the government; 2) Marketing Issue: Less coordination which causes bad competition between the similar industries; information to market the product is considered to be less as well; 3) Raw Material Issue: the supply and the price of raw material is inadequate and fluctuates; the low quality of raw material; the payment system or raw material done by cash, while many payment sales are done by credit; the price of raw material is high. Kobia and Sikalieh (2010) tried to give their statement about entrepreneurship as the process whereby an individual or a group of individual use organized effort and mean to pursue opportunities to create value and grow by fulfilling wants and needs through innovation and uniqueness In this case, entrepreneur acknowledged as dynamic process and vision, as well as creative development. He stated that besides as inventor, the entrepreneur has courage to take a risk moderately, tolerance to the ambiguity and uncertainty and so forth, as stated in the table 1:
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