Medium Enterprises Research Articles

ANALYSIS OF THE EFFECT OF IMPLEMENTING A DIGITAL TECHNOLOGY-BASED ACCOUNTING SYSTEM ON THE FINANCIAL PERFORMANCE OF MSME’S IN INDONESIA

The primary objective of this study is to examine the impact of introducing a digital technology-driven accounting system on the financial outcomes of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. In today's digital age, integrating technology into accounting systems plays a crucial role in enhancing the efficiency and transparency of financial reporting in MSMEs. The research employs a quantitative approach, utilizing a survey method to gather data from 150 MSMEs operating across various industries. Through the analysis of data using multiple linear regression, the study aims to assess the correlation between the implementation of a digital accounting system and financial performance, as measured by metrics such as profitability, cost effectiveness, and liquidity. The findings of this study reveal a positive and significant impact of incorporating a digital technology-based accounting system on the financial performance of MSMEs. The results suggest that MSMEs that embrace accounting technology demonstrate superior financial performance in comparison to those that adhere to traditional approaches. Consequently, this research imparts practical implications for MSME operators, encouraging them to actively adopt digital technology as a means to enhance financial performance and gain a competitive edge in the market.

PENGEMBANGAN USAHA PADA UMKM YU MIN BATIK & BUTIK DESA SIDOREJO KECAMATAN COMAL KABUPATEN PEMALANG

<table width="576" border="1" cellspacing="0" cellpadding="0"><tbody><tr><td width="402"><p>The Micro, Small and Medium Enterprises that are the object are the UMKM Yu Min Batik & Boutique owned by Mrs. Siti Aminah which is located in Sidorejo Village, Comal District, Pemalang Regency. This MSME operates in the field of clothing and modified batik cloth in Pemalang. The aim of implementing this activity is to develop business, good financial management and production performance. The business assistance provided includes marketing aspects. The efforts made by the accompanying team aim to promote Yu Min Batik & Boutique products through MSME activities such as bazaars and catalog content on online social media. This is due to increasingly sophisticated technological developments and seeing many entrepreneurs, especially MSMEs, promoting their businesses through online social media. The aim is to introduce and attract the interest of potential customers by understanding the individual characteristics of consumers so that the products sold will match their wishes.</p><p>The assistance method used is carrying out several programs such as making banners, making simple bookkeeping, Google maps, participating in MSME bazaar activities, making direction boards, making organizational structures, business profiles, and creating social media (Instagram). After analyzing and applying the program to Yu Min Batik products, it produced a positive impact on MSME owners. Such as introducing products through promotions on social media and placing banners, organizational structures, understanding simple bookkeeping, business profiles, and installing direction boards to fulfill product requirements to support promotions so that people have more confidence in the products they want to buy.<strong></strong></p></td></tr></tbody></table>

THE IMPACT OF MICRO FINANCE BANK ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN KANO METROPOLITAN

The main objective of the study was to determine the effect of microfinance services on the performance of Small and medium enterprises in Kano metropolis, Nigeria. The populations of the study consist of the 79328 SMEs in Kano metropolis according to Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the national database of all registered SMEs in Kano state as released in the 2021 report with a sample size of 379 respondents. Valid responses were analyzed using SPSS version 20 applications. The study concluded that of saving service, loan service and training service have a positive and significant effect on the performance of SMEs in Kano metropolis. The study recommended that Microfinance Institutions should sensitize SMEs owners on the benefits of saving, they should revise the loan terms given to their borrowers and ensure that they are favorable for accessing loans and also train SMEs in accessing, borrowing and utilization of loans received from MFIs.

Tradisi Tebokan dalam Perspektif Pengembangan Usaha Mikro Kecil Menengah (UMKM) Masyarakat Kaliputu Kota Kudus

The tradition of Tebokan in Kaliputu Village, Kudus, is a local cultural heritage that strengthens community identity and plays an important role in economic development through the involvement of Micro, Small and Medium Enterprises (MSMEs). This annual event, which coincides with the celebration of 1 Muharram, combines religious values and local culture with a procession of gunungan jenang that symbolizes prosperity. This research uses a descriptive qualitative approach with data collection techniques in the form of interviews, documentation, and literature studies. The results showed that Tebokan Tradition is not only a cultural ritual, but also serves as a promotional strategy that supports the growth of jenang MSMEs. Government support and synergy between MSME players and the local community have increased the popularity of jenang as a local superior product, while strengthening the village economy. Despite facing obstacles, such as limited budget and community participation, this tradition still has great potential to grow through cross-sector collaboration. Through the preservation of the Tebokan Tradition, Kaliputu Village not only maintains its cultural heritage but also strengthens economic resilience and enriches the social life of the community.

Analisis model kebijakan program penyaluran “KUR” dalam rangka meningkatkan perilaku kepatuhan wajib pajak pelaku “UMKM”

The Micro, Small, and Medium Enterprises (MSMEs) sector has long been a significant driver of Indonesia's economy, drawing considerable attention from the government. According to the National Medium-Term Development Plan (RPJMN), various strategic measures have been implemented to promote the growth and resilience of MSMEs as a means to enhance national economic independence. However, despite their substantial economic contribution, MSMEs' tax compliance remains low, as reflected in their minimal contribution to tax revenue. The small contribution is an indication that the level of compliance of MSMEs actors in fulfilling their tax obligations is still very low. This research was conducted using a qualitative approach and began by analyzing and evaluating the policy of the People's Business Credit (KUR) distribution program in relation to tax aspects. The analysis and evaluation were based on data sourced from literature studies and interviews with relevant resource persons from the point of view of technical feasibility, economic and financial possibility, political viability, and administrative operability. The results show that the existing policy has not fully accommodated taxation aspects. This is unfortunate considering that the KUR interest subsidy provided by the government to MSMEs actors is financed by the State Budget (APBN), which is mostly sourced from taxes. Furthermore, the study proposes policy model to encourage the development of the MSMEs actors.

Exploring small and medium enterprise performance through dynamic capability perspective

Background: Small and medium enterprises (SMEs) are crucial to both global and national economies. They create jobs, boost competitiveness and drive economic growth. In the digital age, SMEs have increased opportunities to expand, enhance their capabilities and compete effectively.Aim: This research explores how environmentally conscious SMEs improve performance using dynamic capabilities (DCs) approach. It specifically examines how e-commerce and management capabilities contribute to SME performance in the Indonesian culinary sector and highlights the role of strategic orientation in this study.Setting: The study focusses on SMEs in the culinary sub-sector located in West Java, DKI Jakarta, and Banten provinces in Indonesia. These regions were selected because of their vibrant culinary industries and the significant role SMEs play in the local economy and gross domestic product (GDP).Methods: A quantitative analysis was conducted using online surveys via Google Forms, collecting 236 responses. The data were analysed with Partial Least Squares Structural Equation Modeling (PLS-SEM) using Smart PLS 3.0 software.Results: Four hypotheses about DCs and SME performance were tested, with three being accepted. The study found that DCs alone do not directly enhance SME performance.Conclusion: The study highlights the importance of strategic orientation in mediating DCs with SME performance. In the digital era, aligning goals with market needs helps SMEs use their DCs more effectively, adapt to changes, innovate and grow sustainably.Contribution: This research contributes to the literature on DCs and strategic management, offering insights into improving SME performance in Indonesia.

ANALYSIS OF MARKETING CAPABILITIES, COMPETITIVE ADVANTAGE AND ORGANIZATIONAL CULTURE IN IMPROVING SME PERFORMANCE(SMALL AND MEDIUM ENTERPRISES)

Small and Medium Enterprises (SMEs) face significant challenges in maintaining performance amidst increasingly tight market competition, especially in utilizing marketing capabilities, competitive advantages, and organizational culture. This study aims to explore the impact of investment in training and technology, participation in industry conferences, and collaboration with technology partners on SME performance. Qualitative research methods were used, including in-depth interviews and thematic analysis, to identify key factors influencing the success of these strategies. The results show that investments in training and technology significantly increase employee competency and technology adoption, while participation in technology conferences and collaborations expands innovation opportunities and market access. The implications of these findings underscore the importance of an integrative approach that combines training, technology and strategic partnerships to enhance the competitiveness and long-term success of SMEs. This research provides new contributions to the SME management literature as well as practical recommendations for industry players and policy makers.

Perancangan Value Proposition Canvas untuk Produk Indibiz PT Telkom

This Indibiz is a digital service aimed at micro, small, and medium enterprises (MSMEs) in Indonesia. This service provides consistent and high-quality internet connectivity to support various MSME businesses. Indibiz is designed to offer affordable internet, helping to reduce operational costs and boost MSME productivity in the digital era. However, over the past year, Indibiz has not met its sales targets. The main cause is that Indibiz has yet to fully meet the desired customer profile. To address this, the author designed a Value Proposition Canvas by collecting data on Indibiz's services, customer profiles, and competitor products through observation, literature review, and interviews with 10 MSMEs. These data were used to create a customer profile and value map for Indibiz's products. A strategy canvas analysis and ERRC framework were applied to develop a new Value Proposition Canvas. The proposed solution includes adding an all-in-one MSME digitalization package, bundling digital marketing services, and offering a sales guarantee for each digitalization service purchase.

Penentuan Strategi Pegembangan UKM Tempe Pak Fadli Menggunakan Metode Analisis SWOT dan Boston Consulting Group (BCG)

Micro, small, and medium enterprises (MSMEs) are an important part of the Indonesian economy to improve people's welfare. Pak Fadli's Tempe UKM located in Parerejo Village, Purwodadi District, faces the problem of fierce competition in the tempeh industry and the lack of information obtained by business actors regarding modern technology in the marketing system. Using SWOT Analysis and BCG Matrix, this study aims to find out internal and external factors and what strategies can be used for the growth of Mr. Fadli's tempe business. The results showed using a SWOT Analysis that Pak Fadli's Tempe SMEs had a higher total strength score (4.08) than a total weakness score (3.17), which placed him in Quadrant I. This shows that Pak Fadli's Tempe SMEs should use all their strengths to take advantage of the best opportunities. According to Matrix BCG's calculations, Pak Fadli's Tempe SMEs are in Quadrant III (Cash Cows) with a total market share value of 1.03 and a market growth value of 2.4%. Because it has a large market share but is in a slow-growing sector. Increasing market share and expanding distribution networks is one strategy that can be used. With this research, it is hoped that it can provide recommendations for development strategies and the right marketing strategy for Pak Fadli Tempe SMEs to be able to compete with their competitors.

Study On the Factors Affecting the Audit Fees of Small and Medium Enterprises in Vietnam

The competitive pressure within the group of domestic audit firms is becoming increasingly intense, and pricing is considered one of the most effective competitive tools. This also stems from the fact that many small businesses tend to prioritize low costs when selecting an audit firm. Through a survey conducted on 70 companies, the author utilized SPSS 26 software to analyze the data and identified five factors. The results from the correlation test between two variables and the multivariate linear regression model both indicated that for small and medium-sized enterprises in Vietnam, two factors significantly impact the audit fees for client companies: the size of the audited company and the reputation of the auditing firm.

The Effects of Loadshedding on Small and Medium South African Enterprises Using Statistical Analysis

The Effects of Loadshedding on Small and Medium South African Enterprises Using Statistical Analysis

ANALYTICAL EVALUATION OF THE EFFECTIVENESS OF EQUITY MANAGEMENT IN AGRICULTURAL, FORESTRY AND FISHERY ENTERPRISES IN UKRAINE

The purpose of the research is to generalize the theoretical and methodological aspects and implementation an analytical evaluation of the effectiveness of the management of equity of agricultural, forestry and fishery enterprises of Ukraine using the data of official statistics on large, medium and small enterprises for ten years (2013-2022) as a basis for directing analysis results for the further search for reserves to improve the efficiency of equity management. Methodology. The basis of the research methodology is a dialectical approach, an analysis of data on the composition and structure of equity capital of agricultural, forestry and fishing enterprises of Ukraine for the period from 2013 to 2022 with the division of enterprises into large, medium and small using official statistical information, published on the website of the State Statistics Service of Ukraine. The results of the research showed that in the period from 2013 until 2022, the largest increase in the equity capital of agricultural, forestry and fishing enterprises of Ukraine was observed at the end of 2015 compared to the end of 2014 due to the simultaneous increase in the value of the indicator at enterprises of different sizes. In the structure of equity capital, the share of retained earnings (uncovered loss) was the most significant. In the vast majority of the research years, at average and small enterprises, cash revenue exceeded the amount of equity capital, while at large enterprises, from 2016 to 2022, equity capital made less than one turnover per year. As the calculations showed, large enterprises in the field of agriculture, forestry and fisheries of Ukraine do not properly take advantage of the possibilities of the influence of the scale of production on the formation of indicators of the efficiency of the use of equity. Practical implications. The practical significance of the obtained results lies in their focus on confirming the expediency of the further search for reserves to increase the efficiency of the use of equity, first of all, by large enterprises in the field of agriculture, forestry and fisheries of Ukraine. Value / Originality. The results of the conducted research serve as the basis for further in-depth analysis and search for reserves to increase the efficiency of equity management at different sized of business entities.

A Political Perspective of the Law in the Copyright Law on Investment in Micro, Small and Medium Enterprises Umkm

Economic growth is based on a healthy and solid investment cycle, especially for micro and small entrepreneurs. In this case, regulations related to investment in micro and small businesses do not fully reflect the equal relationship between medium and large business stakeholders and micro and small businesses. In preparing this article, the author used a normative juridical method that requires accurate data to be able to analyze existing legal problems, both in the form of primary data and secondary data. This research finds problems related to what factors are needed by the government to develop MSE investment from a progressive legal political perspective. This research uses a literature review method with a normative legal approach to statutory regulations. Based on this analysis, to increase the competitiveness of Micro and Small Enterprises in the implementation of Law Number 11 of 2020 concerning Job Creation from a political-legal perspective, an innovative government strategy is needed. This can be done by increasing the morality of Business Actors in accordance with the values of the Fifth Principle of Pancasila. In increasing the competitiveness of MSEs in the Legal Politics of the Job Creation Law, there needs to be a progressive Government strategy, namely by fostering greater morality of business actors, as mandated in the Principles. fifth. This can be achieved by recognizing progressive factors in the Government, namely: 1) Stabilizers; 2) Facilitator; 3) Regulators; and 4) Catalyst. This will accelerate the growth of Micro and Small Businesses efficiently and competitively without relying on the government on a large scale.

Cyber entrepreneurship and employment generation of small and medium enterprises in south-east Nigeria

The study evaluated influence of cyber entrepreneurship on employment generation of Small and Medium Enterprises in South-East Nigeria. Specifically, the study sought to: ascertain the effect of selling of digital information product on job creation of Small and Medium Enterprises and examine the effect of selling of physical product on employment generation of Small and Medium Enterprises. The study adopted descriptive research design. The study area was South-east Nigeria. Research design of the study was questionnaire survey research. The sample size of 387 respondents was taken from population of 13,455 staff among 204 small and medium enterprises (SMEs) operated in South-east Nigeria. The selected SMEs under study were as follows: Rokana Industries Ltd. Umualum- Nekede; Cutix Plc Umuanuka, Otolo, Nnewi; Juhel Nigeria Ltd Nkwubor Rd. Emene; Mikko Plastics Ind. Ltd Umuocham, Aba and Eze-Rome Oil Palm Abakaliki Ebonyi State. The research question were answered with simple percentage, mean and deviation while hypotheses were tested with single regression. The empirical results show that selling of digital information product has significant effect on job creation of Small and Medium Enterprises in South-East Nigeria (t-statistic; 6.484; P-value; 0.000 < Sig-value; 0.05) and selling of physical products have significant effect employment generation of Small and Medium Enterprises in South-East Nigeria (t-statistic; 11. 826; P-value; 0.000 < Sig-value; 0.05). The study recommended that government and organizations should as a way of empowerment, train and equip youths with the necessary skills and facilities that will aid their involvement in online application services.

Building a Culture of Compliance: The Influence of Tax Socialization and Inclusion on Indonesian Micro, Small, and Medium Enterprises (MSMEs) Taxpayers

Taxes serve as the cornerstone of any nation's economic framework, functioning as both a regulatory mechanism and a primary source of government revenue. They are indispensable for managing taxpayer behavior, ensuring a steady stream of state income, and financing essential public services and infrastructure development. In Indonesia, the compliance of micro, small, and medium enterprises (MSMEs) is pivotal to the nation's fiscal well-being. This study delves into the factors that influence MSME taxpayer compliance, specifically focusing on the role of tax socialization, tax inclusion, and the involvement of tax volunteers. A quantitative research approach was adopted, involving the distribution of questionnaires to MSME taxpayers in Indonesia. The data collected was then analyzed using SPSS software to test the hypotheses regarding the impact of tax socialization, tax inclusion, and tax volunteers on taxpayer compliance. The findings of this study reveal that tax socialization and tax inclusion positively influence the level of tax compliance among Indonesian MSME taxpayers. Furthermore, the involvement of tax volunteers also has a positive impact on enhancing taxpayer compliance. This study underscores the importance of tax socialization and tax inclusion in fostering a culture of compliance among MSMEs in Indonesia. The positive role of tax volunteers in assisting taxpayers and promoting compliance is also highlighted. These findings have significant implications for tax authorities in their efforts to improve tax compliance rates and enhance revenue collection.

The Effect of Financial Literacy on Financial Behavior of Micro, Small and Medium Enterprises (SMEs) in Ulugawo District, Nias Regency

Low financial literacy has significant implications, including restricted access to financial institutions and mismanagement of money and wealth. A common consequence of low financial literacy is the limited access to financial services, often restricted to banks. This issue is particularly prevalent among Micro, Small, and Medium Enterprises (MSMEs), where poor financial literacy hinders both business growth and economic development. Many individuals lack the financial knowledge necessary to manage investments, pay bills on time, and maintain a budget, all of which are essential for sound financial management. In the case of MSME actors in Ulugawo sub-district, observations reveal that many do not have a clear understanding of financial management, nor do they maintain proper financial records. This lack of financial knowledge often leads to difficulties in organizing expenditures and managing finances. As a result, many MSMEs struggle to present their financial standing clearly, making them ineligible for capital credit access. The purpose of this study was to examine the impact of financial literacy on the financial behavior of MSME actors in Ulugawo, Nias. The research employed a quantitative descriptive approach, with data collected through questionnaires. The data analysis revealed that financial literacy accounts for 70% of the variation in financial behavior among MSMEs in Ulugawo, indicating that the remaining 30% is influenced by other factors not covered in this study. The t-test results for the financial literacy variable (X) showed a t-value of 2.191, with a significance level of 5%. The calculated r-value was greater than the critical r-value (r-calculated > r-estimated, 1.6759), confirming the significant influence of financial literacy on financial behavior.

Multi-criteria decision-making model for sustainability functions integrated Industry 4.0 technologies within small and medium enterprises in emerging countries

PurposeIn the Industry 4.0 (I4.0) era, small and medium enterprises (SMEs) face significant pressure to make their manufacturing operations more sustainable. However, SMEs often lack the knowledge and information needed to leverage I4.0 technologies for achieving sustainability. This paper aims to develop a multi-criteria decision-making (MCDM) model to prioritize sustainability functions supported by I4.0 technologies in SMEs.Design/methodology/approachThe fuzzy-DEMATEL method was developed to classify sustainability functions based on their prominence and influence, categorizing them into cause-and-effect groups. Experts in I4.0 technologies, sustainability and SMEs from Brazil were consulted during the data collection phase. Sensitivity analysis was also performed to validate the results obtained through the DEMATEL method.FindingsThe results indicate that the most prominent and influential sustainability functions include organizing production processes, employee skill development and simplifying production planning and control. Therefore, investing in I4.0 technologies to support these functions can enable SMEs to amplify the impact of their sustainability initiatives and improve operational efficiency. The authors also observed that improving quality monitoring is the primary function within the effect group.Practical implicationsThis paper serves as a roadmap for SME managers seeking to enhance the effectiveness of their sustainability practices using I4.0 technologies, thereby maximizing impact while minimizing the complexity of implementation.Originality/valueThis study ranks key sustainability functions as actions and practices that SMEs can implement using I4.0 technologies to achieve sustainability. It also identifies the most prominent and influential functions managers should prioritize when investing in I4.0 technologies.

Perencanaan Strategi Bisnis Usaha Online: UMKM

The development of micro, small and medium enterprises (MSMEs) requires a joint role in the environment from both regulators and other companies. The Business Competition Supervisory Commission (KPPU) together with the Ministry of Cooperatives and SMEs signed a memorandum of understanding to form a task force to monitor partnerships established between SMEs and large industries. This article explores the programs organized by the Ministry of Cooperatives and Small and Medium Enterprises for the development of MSMEs. Through literature and online research about company programs, researchers can compare them with government policy programs to analyze the accuracy of expert programs. The research results show that the joint Business Competition Supervisory Commission (KPPU) program can fulfill the policies of the Ministry of Cooperatives and SMEs stipulated in the 2020-2024 Strategic Plan.

COVID-19’s Effect on Indian MSMEs: Insights from Stakeholders

Indian MSME (Micro, Small and Medium Enterprises) sector, an invaluable employment generator with a cluster of more than 63 million enterprises, is deeply dented by the noxious coronavirus. The second most significant sector of the Indian economy regarding employment creation is in jeopardy after the Covid-19. The sudden abject degradation of performance and eventual threat to the existence of MSME not only captivates the attention but also sets in disquietude in mind to fathom the inherent causes of this fragility and excogitate the ways and means of saving them. Against this background, proper diagnosis of the effect of Covid-19 on MSMEs is inevitable. The analysis is based on Qualitative as well as secondary data. Qualitative data has been collected through semi-structured interviews with 48 MSME stakeholders selected by Judgmental Sampling. The research finds significant challenges before MSME that must be tackled to salvage the industry from an imminent existential threat. The paper recommends the adoption of Industry-4.0 and the closure of gaps identified in the paper to give saving breath to the financially beleaguered and faltering sector. During the last few years, Covid-19 has grabbed literature positioning galore, but they are not specific to Indian MSME. This study is an attempt to gauge the obstacles, measures and gaps faced by Indian MSME post COVID scenario.

Digital Transformation as a Moderator in the Relationship between Green Entrepreneurial Orientation and Financial Bootstrapping on Financial Performance

This study examines how digital transformation can moderate the relationship between Green Entrepreneurial Orientation (GEO) and Financial Bootstrapping on the financial performance of culinary Micro, Small, and Medium Enterprises (MSMEs) in Malang City. Data was collected from 390 MSMEs in the food and beverage industry using questionnaires and analyzed using multiple linear regression and moderated regression analysis. This regression model highlights the significance of Green Entrepreneurial Orientation and Financial Bootstrapping as primary methods influencing the financial success of MSMEs. Digital Transformation as moderated is significant. To get best outcomes, MSMEs must integrate sustainability methods with financial efficiency concurrently, rather than concentrating on a singular aspect.