Micro, Small And Medium Enterprises Entrepreneurs Research Articles

Business Survival: Competence of Micro, Small and Medium Enterprises

As a form of business that is able to survive during the financial crisis, Micro, Small and Medium Enterprises (MSMEs) have received the attention of all parties. In practice, MSME entrepreneurs have several obstacles other than capital. The large number of public interest in MSMEs creates competition for MSMEs that have similar business sectors. The low performance produced by MSMEs is due to the low quality of entrepreneurial competence. This research was conducted to determine the competencies required by MSMEs. The research method used in this research is descriptive qualitative. The sample of this research is 56 MSME entrepreneurs in the Tropodo village area, Waru sub-district, Sidoarjo district, East Java. The results of the study indicate that business actors already know their entrepreneurial competencies. Human relations competence is the most mastered competence and the lowest competence possessed is financial competence.

Self-Management Techniques in Managing Time Strategies for MSMEs Affected by PPKM Covid 19

Self-management techniques can be used to improve behavior, control self, and time management strategies of entrepreneurs. The implementation program is carried out in Ciujung Damai Kragilan Housing with large traders. Activities are carried out with licensing for MSMEs (micro, small and medium enterprises) affected by the Covid-19 PPKM. This activity is carried out using stages such as self-observation, self-evaluation, giving reinforcement, and behavior. The programs in this activity are observation, interviews, and data collection. Research time is for 1 month. The number of MSME entrepreneurs that will be studied is 3 people. The achievements in this study were greatly improved with self-management techniques. The use of techniques by MSME entrepreneurs is more useful and time is not wasted. Strategic management in self-management techniques is able to make MSMEs gain good self-control. The effectiveness of the time set can run efficiently. And change life to the maximum than before. The recommendation used in SMEs is to use self-management techniques as the main factor in time management.

Mediation Role of Brand Image and Brand Quality on the Effect of Sales Promotion on Purchase Decisions: Study of Indonesian MSMEs

Micro, Small, and Medium Enterprises (MSME) are indicators of a productive and healthy Indonesian economy regarding people's well-being. This study aims to investigate the function of brand image and brand quality as a mediator in the influence of sales promotion on customer choice to purchase MSME goods in Indonesia. A cross-sectional design was adopted for this survey investigation. Simple random selection was used to choose 150 respondents as a sample of Indonesian MSME entrepreneurs involved in providing products and services. A closed questionnaire was utilized as the study instrument. Partial Least Squares Structural Equation Modeling was utilized to analyze the data (SEM-PLS). The findings revealed that while brand image had no significant influence on purchase decisions, it considerably affected sales promotion. Brand quality has no bearing on purchase decisions. Sales promotion has a major influence on brand quality, and sales promotion greatly affects purchase decisions. Brand image and quality are important in helping Sales Promotion make better product purchase decisions. Because changing brand image and brand quality may dramatically improve sales promotions that affect Product Purchase Decisions.

Interdependence of Influence between Risk Management Behavior, MSME Characteristics, and Overconfidence on Business Sustainability (A case study in Indonesia)

More than 50% of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia run their business for reasons of livelihood, while 30% do this since MSMEs are profitable, and may support their living costs. This study aims to determine and analyze the influence of risk management behavior, characteristics of MSMEs through overconfidence on MSME business sustainability, and consequently MSMEs as a source of livelihood. The result of this study indicates that risk management behavior has a significant positive effect on overconfidence, while the characteristics of MSMEs have a significant negative effect on that. In turn, it’s shown that overconfidence had a positive and significant effect on the sustainability of MSMEs. However, the characteristics of MSMEs and risk management behavior had no significant positive effect on the sustainability of MSMEs. These results indicate also that MSME entrepreneurs’ overconfidence plays a major role in managing their business, which could be considered by the local government and/or the central government in determining MSME policies, such as placements to sell which are given and regulated by each local government considering the accessibility of sellers and buyers as well as their safety.

ANALISIS TINGKAT KEBUTUHAN MODAL BAGI USAHA MIKRO, KECIL DAN MENENGAH (UMKM) DI KECAMATAN LIMBOTO KABUPATEN GORONTALO

This research aims to: determine and analyze the level of capital requirements for Micro, Small and Medium Enterprises (MSMEs) in Gorontalo Regency. The research method uses a qualitative research approach with qualitative descriptive research. The results based on research findings show that: 1) Of the 50 respondents studied, only 9 respondents or 18% of MSMEs have applied for credit to banks for business development, 2) The level of capital development needs most of it comes from bank credit, with the amount of around Rp. 5,000,000 – Rp. 10,000,000, 3) The ability of MSME Entrepreneurs for the installment payment period is under 3 years with the installment amounting to Rp. 200,000 – Rp. 300,000/month, and 4) The obstacles in applying for credit to banks for MSMEs are high interest rates and heavy credit collateral requirements.

The Role of Social Media in Promotion of Micro, Small and Medium Enterprises (MSMEs) and Its Implications Law Number 11 of 2008 Concerning Information and Electronic Transactions (UUITE)

The application of telematics applications (telecommunication, media and informatics) is one of the keys to support efforts to increase the competitiveness of the national industry. Currently, telematics is very easily accessible by entrepreneurs to improve their business competitiveness, including Micro, Small and Medium Enterprises (MSMEs). MSMEs use telematics services in the form of social media as a marketing tool to inform and offer products/services to consumers. MSME entrepreneurs choose social media for marketing to consumers online because this media is very easily accessible to both MSME actors and the general public. The purpose of this study is to examine the benefits of social media for MSME entrepreneurs and what are the implications for Law Number 11 of 2008 concerning Information and Electronic Transactions (UUITE). The research method uses a qualitative method, namely a descriptive approach to secondary data derived from literature, research journals, books, and websites that access the latest data information related to the use of social media and descriptive by utilizing secondary data derived from various literatures such as books, journals/articles and homepages to access the latest data and information related to the impact of social media in improving MSME business and its relation to the ITE Law. From the results of this study, it can be concluded that the use of social media is proven to increase sales of MSME products/goods and services and the ITE Law basically provides protection, security and data confidentiality during e-commerce transactions while also emphasizing responsibility to entrepreneurs as a result of event of failure in the function (malfunction) in the e-commerce system.

The Performance of Snack MSMES in the Covid-19 Pandemic (A Review from the Income Side)

This study aims to find out how the performance of micro, small and medium enterprises (MSMEs) snacks during the Covid-19 pandemic. Does the Covid-19 pandemic affect the continuity of the MSME Snack business? To see the performance of MSMEs is measured based on the Balance Score Card, however in this study, research is limited to only looking at the financial side (income). This study uses a qualitative method with two informants, namely dodol and snack MSMEs in Garut, West Java and kemplang (baked crackers) MSMEs in Palembang, South Sumatra. As a result, it turns out that the Covid-19 pandemic has not affected snack MSMEs. Turnover (gross income) of MSMEs snacks actually increased during the Covid-19 pandemic. Anticipating the limited human travel during the Covid-19 pandemic, MSME entrepreneurs also sell through online stores and market places. However, the sales turnover is not as big as direct sales in stores. There are still more buyers who come to buy snacks at the shop.

Analysis of Entrepreneurial Leadership Skills and Sustainable Employee Productivity of MSMEs

The Philippine economy's backbone has been referred to as micro, small and medium enterprises (MSMEs) and is also the subject of intense attention from many government institutions and corporate bodies. MSMEs are rightly seen as drivers of economic change and development. A leader, on the other hand, is someone who assumes a leadership position which, by setting a good example and being effective in what he does, inspires a team of followers by winning their confidence and respect. He actively empowers and directs them. This paper intends to examine the correlation between the characteristics of MSME owners or entrepreneurs regarded as leaders and employee productivity that may affect success. Data is collected through a survey from fifty (50) MSMEs of Bulacan, who were chosen by the purposive sampling method. Descriptive statistics and non-parametric tests (Mann-Whitney U test and the Kruskal-Wallis test) were conducted to examine sustainable productivity by demographic profile and leadership skills manifested by MSME owners. The results thereof indicate that leadership skills possessed by MSME entrepreneurs revealed a significant correlation when compared with employee productivity variables.

Entrepreneurial orientation and emotional bias in MSMEs’ financing and performance

There have been numerous studies investigating the dynamics of micro, small and medium enterprises (MSME) development. However, this research topic still offers several interesting research gaps to be explored. Accordingly, the purpose of this research is to test the effects of entrepreneurial orientation and asymmetric information that affect MSME entrepreneurs’ emotional biases, as well as the relationships between these variables and MSME’s financing and performance. Our research objects are MSMEs located in four urban villages in Salatiga City, Central Java that engage in various business sectors, such as the food and beverage, the service industry, the groceryw, and the horticulture sector. We analyze the research data with the Partial Least Square (PLS) software. The research results reveal that entrepreneurial orientation and asymmetric information positively influence MSME entrepreneurs’ emotional bias. Meanwhile, emotional bias has a significantly positive influence on financing. Finally, we also find that financing positively affects MSMEs’ performance. In sum, our study demonstrates the importance of the behavioral aspect (emotional bias) in explaining MSMEs’ performance through its indirect impact through financing.

Digital Media Marketing Strategies for MSMEs during the Covid-19 Pandemic

Covid-19 pandemic has changed marketing patterns of the Micro, Small, and Medium Enterprises (MSMEs) entrepreneurs to allow them to survive adversities as the impact of public activity restrictions by the government. The decline in consumer intensity and flow of goods and services has caused the reduction of entrepreneurs’ income as well as the goods and services trade cycle. This condition then encourages the entrepreneurs to adopt digital technology and develop digital entrepreneurship. The employment of digital technology and combination of knowledge, creativity, and innovation are crucial to ensure the survival of MSMEs during this pandemic. Government support in the forms of assistance, training, and program support for the digitalization of MSMEs continue to do considering they are the most impacted sector. The government through its several agencies keep working together to make entrepreneurs familiar with digital marketing. This research uses qualitative approach with library research as its method combined with interviews with the MSMEs entrepreneurs. This research found that the MSMEs entrepreneurs need to adopt digital technology in the forms of digital entrepreneurship transformation, digital marketing and creativity, and innovation in order to survive during the Covid-19 pandemic.

Pengaruh Orientasi Pasar, Konsumen, Merek, dan Inovasi Layanan terhadap Kinerja Umkm di Yogyakarta

This study seeks to assess the relationship between Micro, Small and Medium Enterprises (MSME) firm performance and market orientation, customer orientation, brand orientation and service innovation in development for all businesses. In past, very few studies have focused on the effect of marketing-related variables on MSMEs. This study aspires to put some insight into this. Data were collected from creative industry MSME business firm entrepreneurs located in Yogyakarta, A total of 91 MSME entrepreneurs were surveyed in the study through adopting tested survey questionnaires from the past literature. Correlation and regression analysis were used to test the hypotheses. Result indicates that market orientation, customer orientation, brand orientation and service innovation have a positive direct influence on MSME performance

FEASIBILITY ANALYSIS OF SMALL MEDIUM ENTERPRISES (MSMEs) IN MANDAILING NATAL REGENCY IN ACCESSING FINANCING IN SHARIA BANK

The background of this research is Micro, Small and Medium Enterprises (MSMEs), which are productive businesses owned by individuals or private business entities, also called populist businesses, which currently receive attention and privileges mandated by law, including business credit assistance with low interest, ease of business permit requirements, business development assistance from government agencies, and several other facilities. No exception in Mandailing Natal Regency, which on average has a Micro, Small and Medium Enterprises (MSMEs). Lack of a good management system and capital that causes the failure of Micro, Small and Medium Enterprises (MSMEs) in Mandailing Natal Regency. The analysis is used to determine whether Micro, Small and Medium Enterprises (MSMEs) are eligible in obtaining financing from Bank Syariah Mandiri KCP Panyabungan. This research is a descriptive qualitative research. Data collection techniques in this study were interviews, observation, and documentation. The research subjects in this study consisted of First Informants namely SMEs and Secondary Informants namely Bank Mandiri Sharia Panyabungan KCP. The results of the study can be seen that the micro financing of Bank Syari'ah Mandiri is an alternative financing product from Bank Syari'ah Mandiri which is intended for MSME entrepreneurs (Micro, Small and Medium Enterprises). Analysis of the feasibility of micro financing of the Syari'ah Bank Mandiri Panyabungan Sub-Branch Office to prospective customers is that the submission must meet the requirements: Character, Capacity, Capital, Collateral, Condition (5C) and the conditions that must be met by the SMEs. In accessing financing in Islamic banks is very influential because there must be requirements that must be completed so that the disbursement of financing for Micro, Small and Medium Enterprises (MSMEs) can be resolved as soon as possible and can be accepted by the bank.

PENERAPAN COST REDUCTION STRATEGIES DI MASA PANDEMI COVID-19 PADA USAHA KECIL MENENGAH (UMKM) KOTA BOGOR (Studi pada Anggota UMKM di Komunitas Kefir Bogor)

<p><em>This research purpose to know the application of Cost Reduction Strategies on Micro Small and Medium Enterprises (MSME).</em> <em>Cost reduction strategies have the meaning of "change" even though it is better known as "cost reduction" but any company that dares to implement cost reduction means that it is ready to change. The problem in the application of Cost Reduction Strategies is the difficulty in making a priority scale to determine cost items that can be streamlined and not optimal in carrying out the cost reduction stage. The focus of this study is more on the application of business process change strategies and also the efficiency of human resources. This research uses a qualitative description method. The technique of collecting data was done by interviewing and surveying a number of respondents using a sampling technique. The survey results showed 67% applied the concept of efficiency in business processes and 25% implemented a human resource efficiency strategy (streamlining), 8% of respondents stated that they did not implement an efficiency strategy during a pandemic because their income has actually increased. From the survey results, it shows that the main focus of MSME entrepreneurs when there is a decline in turnover is to make improvements to the production process firsts, streamlining is the final choice.</em></p><p><strong>Key words:</strong> <em>Cost Reduction Strategies, UMKM Bogor, Covid-19</em></p>

Faktor Kesuksesan Pengusaha UMKM Wanita Muslim Pengguna Kanal Digital

The surefire way to achieve prosperity is entrepreneurship. In the digital era, there are almost no obstacles to starting a business. The only capital is creativity and courage. Anyone can open an online store, without having to open a physical store first, including women. Women business actors are identical to Micro, Small, and Medium Enterprises (MSMEs). Indonesia and Malaysia are countries that have a majority Muslim population. For a Muslim woman, success can be seen when she manages to build a sakinah family. Women's digital entrepreneurship offers flexibility between work and household matters. This study aims to analyze the important factors that help explain the success of Muslim women MSME entrepreneurs who use digital channels in marketing their products. The study was applied through a descriptive-qualitative approach, where the data were primary-based. The objectivity was applied to 103 informants obtained from several MSME communities randomly from Indonesia and Malaysia. We find that social capital is a relevant factor for entrepreneurial success among Muslim women MSME entrepreneurs, the form of social capital is the number of children. This finding supports the idea that Muslim women entrepreneurs who have fewer children tend to spend more time on their business than Muslim women entrepreneurs who have more children. Financial capital projected by income growth also affects success, although income growth is on a small scale. Self-efficacy due to internal factors originating from within MSME female entrepreneurs such as self-confidence and tenacity, they are successful in their business. Religiosity has a significant effect on the success of a Muslim woman entrepreneur.

The Effect of Personality Traits And Financial Literation On Financial Behavior

The purpose of this study was to determine and analyze the influence of personality traits and financial literacy on financial behavior in young entrepreneurs of Micro, Small and Medium Enterprises (MSMEs) in Tasikmalaya City. The research method used is quantitative research methods. Data collection obtained through questionnaires, interviews, observation and literature study. The population in this study were 3,599 MSME Entrepreneurs in the City of Tasikmalaya. By using purposive sampling technique, the sample of this research is the beginner entrepreneurs of UMKM Kota Tasikmalaya who have just operated ≤ 5 years, as many as 30 entrepreneurs. The results of the study either partially or simultaneously, personality traits and financial literacy have a significant influence on financial behavior.

Can unemployment be answered by Micro Small and Medium Enterprises? Evidences from Assam

PurposeGenerating meaningful employment has become a major concern for countries across the globe to break the vicious circle of poverty. Employment creation becomes more intricate in a developing economy like India where the population is at an incessant rise, without a simultaneous increase in the employment generation. In the event of situations of mounting unemployment, micro small and medium enterprises (MSMEs) being largely labour-intensive have been claimed as a significant contributor in an economy’s development to induce employment generation. The study at hand is an attempt to gauge the overall contributions of MSMEs in employment creation in Assam, a developing region of the Indian sub-continent. However, most importantly, the purpose of this paper is to determine if men and women are differently employed in the sample MSMEs and if the pattern of employment creation is different across male and female-owned sample MSMEs.Design/methodology/approachThe study is based on a uniquely large sample of 320 MSME entrepreneurs with an equal representation of 160 each from male and female entrepreneurs. Secondary data sources were also consulted. Study areas comprising Kamrup-Metropolitan and Kamrup-Rural, depicting both urban and rural Assam, respectively. The choice of activities undertaken by the entrepreneurs includes a wide variety of 12 activities pertaining to all the MSME entrepreneurs in general and certain gender-specific in particular. The two hypotheses (H01 and H02) formulated were tested using the Chi-square test and the Mann-Whitney U test. Furthermore, the growth rate of employment generation in Assam along with the growth rate of the number of MSMEs established and investment made by the MSMEs were computed.FindingsThe calculated growth rate of employment creation, capital investment and MSMEs established were found to be positive. Based on the results of the Chi-Square test and Cramer’s V test, this paper establishes a strong association between the MSMEs and the total employment generation by the sample entrepreneurs (H01). The primary data suggested that 320 MSMEs are Employing 2,766 people in the study area with an average of 8 people per unit. Employment in the service sector is higher than the manufacturing units with an average of 4 people per unit. Another vital finding of the study professed that the women-owned MSMEs have a relatively lesser number of people (32.2%) employed than their male counterparts (67.8%). The mean rank of male entrepreneurs is considerably higher (211.49) testifying a higher employment creation by the male-owned MSMEs than the women-owned (H02). Moreover, women (33.4%) are thinly employed than men (66.5%). Women entrepreneurs were seen to have mostly limited themselves in micro-units followed by small-units. In terms of the nature of employment, full-time employees (81.8%) supersede part-time employees (6.6%). The pattern of self-employment is equal (5.8%) across both male and women entrepreneurs. MSMEs have been well identified as an impeccable answer to mitigate the problem of mounting unemployment.Originality/valueThe novelty of the study lies in its meticulous and explicit understanding of the employment scenario in Assam by the MSMEs. Empirical works on employment creation by the MSMEs in Assam were fundamentally based on secondary data sources. The study fills in the gap by providing a holistic picture of employment creation based on both primary and secondary data, but prominently on the primary. The study accounts details about the nature of MSME employment, the gender of the MSME employees, employment creation by male and female MSME entrepreneurs, the growth rate of MSME employment and self-employment to name a few

Brand development and entrepreneur’s role in small businesses

PurposeThe purpose of this paper is to frame the guidelines for brand building for micro, small and medium enterprises (MSMEs) and evaluate the role of the entrepreneur in the brand management process.Design/methodology/approachA qualitative study comprising in-depth interviews of 20 Indian MSME entrepreneurs who had experience with brand-building was conducted. The entrepreneurs were probed regarding the brand management process and their role in the brand-building efforts in their organization. The guidelines that emerged from the study were compared and contrasted with those proposed in Krake’s model, and a new model for brand-building is proposed.FindingsThe improvised new model highlights the importance of “name of the brand”, “managing finance simultaneously” and “exit strategy” as important factors for the creation of a successful brand, amongst other factors revealed in extant literature. The interviews also reveal that an MSME headed by a passionate entrepreneur who accommodates professional expertise witnesses a greater chance of success.Originality/valueIn spite of the growing importance of SMEs, scant attention has been paid to the issue of branding in SMEs. This study contributes to the literature on branding and small business research by examining and advancing the brand-building guidelines developed by Krake. It further looks at the role of the entrepreneur in the entire process of brand building in the increasingly evolving Indian market.

Entrepreneurial Marketing Strategy of Micro, Small and Medium Enterprises in Pandemic Covid-19 Era

Purpose: The Indonesian economy's core strength comes from micro, small and medium enterprises (MSMEs). However, the impact of the Covid-19 pandemic causes problems for MSMEs, for example, decreased sales, difficulties in financial aspects, slow distribution of products, and raw materials shortage. The problems of MSME during the Covid-19 pandemic require entrepreneurs' readiness to survive and sustain their business. Entrepreneurial marketing is a suitable paradigm to be implemented by MSME entrepreneurs during the Covid-19 pandemic. The research objective is to determine the entrepreneurial marketing strategy plan for MSMEs during the Covid-19 pandemic. Research Methods: The research informants were government officials of Industry and Trade, MSME, and academicians. The data analysis model used a SWOT analysis based on IFAS and EFAS assessments. The strategic plan was positioned on the SWOT matrix with the values of strength, weakness, opportunity, and threats. Findings: The results show that the SWOT matrix's entrepreneurial marketing strategy plan is in the position of Quadrant one. The entrepreneurial marketing strategy that should be applied in the quadrant is to support an aggressive growth policy. Practical Implications: This aggressive growth strategy focuses on using the company's strengths to take advantage of various business opportunities during the Covid -19 pandemic. Originality value: This study contributes to the survivability of MSMEs in Indonesia, especially during the Covid-19, and shows practitioners to harness the inner strength of their businesses and pursue proactive marketing policy.

Persepsi Pemahaman Pengusaha dalam Penyusunan Laporan Keuangan Berdasarkan SAK EMKM pada UMKM Kabupaten Jepara

The problem in developing Micro, Small and Medium Enterprises (MSMEs) is the lack of understanding of MSMEs in preparing financial reports based on SAK EMKM. The research aims to analyze information and socialization, education, length of business, and size of business to influence the understanding of MSMEs in preparing financial reports based on SAK EMKM. The research was conducted on 66 furniture MSME entrepreneurs in Jepara District. The research was conducted by distributing questionnaires and analyzed using multiple regression analysis and hypothesis testing t. The results showed that information and socialization had a significant positive effect on the preparation of financial statements based on SAK EMKM; education has a significant positive effect on the preparation of financial statements based on SAK EMKM; length of business has a significant positive effect on the preparation of financial statements based on SAK EMKM, and business size has a significant positive effect on the preparation of financial statements based on SAK EMKM.

The Correlation of Business Creativity and Social Media with MSMEs Entrepreneurial Performance

Micro Small and Medium Enterprises (MSMEs) in Indonesia plays a significant role in economic growth, especially by creating employment opportunities and, at the same time, reducing the unemployment rate. Small firms are high potential enterprises that need improvement in order to contribute to either micro- or macro-economic development in this country. Entrepreneurs need to strengthen their competitive advantage to ensure their long-term survival. Small firms face significant challenges that require them to devise an effective strategy to improve performance. The present study aims to investigate whether business creativity and social media among MSMEs correlate with entrepreneurial performance. The sample consisted of 120 MSMEs in the Special Region of Yogyakarta selected using the purposive sampling method. Respondents are owners or managers authorized with the responsibility for the survival of their enterprises. The results show that MSMEs entrepreneurs are using Instagram and that creativity-based MSMEs have better business entrepreneurial performance. The results imply that MSMEs entrepreneurs need to promote their products on social media and to improve their creativity to boost their business performance