Micro, Small And Medium Enterprises In Indonesia Research Articles

How can Organizational Support Increase Employee Motivation and Performance? Studies on Employees of MSMEs in Indonesia

Purpose – This study aims to investigate how the supervisor support (SVS) and co-worker support (CWS) affects employees in micro, small and medium enterprises (MSME) in Yogyakarta, Indonesia. Aims(s) – This study tested and strengthened the results of previous research regarding how SVS and CWS increased the motivation and performance of employees in the MSME sector in Yogyakarta, Indonesia. Design/methodology/approach – This study used 426 employees who were collected using a questionnaire. After the questionnaire was declared valid and reliable using the data collected, it was continued with testing the research hypothesis using structural equation modeling (SEM) with a two-step approach. Findings – The results of this study found that employees do need support from supervisors and co-workers, so that all variables in this study are correlated. In addition, employee motivation was directly influenced by emotional CWS, while employee performance was influenced by instrumental CWS. SVS had no direct effect on motivation and performance but encouraged employees to provide support to their co-workers both emotionally and instrumentally. Limitations of the study – The limitations of this research were using cross-section data to test the mediation model and using self-assessment in filling out the questionnaire which caused common method variance. Future research would be better if longitudinal data and other ratings were used to overcome this problem. Practical implications – Supervisor support has an effect for increasing co-worker support. These two forms of support are very necessary in increasing employee motivation and performance. Originality/value – Unlike the results of previous research, this research found that leader support cannot immediately improve employees’ performance. Supervisor support was mediated by other variables, which in this case was co-worker support which can motivate employees to improve their performance.

The Effect of Generation Z Participation and Financial Technology Innovation on Community Welfare and Sustainable Development in MSMEs in Indonesia

This study investigates the effect of Generation Z participation and Financial Technology (FinTech) innovation on community welfare and sustainable development within Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative research approach was employed, utilizing a cross-sectional survey design to collect primary data from MSME owners, employees, and stakeholders. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was used to analyze the data and test the hypothesized relationships. The findings reveal significant positive relationships between both Generation Z participation and Financial Technology Innovation with Community Welfare and Sustainable Development. The results underscore the importance of harnessing youth entrepreneurship and technological innovations to drive socio-economic development and promote sustainable growth within the MSME sector. These findings have significant implications for policymakers, entrepreneurs, and stakeholders striving to foster inclusive and sustainable development in Indonesia.

Business Model Transformation and Information Technology Use on the Quality of Accounting Information Systems in MSMEs in Indonesia

This research investigates the impact of business model transformation (BMT) and information technology utilization (ITU) on the quality of accounting information systems (QAIS) in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative approach is employed, with data collected through a survey of MSMEs across various industries. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) is used for data analysis. The findings reveal significant positive relationships between BMT, ITU, and QAIS. Business model transformation and IT utilization are found to significantly enhance the quality of accounting information systems in Indonesian MSMEs. These results highlight the importance of innovative business practices and effective technology adoption in improving financial management processes within MSMEs, providing valuable insights for practitioners, policymakers, and researchers.

Determinant Factors Affecting Compliance MSME Taxpayers (Case Study of Cipadang Village Community)

Given that taxes represent the primary revenue source in Indonesia, the government places significant emphasis on the tax processing procedure. Micro, Small, and Medium Enterprises (MSMEs) receive a government-borne incentive of 0.5 percent Final Income Tax, underscoring the government's support for this sector. With 64.2 million MSMEs in Indonesia in 2019, comprising 99.99% of all business entities, these taxpayers are exempted from tax remittance up to a specified threshold, with no tax deductions or collections enforced upon their payments. This study endeavors to assess the impact of religiosity, love of money, tax knowledge, taxpayer awareness, tax rates, and tax sanctions on compliance among MSME taxpayers registered in Cipadang Village. Employing a quantitative approach, data is gathered through questionnaires, involving 30 respondents who are MSME taxpayers. This research contributes to the advancement of tax accounting and behavioral accounting research, particularly concerning compliance with tax payments among MSME taxpayers.

Training for Preparation of Business Feasibility for Bantar Sari Village, Distric Rancabungur, Bogor

Micro, small and medium enterprises (MSMEs) have an important role in the Indonesian economy. The Indonesian government also considers the existence of MSME actors important. The proof is that UMKM together with Cooperatives have a special forum under the Ministry of Cooperatives and UKM. MSMEs is a business sector that has quite good business potential where as MSMEs develops, the level of employment also increases. The number of MSMEs in 2018 was recorded at 64.2 million units, while in 2019 it grew 5 percent to 67.4 million units. The development of Micro, Small and Medium Enterprises (MSMEs) has proven to be the main driver of the real sector that direct effect on national economic growth. MSMEs from 2016-2019 grew by 4.2% annually with an average contribution of MSMEs to Indonesia's Gross Domestic Product (GDP) of 50% for the last 3 years. Information owned by the Ministry of Cooperatives and Small and Medium Enterprises in March 2021, the number of MSMEs in Indonesia is at 64.2 million, and has a gross domestic GDP contribution of up to 61.07%. MSMEs can absorb up to 97% of the total workforce and can collect up to 60.42% of the total investment in Indonesia. However, the development of MSMEs generally still experiences various problems and is not fully in accordance with expectations. The problem that is still an obstacle in developing MSME businesses is the limited capital they have and the difficulty for MSMEs to access sources of capital. In order to help access funding, guidance and directions are needed in order to obtain banking funds for these small businesses. For this reason, a program of activities for preparing feasible business planning proposals is needed. This community service method uses descriptive methods, namely through surveys and observations. The initial stage was observation of Bantar Sari Village, Distric Rancabungur, Bogor to identify the business ventures that were currently being carried out. Furthermore, the formulation stage is the identification of the internal and external environment and is continued with the feasibility study stage. Delivery of training for the community, most of whom are MSMEs, is conducted at the Bantar Sari Village, Distric Rancabungur, Bogor, where the participants are quite enthusiastic about participating in the training program, this can be seen from the number of question that were entered.

ANALYSIS OF THE APPLICATION OF MALCOLM BALDRIGE CRITERIA (MBCFPE) TO BUSINESS ACTORS IN INDONESIA

This research explores the challenges and opportunities for Micro, Small and Medium Enterprises (MSMEs) in Indonesia, focusing on the implementation of the Malcolm Baldrige Criteria for Performance Excellence. Although the MSME sector in Indonesia is very large, limited capital, access to technology, and market reach hinder their competitiveness against larger companies. Along with that, the proliferation of online media adds complexity to the business landscape, demanding rapid adaptation. Strategic human resource management is emerging as a critical factor for long-term organizational development. The research uses the Malcolm Baldrige Award as a benchmark for performance appraisal, which includes leadership, strategic planning, customer focus, measurement and analysis, workforce focus, process management, and results. The study sampled six businesses, revealing the varying impact of these criteria on their performance. Key findings highlight the key role of leadership and customer-focus in influencing MSME outcomes, while other criteria show mixed and sometimes less significant effects. Full implementation challenges include a lack of a clear vision-mission statement, lack of organizational structure, and limited emphasis on product innovation. The research concludes with recommendations for MSMEs in Indonesia, emphasizing the importance of developing a clear vision, improving organizational structure, and increasing focus on innovation. These findings provide deep insight into the dynamics of MSMEs and offer strategic direction to navigate Indonesia's evolving business landscape.

Pengaruh Inklusi Keuangan, Literasi Keuangan, Inovasi dan Pengelolaan Keuangan Terahdap Kinerja UMKM di Yogyakarta

Micro, Small and Medium Enterprises (MSMEs) are to grow and develop businesses in order to build a national economy based on a just economic democracy. MSMEs in Indonesia have a significant contribution or role in expanding and absorbing new workers. MSMEs themselves have the advantage of producing consumer goods and services that are close to the needs of the community. There is still an obstacle that MSME actors still lack an understanding of the effects of inclusion, financial literacy, innovation and financial management in various types of businesses, especially on the performance of MSME by business actors. The reason of this consider is to decide the impact of budgetary incorporation, budgetary proficiency, advancement and monetary administration on the execution of MSMEs. The test measure utilized was 100 respondents who claim businesses. The examining method utilized in this ponder utilized a focused on inspecting procedure and the information were analyzed utilizing numerous relapse investigation to test the speculations. The comes about of this think about appear that the affect of monetary incorporation features a positive and significant affect on MSME execution, money related proficiency incorporates a negative and noteworthy affect on MSME execution, and development contains a positive affect on MSME execution. However, the impact is small, financial management has a positive impact on MSME performance, while financial management has a significant impact on MSME performance. It has a positive effect and has a significant impact on MSME performance.

PENDAMPINGAN MANAJEMEN USAHA KECIL PADA KELOMPOK SRIKANDI GUNA PENINGKATAN PENGHASILAN KELUARGA

Micro, Small, and Medium Enterprises (MSMEs) are one of the sectors that are the foundation of the economy in Indonesia. The condition was proven during the Covid-19 pandemic; there were still many MSMEs that were able to survive and become one of the family's economic boosters. Despite their significant role, many problems are faced by MSMEs in Indonesia, including limited capital, business management, and marketing of production results. This Community Service activity aims to help women members of the Srikandi MSME group as fostered partners so the business can be marketed better. The activity was conducted in Gilingan Village, Banjarsari District, Surakarta Municipality. This activity was carried out intensively and received a positive response from the fostered partners. From the activity results, partners gain meaningful insight into entrepreneurship. Encouraged partners also receive guidance on managing their business and marketing concepts to increase sales volume and get maximum profits.

Entrepreneurship and MSME market orientation toward creative industries: Society Era 5.0 in Makassar city

Micro, small, and medium enterprises (MSMEs) are the most important pillar of the Indonesian economy. Based on data from the Ministry of Cooperatives and SMEs, the number of MSMEs currently stands at 64.2 million with an annual contribution to GDP of 61.07%, IDR 8,573.89 trillion. The contribution of MSMEs to the Indonesian economy includes the ability to absorb 97% of the total existing workforce and raise 60.4% of total investment. However, the MSMEs in Indonesia aren’t immune to existing challenges. The contribution of MSMEs to the economic cycle in Indonesia is quite large, reaching 90% every year. There are 19,000 MSME business units in Makassar City, dominated by the culinary sector. The regional government is committed to supporting MSMEs in the era of digitalization and global competition through Society Era 5.0. By increasing the ability of MSMEs to utilize e-commerce, it is hoped that the sector can grow and contribute significantly to the economy of Makassar City. The impact of the COVID-19 pandemic has encouraged a shift in the consumption patterns of goods and services from offline to online, with an increase in internet traffic of around 15%–20%. This momentum will accelerate digital transformation. Indonesia's digital economic potential is still wide open with the fourth largest population in the world and an internet penetration that has reached 196.7 million people.

ERP-Based Management Information System for MSMEs in Indonesia: A Systematic Literature Review

This study is a systematic literature review on ERP-Based Management Information Systems for MSMEs (Micro, Small and Medium Enterprises) in Indonesia. Through an analysis of previous studies, the findings show that the use of ERP can integrate various business functions in one integrated system, automate business processes, and provide fast access to real-time information, thereby increasing the operational efficiency and productivity of MSMEs. The research method in this paper is carried out systematically, starting with identifying research questions and determining the paper's contribution. Furthermore, a search strategy was carried out, selecting relevant and quality documents and extracting data to produce output in this study. The results show that ERP provides integrated data access, enables better and more informed decision-making, and helps plan business growth better. Although ERP adoption requires initial investment and wise management, the use of ERP has proven to impact the competitiveness and growth of MSMEs in Indonesia positively. This study will provide an in-depth understanding of the ERP-Based Management Information System and contribute to developing strategies and policies that support the growth and sustainability of the MSME sector in Indonesia.

Human Resource Management, Technology Adaptation, and Environmental Policy: A Multi-Variable Study of MSME Entrepreneurship in Indonesia

This research explores the dynamics of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, focusing on the interplay between Human Resource Management (HRM), Technology Adaptation, Environmental Policy, and MSME entrepreneurship. Despite government support and encouragement, MSMEs face challenges, particularly in managing human resources effectively and adapting to technological advancements. The study investigates the impact of HRM practices, technology adaptation, and environmental policy on MSME success through the lens of entrepreneurship. Using quantitative research design and Structural Equation Modeling (SEM), the study analyzes data collected from a diverse sample of Indonesian MSMEs. The findings highlight the positive influence of effective HRM practices, technology adaptation, and environmental policy compliance on MSME entrepreneurship and success. The implications of the study suggest strategic considerations for entrepreneurs, policymakers, and stakeholders to enhance the growth and sustainability of MSMEs in Indonesia.

Tourism Villages for Micro and Small Enterprises Labor Absorption

Micro, Small, and Medium Enterprises (MSMEs) are the most important pillars of Indonesia’s economy. It has considerable contribution in providing employment in the informal sector. However, the high absorption of labor accompanied by the increased number in MSMEs in Indonesia cannot be separated from the existing challenges. This study aims to analyze the determinants of employment in the Micro and Small Enterprises sector (MSEs). MSEs actors in the tourism village area, Patuk sub-district, Gunungkidul, Yogyakarta. This research is focused on the role of the type of business and the status of the tourism village. The analytical tool used is the robust ordinary Least Square (OLS) method. The results showed that turnover and length of business had a real impact on increasing the absorption of MSEs workers according to the type of business and the status of the tourism village. Other findings show that Micro and Small handicraft businesses showed the highest employment absorption in tourism village with developed status, followed by businesses in the service, processed food, and trade sectors. The same results are also shown in the status of developing tourist villages. The potential of tourist villages with the advantages of the business sector has a real impact on increasing employment. Therefore, policymakers need to formulate strategies for the development of tourist villages to improve the welfare of local communities.

Peranan Hukum Ekonomi Islam dalam Meningkatkan Kesejahteraan UMKM di Indonesia

Micro, Small and Medium Enterprises (MSMEs) is an economic sector that plays an important role in improving the welfare of the people in Indonesia. However, MSMEs still face various obstacles, one of which is the legal aspect. This research aims to examine the role of Islamic economic law in improving the welfare of MSMEs in Indonesia. The research method used is qualitative, using literature studies and interviews with several Islamic MSME actors. The results show that Islamic economic law has a positive role in improving the welfare of MSMEs, both in terms of economic, social, and spiritual aspects. Islamic economic law provides principles that are in accordance with Islamic values, such as justice, balance, transparency, accountability, and social responsibility. Islamic economic law also provides legal protection for MSMEs, both in terms of licensing, agreements, and dispute resolution. Thus, Islamic economic law can be one of the solutions to overcome the problems of MSMEs and improve the welfare of the people in Indonesia.

Behavior analysis of MSMEs in Indonesia using fintech lending comparative study between sharia fintech lending and conventional fintech lending

<span lang="EN-AU">The presence of sharia financial technology (fintech) as a credible financial institution is expected to be able to help the problems that are often faced by Micro, Small and Medium Enterprises (MSMEs) in Indonesia. This study aims to determine whether there are differences in the behavior of MSME actors in the use of sharia fintech lending and conventional fintech lending. The research method used in this research is normative legal research by analyzing the laws and regulations as well as relevant studies through the issues in the study. This study uses a statutory and conceptual approach, both of which function to analyze the applicable legal rules so that differences can be found between conventional and sharia peer to peer lending fintechs and the extent to which sharia rules are applied in these fintechs. This study concludes that Islamic fintech plays a role as a driving factor in increasing the inclusiveness of Micro, Small and Medium Enterprises (MSMEs) in Indonesia. The presence of the sharia fintech industry can overcome the problems of Micro, Small and Medium Enterprises (MSMEs) in Indonesia, especially related to financing needs, ease of transaction processing, expansion of market access, and ease of preparation of financial reports</span><span lang="EN-US">.</span>

Analyzing the Impact of Tax Policy on Financial Performance and Compliance of MSMEs in Indonesia

The complex relationship between tax policy components and the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia is examined in this study. A survey was conducted with a sample of 250 MSMEs to capture different industry types, firm sizes, and geographical regions. The study assessed the relationship between tax rates, tax incentives, firm size, industry type, and financial performance indicators using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The structural model yielded important insights, while the measurement model demonstrated good validity and reliability. As lower profitability correlates with higher tax rates, policymakers should consider the tax burden of MSMEs. On the other hand, tax incentives show a good correlation with financial performance, suggesting that they may be useful in encouraging MSME expansion. The complex interaction between firm size industry type and financial performance is highlighted. The SEM-PLS model fits the data well, according to the model fit assessment. To support the sustainable expansion of MSMEs in Indonesia, policymakers and MSME owners can benefit from the results of this study, which has practical implications such as for the Government is the present policies need to be evaluated in order to improve MSME compliance. Meanwhile, it is important for MSMEs to improve their competencies such as financial literacy.

MARKET MICROSTRUCTURE AND FINANCING EFFICIENCY IN MSMES IN INDONESIA: COMPARISON OF SHARIA AND CONVENTIONAL SECTORS

The objective of this research is to examine the financing efficacy and market microstructure of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Specifically, it compares the conventional sector with the sharia-compliant sector. This study employs Structural Equation Modeling with Partial Least Squares (SEM-PLS 4) to examine access to financing, utilization of collateral, and ability to pay with a sample of 132 MSMEs. The results of the study demonstrate distinct variations between conventional and sharia-compliant MSMEs, underscoring the influence of market microstructure elements on financial accessibility. SMBs that adhere to sharia law demonstrate, in particular, increased levels of access to capital and utilization of collateral. This research makes a valuable contribution to the comprehension of sectoral dynamics and provides policymakers, financial institutions, and MSMEs in Indonesia with practical implications.

Antecedents of Competitive Advantage and Its Consequences on Business Performance

Micro, Small, and Medium Enterprises (MSMEs) are one of the popular economy sectors that play an important role in advancing Indonesia's economy. The high number of MSMEs in Indonesia certainly increases the competition among MSMEs. Thus, to survive, MSMEs need continuous improvement in their Business Performance. This study aims to analyze the antecedents of competitive advantage and their consequences for business performance moderated by live streaming commerce. The method of writing scientific articles is by using qualitative methods and literature studies or library research. Reviewing theories and reviewing literature books that are in accordance with the theories discussed. The results of this study indicate that Entrepreneurial marketing has a positive and significant effect on business performance. E-commerce adoption has a positive and significant effect on business performance. Entrepreneurial marketing has a positive and significant impact on competitive advantage. E-commerce adoption has a positive and significant effect on competitive advantage. Competitive advantage has a positive and significant effect on business performance. Live streaming commerce moderates the influence of entrepreneurial marketing on business performance. Live streaming commerce moderates the effect of e-commerce adoption on business performance. Competitive advantage mediates the effect of entrepreneurial marketing on business performance. Competitive advantage mediates the effect of e-commerce adoption on business performance.

PEMBERDAYAAN DAN PENDAMPINGAN E-COMMERCE UMKM DESA KRIYAN KECAMATAN KALINYAMATAN KABUPATEN JEPARA

Micro, small and medium enterprises (MSMEs) have an important role in the Indonesian economy. Indonesia's increasing economic growth cannot be separated from the role of MSMEs. In particular, the contribution of MSMEs to Gross Domestic Product (GDP). Of course, e-commerce can also be an access for MSMEs to enter international markets. As technology develops, it becomes easier to do this, so this opens up opportunities for MSMEs to be able to optimize company operations and e-commerce. To make this happen, of course, cooperation from various parties is needed, from the government, e-commerce practitioners, academics, economic actors, and of course community support. It is hoped that e-commerce will be able to encourage the progress of MSMEs in Indonesia and especially in Kriyan Village in order to increase Indonesia's economic growth. The community service method is carried out through socialization, lectures and discussions, mentoring/practice and evaluation so that targets and goals are achieved according to targets. The result of this service activity is that the MSMEs are very enthusiastic about participating in online marketing training. Kriyan Village MSMEs have used social media as a marketing medium with a composition of 90% Instagram, 25% Tiktok and 50% Facebook, or it could be said that 85% of the skills of Kriyan Village MSMEs have increased so that they are able to operate digital marketing in promotional media. MSMEs not only know this, but they can also identify social media models that can be used as marketing material.

The Role of Government Policy on the Influence of Digital Marketing Through Social Media on the Performance of Micro, Small and Medium Enterprises (MSMEs) in Indonesia

The research objective ware to examine the role of government policy on the influence of digital marketing through social media on MSMEs in Indonesia. This type of research is quantitative, with an explanatory approach. The research ware conducted on 500 MSME actors or owners in Indonesia who used digital marketing through social media channels (Instagram, Facebook and Twitter) as their marketing tools. Data collection through a questionnaire in the form of a google form which is distributed online. The questionnaire was processed and transformed into an interval scale using the Method of Successive (MSI), then analyzed using the SEM (Structural Equation Modeling) model through the AMOS software. The results showed that perceived ease of use had a positive effect on attitudes towards using social media. Perceived usefulness of using social media has a positive effect on attitudes towards using social media. The attitude of using social media has a positive effect on the use of social media. The use of social media has a positive effect on the performance of MSMEs. That is, the higher the use of social media, the higher the performance of MSMEs. Government policies have a positive effect on the performance of MSMEs. That is, the higher the government policy, the higher the performance of MSMEs. Government policies moderate the influence of social media use and MSME performance. That is, government policies strengthen the influence of social media use and the performance of MSMEs.

The Importance of MSMEs for Poverty Alleviation: A Story from Indonesia

Objective: This study examines poverty in Indonesia from an economic approach and discusses the importance of micro, small, and medium enterprises (MSMEs). It focused on the impact of these enterprises on poverty in the country. Methodology: The analysis incorporated an autoregressive model wherein total workers in MSMEs and economic growth rate as explanatory variables. Annual time series data for the period of 2007-2019 has been used. The study also reviews the earlier empirical studies on the relationship between the growth of MSMEs and poverty alleviation in many other countries/regions. It represents the descriptive analysis of the explanatory variables and trends in poverty and MSMEs’ workforce. The poverty-reducing impact of the increase in MSMEs’ workers has been examined. Findings: The result is significant which implies that MSMEs can play a very important role in poverty alleviation in Indonesia. The results of the study imply that a strong MSME base is required for the development of the economy and poverty alleviation in the country. Noverlty: There are many studies regarding MSMEs in Indonesia. However, empirical research regarding the impact of the growth of employment opportunities in MSMEs on poverty levels in Indonesia is still very rare. Therefore, this research fills this gap and at the same time stimulates further research.