Micro, Small And Medium-sized Enterprises Research Articles

Enhancing MSME: Exploring the Relationship between Financial Literacy, Financial Inclusion, and Capital Access to Improve Performance

The growth of micro, small, and medium-sized enterprises (MSMEs) is critical to Indonesia's present economic development. This study has the purpose of examining how financial literacy, financial inclusion, and access to capital affect the performance of MSMEs in the Banyumas area. The performance of MSMEs is the dependent variable in this study, and the independent factors are financial literacy, financial inclusion, and access to finance. This study used partial Least Squares (PLS) to handle data in this work. Purposive sampling procedures were employed to select 127 MSMEs from a total of 8,559 MSMEs in the Banyumas Regency as research participants. The study's main findings of the relationship between the three variables of financial literacy, financial inclusion, and access to capital on MSME performance show that these three variables significantly influence MSME performance, both partially and simultaneously. As a result, MSMEs with a high degree of financial competence, simple access to finance, and suitable access to capital would improve MSMEs' performance in an area, resulting in the growth of the enterprises they manage. This research found that the financial literacy level of Banyumas MSMEs is quite high, available financial inclusion is easily accessible and sufficient access to capital can help MSMEs to improve their performance so that they can increase the development of the businesses they run.

Micro, small, and medium-sized enterprises (MSMEs) during the post-pandemic economic recovery period: digitalization, literation, innovation, and its impact on financial performance

Micro, small, and medium-sized enterprises (MSMEs) during the post-pandemic economic recovery period: digitalization, literation, innovation, and its impact on financial performance

Financing for the Strengthening of SMEs, a Study in Guasave, Sinaloa, Mexico

The access to financing for SMEs is limited, posing a barrier to their growth and development. The lack of financial resources hinders their competitiveness in a globalized scenario. Therefore, the objective of this research is to describe the financial environment of micro, small, and medium-sized enterprises (MSMEs) in the municipality of Guasave, Sinaloa, Mexico. The methodology involves a literature review and is contextualized based on the business environment of the region. The results reveal a lack of information and training for MSMEs to access financing. Additionally, credit institutions perceive risks in granting loans to companies with low production levels. Faced with this scenario of limited financial alternatives, the vulnerability of this productive sector in an increasingly globalized and demanding world is evident. Consequently, there is a need to reconsider financial policies, making access to various forms of leverage an achievable alternative for this universe of companies.

Impact of Financial Literacy on Financial Decision Making of Micro, Small, and Medium-sized Enterprises (MSME) during Crisis

The current economic crisis in Sri Lanka makes the MSME sector even more vulnerable. This study intends to identify the level of financial literacy among MSME entrepreneurs and understand the impact of the current economic crisis on the financial decision-making of entrepreneurs of the MSME sector in the Northern Province. Based on a questionnaire-based survey of 150 MSMEs, the study reveals that the financial literacy rate of these MSME entrepreneurs is below 35% in the Northern province, which hurts financial decision-making and financial performance during a crisis. It was also identified that financial literacy is a better predictor of the financial behavior of MSMEs. Factors such as liquidity of the business, debt level, turnover, and profit have been negatively affected during the crisis, resulting from lack of financial knowledge, poor financial attitude, and financial behavior of the MSMEs. This study contributes to the existing literature on behavioral finance, which incorporates the level of financial literacy to the Prospect Theory, relating the two different stages of decision specifically to the MSME sector.

The Influence of Entrepreneurial Spirituality and Social Media Adoption on the Sustainability of MSME Performance Mediated by Innovation Capability (Survey on MSMEs in the Tourism Area Sunan Drajat Lamongan)

Technological advancements, computerization, and globalization have made businessescompetitiveacrossallindustries. Micro, small, and medium-sizedenterprises (MSMEs) continue to encounter difficulties with resource scarcity and technology adoption, although accounting for over 80% of employment and contributing to 61.97% of the GDP (gross domestic product). The Sunan Drajat Lamongan Religious Tourism Area is a home to hundreds of MSMEs, ranging in size from apparel and souvenir shops to restaurants. The number of visitors rises dramatically throughout the holiday season before becoming quiet, as is common with tourism in general. Entrepreneurship is a key factor in economic growth and serves as the primary driving force for innovative and long-term growth. By leveraging social media to enhance a company’s competitive advantage throughout the entrepreneurship and operation phases, entrepreneurs who possess an entrepreneurial mindset can aid their organizations in efficiently adapting their organizational framework and processes, thereby mitigating environmental conflicts and tensions within the intricate framework of a dynamic business environment. By using social media, MSMEs may reach their target audience with content and information without having to personally meet them. Social media also offers information in the form of customer reviews of goods, services, and even new ideas for sustainable MSMEs. This study aimed to determine how MSMEs’ use of social media and their ability for innovation can impact their success in Sunan Drajat Lamongan’s religious tourism industry. The data were obtained from 132 small and medium-sized enterprises using questionnaires. Path Least Square (PLS) and descriptive analysis were the methods utilized to analyze the data.
 Keywords: entrepreneurial spirituality, social media adoption, innovation capability, sustainability of MSMEs performance

A Framework for Risk Mitigation in Halal Self-Declaration for SMEs and MSMEs in Indonesia

This research examines the challenges and risk mitigation strategies associated with Halal self-declaration among Small and Medium-sized Enterprises (SMEs) and Micro, Small, and Medium-sized Enterprises (MSMEs) in the context of the forthcoming Halal certification enforcement policy in Indonesia. The study aims to enable SMEs and MSMEs to actively participate in the Halal industry, with the intent to promote economic inclusivity and ensure the accuracy, integrity, and reputation of Halal products. The research explores potential consequences such as mislabeling, cross-contamination, reputational damage, legal repercussions, negative market impact, and erosion of Halal industry credibility. In this research, a structured thematic analysis approach is conducted. The findings of the study propose risk mitigation strategies, including risk identification, framework development, education programs, accessible guidance materials, the implementation of independent verification and audits collaboration with certification bodies and regulatory agencies, awareness campaigns, and continuous improvement and evaluation. The outcomes of this research benefit SMEs, MSMEs, certification bodies, industry associations, regulatory agencies, and consumers, enhancing compliance with Halal standards, consumer confidence, and market competitiveness.

Analisis Pengaruh Keadilan Pajak, Kesederhanaan Pajak dan Pengetahuan Pajak Terhadap Kepatuhan Pajak Pelaku UMKM

The primary source of revenue for a country primarily comes from tax receipts. One of the key supports for tax revenue is the tax payments made by micro, small, and medium-sized enterprises (MSMEs). Only now, the tax payments made by MSMEs have been perceived as not contributing maximally to the state's revenue. The government has made efforts to enhance tax revenue by providing tax facilities, aiming to promote fairness and simplify tax administration for taxpayers, with the hope of achieving a sense of justice and administrative efficiency in tax compliance, which is expected to increase the willingness of taxpayers to fulfill their tax obligations. This research is conducted to determine the influence of tax fairness, tax simplicity, and tax knowledge possessed by MSME taxpayers on their compliance with tax obligations based on tax regulations. The independent variables in this study are tax fairness, tax simplicity, and tax knowledge, while tax compliance by MSME taxpayers is tested as the dependent variable. The population in this research includes 50 samples of individual MSME taxpayers in the Kramatwatu District, Serang Regency, Banten. The data collected is processed using the SPSS program with multiple linear regression analysis. The results obtained from this research show that tax fairness and tax simplicity have a significant impact on the tax compliance of individual MSME taxpayers in the Kramatwatu District, Serang Regency. In contrast, tax knowledge does not have a significant influence.

Peran Program Dumisake Terhadap Peningkatan Pendapatan UMKM dan Perekonomian Masyarakat Provinsi Jambi Masa Covid-19

The purpose of this study is to determine how the Dumisake Programme affected the MSME income and the general economy of the people living in the Province of Jambi in COVID-19. This study uses a qualitative method and is descriptive in nature. The Cooperatives Service, UMK, Jambi Province served as the research site. The Dumisake Programme, a priority programme for the Jambi Provincial Government, was used to determine the research location to examine the capital assistance programme for MSMEs. The program's goals are to enhance the regional economy, lower rates of poverty and unemployment, and ultimately improve community welfare. Through the distribution of questionnaires and in-person interviews with MSME capital assistance grantees under the Jambi Provincial Government's Dumisake Programme, primary data was gathered. Legal and regulatory records, the 2021–2026 Jambi Province RPJMD, the Strategic Plan and Work Plan of the Cooperative Service, and the Jambi Province UMK serve as research supporting data for this study. Researchers conducted direct interviews with MSME players in Jambi Province who benefited from capital support under the Dumisake Programme. Data Reduction, Data Display (Data Presentation), and Conclusion Drawing/Verification (Conclusion) were the methods used for data analysis in this study. The study's findings demonstrate that the Covid-19 Pandemic had an impact on Micro, Small, and Medium-Sized Enterprises (MSMEs) that were given support by the Jambi Provincial Government. These MSMEs considered the assistance to be highly beneficial for business development, which boosted their revenue. When it comes to helping MSME players in Jambi Province with their business growth, the Jambi Provincial Government's Economic Recovery Programme has shown to be quite beneficial in providing them with products and equipment. The assistance programme has three (three) primary objectives: achieving economic recovery; enhancing MSMEs' capacity to become resilient and independent; and putting in place efficient, transparent, effective, and targeted help channels. The Cooperatives & MSMEs Service (Government) and MSME actors are the next two players engaging in the support programme for MSME actors.

Dynamic Capabilities, Resources, and Social Capital in Creating Sustainable Competitive Strategies in Indonesian MSME

The purpose of this study is to better understand how Indonesian Micro, Small, and Medium-Sized Enterprises (MSMEs) shape sustainable competitive strategies through the interaction of dynamic capabilities, resources, and social capital. The study employed a quantitative methodology that utilized Structural Equation Modeling with Partial Least Squares (SEM-PLS 3) to extract data from a representative sample of 232 MSMEs located in different industries and geographies. The results show that social capital, resources, dynamic capacities, and sustainable competitive strategies are all positively correlated. The study also reveals the mediating functions of social capital and resources in converting dynamic capabilities into long-term competitive advantages. With a robust R-squared value and a Goodness of Fit (GoF) rating of 0.68, the model demonstrates a substantial fit, indicating its adequacy in explaining the intricacies of the MSME environment in Indonesia. These revelations have important ramifications for developing theories as well as useful tactics to raise MSMEs' competitiveness in Indonesia.

Mobile Network Operators’ Agency Banking Quality, Financial Inclusion Practices and the Sustainable Development Goals: Evidence from Cameroon

The Sustainable Development Goals were launched by the United Nations in 2015. Empirical evidence suggests that despite the excitement at their launching by the international community and other stakeholders, their attainment by enterprises is still poor. Thus, using the technology of agency banking and mediated by financial inclusion practices, this study sought to determine the role played by Telecommunication Companies (MNO) in the attainment of the Sustainable Development Goals in Cameroon. To attain this objective, the study mobilized the Baron and Kenny (1986) model in the analysis of partial mediation effect using Ordinary Least Squares Regression. The purposive sampling technique was used to engage 1,420 users of MNOs’ services from the Cameroon’s 10 regional capitals in the study. The results showed that the effect of agency banking quality on Sustainable Development goals via the financial inclusion practices (Adjusted R2) is higher for the agents of Commercial banks and Micro, Small and Medium Sized Enterprises (MSMEs) than Microfinance Institutions. Thus, we suggest that Cameroon’s public authorities should focus more on Commercial banks and MSMEs than Microfinance Institutions to increase financial inclusion and ease the attainment of the Sustainable Development Goals in Cameroon.

Persepsi Dan Minat Pelaku UMKM Pengolahan Hasil Ternak Terhadap Sertifikasi Halal Di Kota Kediri

Kediri City is considered to have significant potential for developing a halal market industry. The Muslim population in Kediri City is reported to be 271,215 according to the 2022 data on Subdistricts and Religions Practiced in Kediri City. With the majority of the population in Kediri City being Muslim, this presents a great opportunity for micro, small, and medium-sized enterprises (MSMEs) to continue developing their products to meet the community's needs for halal products in Kediri City. This research aims to understand the perceptions and interests of MSMEs players in livestock product processing regarding halal certification in Kediri City, using a qualitative method. Sample selection for this research utilized purposive sampling and snowball sampling. There were two types of informants in this study: 2 (two) expert informants, consisting of the Cooperative and MSMEs Office and the local Ministry of Religion, and 10 (ten) key informants, namely MSMEs actors in livestock product processing business. According to Article 4 of the UUJPH (Halal Product Assurance Law), products entering, circulating, and traded in Indonesia's territory must have halal certification. The halal label can have a positive impact on businesses as it is considered to enhance consumer trust in products with the halal label. Based on the research results, MSMEs players in livestock product processing business in Kediri City feel a lack of knowledge due to the government's insufficient comprehensive dissemination to every element of society.

The Effect of Green Marketing, Sustainable Market Research, and Consumer Engagement on Brand Loyalty and Consumer Legitimacy in MSMEs in Indonesia

The purpose of this study is to examine how consumer involvement, sustainable market research, and green marketing strategies affect brand loyalty and customer legitimacy in Micro, Small, and Medium-sized Enterprises (MSMEs) in Indonesia. Structural Equation Modelling (SEM) with Partial Least Squares (PLS-SEM) as the analysis approach was used in a quantitative analysis including 238 MSMEs from various industries and geographies. The study's sustainable practices have a strong positive correlation with both customer legitimacy and brand loyalty, according to the findings. The results underline the significance of sustainability in building legitimacy and loyalty among consumers as well as the mediating function that these practices have in influencing consumer views. Actionable insights for MSMEs, policymakers, and researchers are provided by the discussion of the practical and policy implications.

Kinerja Usaha Mikro Kecil dan Menengah (UMKM) Makanan Binaan Pusat Layanan Usaha Terpadu-Usaha Mikro Kecil dan Menengah (PLUT-UMKM) di Kota Bandar Lampung

Micro, Small, and Medium-Sized Enterprises (MSMEs) are productive businesses owned by individuals or legal entities that meet the requirements of a business. Micro- and small-sized businesses continue to confront a variety of financial and non-financial issues. Therefore, to encourage improved business performance, MSMEs are provided with coaching and/or mentoring by the Integrated Business Service Center-Micro, Small and Medium Enterprises (PLUT-UMKM). Most of the MSMEs assisted by PLUT-UMKM in Bandar Lampung City are food MSMEs. The focus of this study is to determine the achievement of PLUT-UMKM coaching targets, determine the performance of MSMEs, and analyze the effect of achieving PLUT-UMKM coaching targets on MSME performance. The method used in this research is a survey. The sampling technique in this study used proportional stratified random sampling. The data collection method used was interviews. This research employs quantitative descriptive analysis and multiple linear regression analysis to analyse the data. The results of this study indicate that the achievement of PLUT-UMKM coaching targets is in the good enough category, the performance of MSMEs assisted by PLUT-UMKM is in the good category, and the variables that have a significant effect on MSME performance are the variables of access to financing and business networks.

Green Growth and Beyond: The Influence of Environmental Practices, Financial Management, Market Access, and Digital Integration on the Resilience and Sustainability Business Practices of MSMEs in Indonesia

This study looks into how market accessibility, digital integration, financial management, and environmental practices affect the sustainability and resilience of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Indonesia. Data analysis is done using Structural Equation Modeling with Partial Least Squares (SEM-PLS) in a quantitative manner using a sample of 274 MSMEs. The diversity of the sample with respect to industry sectors, geographic regions, and company sizes is demonstrated by descriptive statistics. The structural model findings show positive and substantial correlations between the elements under investigation and company resilience and sustainability, while the measurement model analysis validates the validity and reliability of the constructs. The results are stable, as supported by bootstrapping analysis, and the model fit indices show good predictive relevance. The findings are interpreted in the discussion, which also provides policymakers and business practitioners with useful insights. The study adds to our theoretical understanding of MSME dynamics and offers guidance on how to develop resilient and sustainable business practices.

Credit counselling: a contemporary strategy for survival of micro small and medium-sized enterprises in under-developed financial markets post COVID-19 pandemic

PurposeThe main purpose of this paper is to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of micro small and medium-sized enterprises (MSMEs) in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.Design/methodology/approachStructural equation modelling (SEM) through SmartPLS 4.0 was used to generate the standardized parameters to test whether credit counselling mediates the relationship between access to microcredit and survival of MSMEs in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.FindingsThe SEM bootstrap results revealed that credit counselling enhances access to microcredit by 27% to promote survival of MSMEs in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.Research limitationsThe current study focused only on women MSMEs. Future studies may possibly collect data from all the MSMEs to draw better generalization of the findings within the sector.Practical implicationsThe findings can help public finance policy to ensure provision of credit counselling to microentrepreneurs who borrow from different financial institutions to reduce the problem of loan defaults and delinquency rampant in lending. This could be done through conducting routine business education and counselling sessions for microentrepreneurs who often need credit to grow their businesses.Originality/valueThis study is amongst the first few studies to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of MSMEs in developing countries in sub-Saharan Africa in the aftermath of COVID-19 pandemic with data collected from rural Uganda. There is a dearth in literature and theory on the rehabilitative and preventive role of credit counselling in reducing repayment defaults amongst borrowers within the credit market to spur survival of MSMEs seen as the main enabler of economic growth, especially in developing countries. In fact, credit counselling acts as a safety net by substituting financial literacy and education to solve the rampant problem of overindebtedness amongst borrowers who are debt illiterate within the credit market.

Evaluating the social performance of Ecuadorian textile MSMEs using Social Organizational Life Cycle Assessment

Integrating sustainability into Micro, Small, and Medium-sized Enterprises (MSMEs) poses challenges due to limited resources, low social awareness, and particular cultural factors. Despite this, MSMEs play a crucial role in countries' development since they constitute an essential actor in generating wealth and employment. Therefore, determining tools and methods to support sustainable decision-making and understanding the impacts in MSMEs is a significant challenge. This work describes the application of Social Organizational Life Cycle Assessment (SO-LCA) in three case studies of the Ecuadorian textile MSME sector to analyze their impacts regarding the social dimension. To this end, 121 inventory indicators linked to workers' and consumers' subcategories were applied. Utilizing sunburst charts, social performance is analyzed at subcategory and indicator levels. Company A showed intermediate worker performance with well-managed Occupational Safety and Health (OSH). Company B excelled, particularly in OSH, social benefits, and working hours. Despite its size, Company C had the lowest overall performance but exhibited superior Consumer category performance. This application of SO-LCA in the MSME sector offers insights for systematic evaluation, identifying areas for improvement and commendable practices. The study discusses implementing SO-LCA in small firms, highlighting the need for methodological adjustments to enhance applicability in this sector.

Assessing economic implications for micro, small and medium enterprises in Thailand post Covid-19 lockdown.

Micro, Small, and Medium-sized Enterprises (MSMEs) in Thailand were assessed in this study to determine the short-term and long-term economic effects of post-COVID- 19 -, with the goal of developing policy guidelines that focus on the methods and strategies that will further develop and help recover these sectors. MSMEs are the most vulnerable and require assistants to combat the pandemic. This study assesses the perspectives of stakeholders on the development of mechanisms and the strategies applied to support vulnerable groups in Thailand, which mostly consist of women and children. The main data collection was gathered through online questionnaires that were distributed to various stakeholder groups. The tools used for analysis were advanced quantitative analysis tools that aid in achieving this research study's objectives, and data was examined primarily through the usage of path modeling, structural equation modeling (SEM), and descriptive analysis was among the methods used. The findings reveal that in the short term, MSMEs' ability to respond to COVID-19 implications has a significant impact on both financial and non-financial performance. Non-financial performance, on the other hand, is more affected by adaptability than financial performance. Demand shock from lockdowns and other COVID-19 cautionary interventions has a negative and significant impact on MSMEs' adaptability, financial performance, and non-financial performance. The demand shocks increased the vulnerability of MSMEs significantly but it was found that proper management of demand shock has helped stabilized and improve MSMEs' financial and non-financial performances, as well as helped decrease their vulnerability. When it comes to government policy, the focus is usually on enhancing the flexibility and financial performance of MSMEs. The government's legislative actions have little impact on MSMEs' non-financial performance and vulnerability. This could be because the majority of the programs are more focused on providing financial assistance to businesses or their consumers. COVID-19's supply and demand shock only hindered MSMEs' ability to respond to the changes and challenges caused by the pandemic, according to vendors. The vulnerability of MSMEs caused by COVID-19 creates grave effects on their financial performance. The findings of this research paper will assist policymakers in identifying the most vulnerable aspects of MSMEs, as well as their expectations- and determine the forms of support that will be required to combat the current and future pandemic situations that may occur in Thailand. In addition, it will aid policymakers in the establishment of procedures and supporting strategies for MSMEs to reduce the unemployment rate and stimulate the Thai economy, among other factors of improvement.

Navigating the Business Landscape: The Influence of Infrastructure, Financial Inclusion, Innovation, and Government Policy on Indonesian MSMEs

The performance of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Indonesia is examined in this study in relation to a number of different influences. A quantitative examination of 255 MSMEs from various industries, geographies, and sizes is carried out, with an emphasis on the interplay of infrastructure, financial inclusion, innovation, and government policy. In order to investigate the direct and intermediary links between these important determinants and MSME performance, structural equation modeling was employed in the study. The results revealed a strong positive correlation between the variables, demonstrating the critical role that government policies, infrastructure, financial inclusion, and innovation play in fostering business success. Financial inclusion plays a mediating role, and mediation analysis clarifies the contextual elements influencing the connections that are seen. By providing practical insights for business leaders and policymakers to navigate and enhance the business environment, this research advances our understanding of the intricate dynamics inside Indonesia's MSME sector

FOOD AND BEVERAGE PURCHASING DECISIONS IN THE MALANG MSME SECTOR ARE INFLUENCED BY THE HALAL LABEL AND PRODUCT QUALITY

The most significant economic pillars supporting Indonesia's development and growth are Micro, Small, and Medium-Sized Enterprises (MSMEs), particularly in the Malang region. In recent years, Malang's MSMEs business sector has grown significantly. Meeting the rising needs of consumers is essential for MSME firms to succeed. In this situation, it's critical for MSMEs to secure halal certification for their goods and goods with quality assurance. The goals of this study are to: (1) ascertain the impact of halal labels on consumer decisions regarding food and beverage products in the Malang MSME sector; (2) ascertain the impact of product quality on consumer decisions concerning food and beverage products in the Malang MSME sector; and (3) ascertain the impact of both halal labels and product quality at the same time. The sample in this study consists of 70 individuals, with the population in this study including all customers who buy and consume halal-certified MSME food and beverage goods in Malang. Multiple linear regression analysis is the data analysis technique employed in this study. The study's findings indicate that the product quality variable has a tcount of 1.107 and a significance level of 0.272 above 0.05, whereas the halal label variable has a tcount of -0.251 and a significance level of 0.803 above 0.05.

Agency Banking and Poverty Reduction in Plateau State

This study delves into the potential of agency banking to alleviate poverty in Plateau State, a region primarily reliant on agriculture and grappling with a high poverty rate, along with a sizable unbanked population. The research aims to investigate the correlation between agency banking and poverty reduction in Plateau State. Employing a descriptive survey design, the Taro Yamane formula was used to select a sample of 360 participants who were First Bank Plc agents. Quantitative analysis techniques, including descriptive statistics (percentages, mean, and standard deviation) and multiple linear regressions with SPSS 25.0, were employed to test the study's hypotheses. The results of the statistical analysis revealed that the income of agents has a significant impact on poverty reduction. Furthermore, the study found that the transaction volume of agents also significantly contributes to poverty reduction in Plateau State. However, it is important to note that the educational level of agents did not show a significant effect on poverty reduction in the state. As a result, the study recommends that banks operating in Plateau State should seize the opportunity presented by agency banking to reach the rural population, aligning with the Central Bank of Nigeria's (CBN) National Financial Inclusion Strategy (NFIS). This strategy emphasizes targeting women, rural areas, youth, Northern Nigeria, and micro, small, and medium-sized enterprises (MSMEs) to achieve a high level of financial inclusion, ideally reaching a 99% financial inclusion rate by 2030. In addition to promoting agency banking, the study suggests creating awareness of financial literacy in rural areas. This awareness campaign aims to educate the long-standing unbanked population on the benefits of banking services facilitated through agent banking, thereby fostering a more inclusive financial landscape.