Micro Small Medium Enterprises Research Articles

Determining Factors of Financial Performance Recovery in BRI During the Covid-19 Pandemic

Bank Rakyat Indonesia (BRI) succeeded in loan restructuring in the Micro Small Medium Enterprises (MSMEs) segment. Loan restructuring has succeeded in pushing BRI to achieve the highest financial performance. This study aims to determine the success factors of BRI's loan restructuring. The research object is the Credit Restructuring and Recovery Division. This study applies a qualitative case study. Interviews and documentation were used to collect the data. The findings indicate that the critical success factor in dealing with the crisis is ability to adapt to policies change. The debtor's criteria and loan restructuring cycle are critical success factors of BRI's loan restructuring before the restructuring policy is set. The combination of three main components, namely interest rates, extending loan terms, and payment delays, are a determining factor for the success of loan restructuring. There are five components that support the success of loan restructuring, namely loan marketing, loan guarantee, personal values, information and communication, and other party cooperation.

THE PROCESS OF MAKING BATIK AND THE DEVELOPMENT OF INDONESIAN BAKARAN MOTIFS

Batik is one of the original handicrafts recognized by UNESCO as Indonesia's cultural heritage. Therefore, this research aims to explore the development of good quality innovative Indonesian batik designs for Micro, Small Medium Enterprise (MSMEs). This is practice based research with data collected through observation and interviews. The result showed that the designs of Bakaran motifs contain elements of the Pati city history, Central Java, Indonesia. The making of batik motif in this research also went through digitalization process for the efficiency of making the next batik. Therefore, the international community is expected to determine the beginning and ending process used by Micro, Small Medium Enterprise (MSMEs) craftsmen in producing good quality batik. Further research needs to be carried out to explore the development of batik Bakaran designs using Druju (Acanthus ilicifolius) flower motifs.

THE INFLUENCE OF STAKEHOLDER ENGAGEMENT AND TRANSFORMATIONAL LEADERSHIP ON BUSINESS SUSTAINABILITY

This research is motivated by the low sustainability of soybean-based MSMEs (Micro Small Medium Enterprises) in West Java. This is due to the low long-term value given to stakeholders in the economic, social and environmental dimensions and the less-than-optimal role of leaders in realizing business sustainability. The purpose of this study is describing the business sustainability, stakeholder engagement, transformational leadership and analyzing the effect of transformational leadership and stakeholder engagement on business sustainability. This research was conducted using a survey method on 254 soybean-based SMEs consisting of tempe, tofu and soy sauce craftsmen in West Java. Data was collected by distributing a questionnaire, interviewing and observations of the unit of analysis. The data that has been collected was analyzed using structural equation modeling (SEM) analysis techniques. The results of this study stated that the business sustainability of soybean-based MSMEs was actually better in the social dimension and relatively less in the environmental dimension. The ability of transformational leaders to influence their employees to achieve goals is the highest ability, while the ability of forward-looking is the lowest than other dimensions. In building stakeholder engagement, the leader's ability to build trust is the highest, while business openness is the lowest compared to other capabilities. In this study, transformational leadership and stakeholder engagement affect business sustainability partially and simultaneously.

MSMEs Business Sustainability Models in Indonesia

Business environment is very uncertain. To remain competitive, the RBV theory suggests that human resource is the most important resource for sustainable competitive advantage. The current global competition and the constantly changing environment requires all businesses respond accordingly. The research emphasizes on the MSMEs business sustainability models in Indonesia that integrated Green HRM, personal values, green organizational culture and competitive strategy to business sustainability. The study will empirically test the model in the MSMEs creative industries in Daerah Istimewa Yogyakarta and Central Java Province, Indonesia. The respondents of this study are the owners and managers of creative Micro Small Medium Enterprises (MSMEs) chosen by purposive sampling method. The data analysis technique is using AMOS 23. The results show that business sustainability model in creative MSMEs by considering Green HRM, personal values, green organizational culture, and competitive strategy is not yet be able to be implemented.

The Effect of Savings Growth, Deposits, Credit, Credit Interest Rate and Cash Turnover on Profit Growth in Savings and Loans Cooperative in North Denpasar Year 2017 – 2019

This study aims to examine and obtain empirical evidence from the effect of savings growth, deposits, credit, credit interest rates and cash turnover on profit growth in Savings and Loans Cooperatives in North Denpasar in 2017-2019. The population of the data in this study were all Savings and Loans Cooperatives located in North Denpasar and registered with the Denpasar City Cooperatives and Micro Small Medium Enterprises (MSME) Service in 2017-2019. The sample were select by used purposive sampling method. The sample in this study were 16 cooperatives with 48 observations. Multiple linear regression analysis is needed to process the data in this study. And the research results are obtained as follows: saving growth variable, deposit growth and cash turnover have no effect on profit growth, while credit growth and credit interest rates have a positive effect on profit growth. The implication of this research is that the sample selection is limited to one area, namely North Denpasar, so the results cannot be generalized and are limited to the form of savings and loan cooperatives only.

Towards Longevity: Managing Innovativeness in Family Micro-Small-Medium Enterprises

This article explains the family and business strategies that the Micro-Small-Medium Enterprises (MSMEs) implement to dodge the ability-willingness paradox. The majority of the MSMEs in the metropolitan region of Jakarta are in their comfort zone. Only 15.90% utilize the Internet and 8.53% utilize the computer. According to the researchers' survey, most family businesses highlighted business longevity and emphasized the importance of technology and information. However, family MSMEs are still trapped in the ability-willingness paradox despite recognizing the importance of innovation. This study sampled five family MSME cases that are considered sustainable due to their innovativeness. It then investigated them by in-depth semi-structured interviews, observations, and field notes to explore how they strategize to employ innovativeness. The results signify the founders’/incumbents’ receptiveness towards innovations in the business. It also signifies the stakeholders’ contributive insights and the imposition of operations systemization. These findings stipulate the fundamentals for families in their MSMEs to engage in innovative activities that influence the longevity of their firms. This study concludes by recommending avenues for future research. Keywords: family business, micro-small-medium enterprises, innovativeness, strategy, case studies

The Effect of Perceived Usefulness and Perceived Easiness towards Behavioral Intention to Use Fintech by Indonesian MSMEs

The research aimed to test how are Micro Small Medium Enterprise (MSMEs) acceptance towards financial technology fintech). The number of MSME that using fintech is still need to be maximized. MSMEs were chosen as research object due to their numerous contribution in gross domestic product (GDP). Therefore, it was considered important to understand MSME’s notion to use fintech in their business operation, which is wellknown that financial technology could give a lot of services which may improve MSMEs performance. The research adopted the technology acceptance model (TAM) theory to determine the effect of the variable perceived of usefulness and perceived ease of use on behavioral intention to use fintech services by MSME entrepreneurs. Technology acceptance model had been the most widely applied model to measure and analyze a technology's use and acceptance. The descriptive quantitative research was applied. The analysis using multiple linear regression tests on 60 respondents. Respondents were managers of MSMEs who use financial technology services in their business operations in any form. Classical assumption testing was carried out to meet the requirements of multiple linear regression analysis. The data met the criteria for multiple linear regression. The results reveal that perceived of usefulness and perceived ease of use variables simultaneously affect the behavioral intention to use financial technology services. Partially, perceived of usefulness affects behavioral intention to use, as well as the perceived ease of use affects behavioral intention to use financial technology services.

The Moderating Role of Financial Accessibility in Relationship between Resource Competence, Entrepreneurial Leadership, Good Governance and Performance of Micro Small Medium Enterprises in Batam, Indonesia

The purpose of this study is to determine the relationship of resource competence, entrepreneurial leadership and good governance towards business performance and examine the moderating role of financial accessibility to the business performance of Micro Small Medium Enterprises (MSMEs). This quantitative research involved 155 professional business women community (MSMEs), Batam, Riau, Indonesia. The data collected through a survey questionnaire with a non-probability sampling technique. The data analysed by using the structural equation modelling – partial least square (SEM-PLS). This study showed that resource competence, entrepreneurial leadership, and good governance have a significant positive relationship with Micro Small Medium Enterprises (MSMEs). Also, financial accessibility moderates the relationship between entrepreneurial leadership and performance. In conclusion, this study has successfully identified the determinant factors that affect the business performance and moderating role of financial accessibility on business performance for Micro Small Medium Enterprises (MSMEs).

Industrial Case Study on Lean Manufacturing Implemented on Manufacturing Polypropylene Ropes Industry Amravati

Abstract: Lean manufacturing has been one of the most standard method in the manufacturing and service industry for elimination of waste. Every manufacturing industry has to put in continuous effort for its survival in the current impulsive and competitive economy. The purpose of this paper is to investigate the adoption of lean manufacturing tools and techniques in the manufacturing industries. This paper is based on actual implementation of lean manufacturing techniques. It focuses on the execution of flow from the start until the end of the implementation, types of analysis and tools applied, evaluation methods and how the industry benefited from the implementation. In this case study we particularly focused on Shop floor management, Quality Management (QM), Supplier and Customer Management (SCM) and Workforce Management (WM). After going through various testing on implementation of Lean Manufacturing principles in Micro Small medium Enterprise (MSME), researcher studied thoughts of some author where they discussed pragmatic problems they overcome while implementing lean principles in developing economies MSME. At the end, the result shows that there is monthly increment in capital productivity and labour productivity. And decrement in inhouse rejection, breakdown hours and customer complaint from the implementation of lean.

Do risk attitude and trust moderate bank managers' risk perceptions in lending to micro, small, medium enterprises?

PurposeThe purpose of this research is to study the antecedents of risk perceptions of bank managers towards micro, small, medium enterprise (MSME) lending, in the situation of information asymmetry, where cognitive factors assume significance over organisational norms of lending.Design/methodology/approachThis study proposed and tested a conceptual model based on the factors identified from literature review and exploratory and quantitative study. Multinomial logistic regression technique is used for quantitative analysis.FindingsThe research postulates that information asymmetry, risk attitude, perceived trust and organizational norms have a significant relationship with branch managers' perceived risk in lending to MSMEs. The research emphasized that the risk attitude of managers and perceived trust moderate the relationship between information asymmetry and perceived risk. The findings and discussions enrich the knowledge about the alleviators of constraints to MSME funding in developing nations despite information asymmetry.Originality/valueAuthors have given holistic view on the risk perception in the financial decision-making process of bank lending. The research highlights the importance of cognitive factors in decreasing the negative impact of information asymmetry on risk perception.

Pengaturan Kaidah Manajemen Risiko Atas Penawaran Saham Berbasis Teknologi Informasi (Equity Crowfunding) untuk Pengembangan UMKM di Indonesia

Indonesian Government has already put a substantial attention on the development of MSMEs (micro, small, medium enterprises) since the new order regime with regard to the huge number of businessmen and labors involved. Financial technology industry in Indonesia including ECF grows rapidly in recent years but still not supported by a specific constitutional legal standing yet. As part of financial technology products, ECF has been regulated by Indonesian Financial Services Authority in regulation No.57/POJK.04/2020. ECF becomes one of the potential funding sources option for the development of MSMEs and also one alternative for investment purposes in which the issuer offers the sales of equity directly to the investors by using the open network electronic systems. This normative juridical study is aimed to identify the regulation related to risk management, to identify risks in Indonesian ECF’s platform business and risk management regulation setting direction in the future. The aforementioned regulation did not provide risk management guidance for ECF platform. By adopting to the ECF’s platform systematic and comprehensive taxonomy of legally mitigated risks model proposed by Podar Manan et al., the researcher finds at least 12 major risk classification with 42 risk events in Indonesian ECF industry that have to be mentioned and mitigated by the ECF platform. Investors in ECF platforms are exposed to at least 10 risk classification that also have to be considered. Especially for legal risk issues, the researcher identifies at least 11 risk events along with its mitigation initiatives which can be used as reference for the ECF platform.

Determinan adopsi e-commerce dan dampaknya pada usaha mokro kecil dan menengah (UMKM)

This study aims to determine the effect of organizational readiness, technological readiness and the external environment on e-commerce adoption and the effect of e-commerce adoption on the performance of MSMEs (Micro Small Medium Enterprises) in Sleman Regency. The sampling method used is purposive sampling. The data used in this study is primary data with data collection techniques using questionnaires. Hypothesis testing tool using SEM-PLS. Analysis of research data involving 150 in Sleman Regency. The results of hypothesis testing indicate a significant influence between organizational readiness on e-commerce adoption, technology readiness on e-commerce adoption, external environment on e-commerce adoption, and e-commerce adoption on MSMEs performance,

Cooperative Development Model in Strengthening MSMEs in Tasikmalaya City

Micro Small Medium Enterprises (MSMEs) are very necessary because MSMEs are able to absorb a lot of jobs. However, the most basic problem faced by MSMEs is capital. Cooperatives as a people's economic movement are expected to solve the MSMEs problems. Therefore, cooperatives need to get development in order to be strong and independent. The purpose of this study is to find out how the development of cooperatives is carried out by the Tasikmalaya City Government in strengthening MSMEs. The research is supported by the theory of development, cooperatives and MSMEs. A qualitative approach was used in the study, with data collection techniques through interviews, observations and documents review. The results showed that the development of cooperatives by the Tasikmalaya City Government was not optimal, so the cooperatives in Tasikmalaya City had not played a maximum role in strengthening MSMEs. For this reason, the Tasikmalaya City Government needs to implement a partnership model with State-Owned Enterprises and Regional-Owned Enterprises to participate in developing cooperatives collaboratively.

The Role of Micro Small Medium Enterprises (MSMEs) In Halal Industry Enhancement (Case Study of MSMEs in Lhokseumawe – Aceh)

AbstractPurpose – This study examined the role of MSMEs in encouraging the halal industry and aimed to determine the problems of MSMEs in supporting the halal industry in Lhokseumawe..Methodology - This study used primary data of qualitative study with descriptive data analysis from five interviewees as an owner of food and beverage MSMEs sector in Lhokseumawe-Aceh. The research method used is a case study approach. Data collection techniques used were interview, observation, and documentation, and data analysis techniques used in this study with data reduction, data presentation, conclusion, and triangulation stages. Findings - The results showed that the role of MSMEs in encouraging the halal industry was relatively low due to the lack of knowledge and awareness of MSME actors in Lhokseumawe city about halal certification that provides services to MSMEs.Keywords: Islamic Economics, Micro Small Medium Enterprises (MSMEs), Halal Industry, Qualitative Method, Consumer Satisfaction

Empowerment of Micro, Small Medium Enterprises (MSMES) in Coconut Oil Development

Entrepreneurship development at the household level is the forerunner to the growth of an MSME. In the village of Antiga, Manggis District, Karangasem Regency, there is a home-based business engaged in the production of coconut oil (kelentik oil). Currently the level of marketing is only limited to traditional markets while the target is to be able to market products in modern markets. Therefore, this study has the objective to know the level of efficiency of production costs incurred by the producers of coconut oil (kelentik oil) in Antiga village, Manggis district, Karangasem regency; to know how to empower Micro, Small and Medium Enterprises producing coconut oil (kelentik oil) and to analyze the factors that influence the intention of buyers or consumers to buy coconut oil (kelentik oil) in Bali. The research method is a qualitative method. The result is that the production process is still traditional so that production cost efficiency is achieved. Furthermore, the empowerment of MSMEs is not yet optimal as business partners in marketing their products. Several factors influence consumers' intention to buy coconut oil (kelentik oil). So the input that can be given is to improve relationships or networks to be able to expand the market and improve product packaging.

ALTERNATIF UPAYA KETAHANAN PELAKU HOME-BASED ENTERPRISES (HBE) BATIK PADA MASA PANDEMI COVID-19 DI KAMPUNG BATIK SEMARANG

The Covid-19 outbreak has had an impact on the national and international economic sectors. Various problems that arise, one of which is in the Micro, Small, Medium Enterprises (MSME) sector due to a decline in buyer demand, supply constraints, and export orders that can cause businesses to run into a deficit. Whereas MSMEs absorb workers up to 90% on a national scale and the informal sector plays a role in the movement of the national economy up to 60%. Thus, a strategy is needed by business actors in an effort to survive Home-Based Business (HBE) / home-based MSMEs during the Covid-19 pandemic in Kampung Batik Semarang. The method used in this research is descriptive quantitative analysis with primary and secondary data collection. The Sustainable Livelihood Approach (SLA) approach as an introduction to describe the conditions of batik HBE during the Covid-19 pandemic and to support subsequent analysis to obtain results in the form of alternative efforts to resilience for batik HBE actors during the Covid-19 pandemic using the Analytical Hierarchy Process (AHP) analysis method. In this study, the condition of HBE was explained and with AHP analysis, the highest weight was obtained, namely by carrying out a digital marketing strategy of 24%, which means that it is the main alternative in efforts to maintain batik HBE during the Covid-19 pandemic. Furthermore, the second highest weight is promotion with a weight of 22.4%, followed by product lines at 21.2%, then taking action at 19.1%, and business consolidation is in the last rank at 13.3%. This research can be a recommendation to the Semarang City Government in making policies related to the development of MSMEs.

The Effect of Perceived Security towards Intention to Use Digital Payment through a Trust

The purpose of this study was to determine the influence of perceived security on trusts and their impact on intention to use digital payments. The study used causal studies to determine intervariable influences. The population used in this study is Micro Small Medium Enterprises (MSMEs) actors in the culinary and fashion fields in the city of Bandung who have not implemented digital payment in carrying out their business activities. The type of data used is primary data collected through instruments in the form of questionnaires, then the data is processed using statistical analysis tools. The results showed that perceived security had a positive and significant effect on trust. Then, trusts have a positive and significant effect on intention to use and trusts can mediate the perceived security influence on intention to use. These results show that the perception of MSMEs who consider digital payment safe to use in making transactions, will increase their trust in digital payment services, which are ultimately going to encourage interest in using digital payments. Therefore, it is important to pay attention to perceived security variables and trusts to be able to influence the intention to use digital payment to MSMEs in the city of Bandung

Collaborative governance in increasing the competitiveness of Micro Small Medium Enterprises (MSMEs) through the Jakpreneur program

Based on the 2016 Economic Census, the number of businesses in DKI Jakarta has reached more than one million businesses, or 98.78%. The potential of MSMEs is able to reduce the unemployment rate and can drive the wheels of the Indonesian economy and DKI Jakarta specifically. However, in the current conditions, MSMEs in DKI Jakarta still have many limitations in terms of management and empowerment. Therefore, the DKI Jakarta Provincial Government created the JakPreneur Program to help MSMEs advance to class to be competitive and maintain their business. The DKI Jakarta Provincial Government embraces stakeholders to collaborate in developing the JakPreneur Program. The purpose of this study is to describe precisely the process and form of collaboration through the approach of collaborative governance in the JakPreneur Program and provide recommendations for program improvement. This study used a post-positivist approach with a qualitative method through interviews and literature study. The results of this study indicate that the collaboration process takes place effectively between the relevant stakeholders. The collaboration formed in this context is represented by implementing a number of activities from the P1-P7 stages of the JakPreneur program.

The Role of Competence on The Leadership Effect on Employee Performance of Micro, Small and Medium Enterprises

This study aims to describe leadership, competence, and employee performance; analyze the influence of leadership on employee performance in Micro Small Medium Enterprises (MSMEs) both directly and through employee competence as a mediating variable. Data collection used a survey method, with a questionnaire as a tool. The population is employees in MSMEs. The sampling technique used purposive sampling with a total of 83 respondents. The analytical method used is a Scale Range and path analysis with the Smart PLS3 program. The results of the study showed that leadership is very good, the competence and performance of employees are very high; leadership has a significant effect on employee performance directly, as well as through competence mediation variables.

The Effect of Sharia Financial Access & Financial Literation to Non-Bankable MSME’s Growth


 A number of Islamic financial institutions able to provide non-bankable requirement by limiting loan plafond in order to reduce credit risk. That condition can hamper Micro Small Medium Enterprise (MSME)’s growth. This is proven by only 13.21% of MSME that only have been served by obtaining access to Islamic finance. Study about MSME’s Growth have general purpose to analyze interaction between Financial Literacy and Sharia Financial Access to Finance to MSME’s Growth. This study adopted quantitative research design and used Structural Equation Model (SEM) analysis method by SmartPLS 3.0 to run the data. Population in this research was all MSME’s actor in Semarang that put 100 samples contributing in this research by convenience technique. The finding of the research found Financial Literacy and Access to Sharia Finance affect performance, Financial Literacy affects Access to Sharia Finance and financial Literacy cannot be mediator for the relationship between Access to Sharia Finance to MSME’s growth.