Micro Small Medium Enterprises Research Articles

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.

Utilization of E-Commerce in Efforts to Increase Sales of Micro Small Medium Enterprises (MSMEs) in Kelurahan Kampung Empat, Tarakan City.

Currently, information technology has become a necessity that organizations or companies must own to improve each service produced. The growing evidence of this and the easy role of information technology and information systems among organizations for large businesses and many Micro, Small, and Medium Enterprises (MSMEs) can survive in the face of increasingly fierce competition today.
 Tarakan City Statistics in 2020 recorded as many as 13,427 MSMEs spread in Tarakan City. These data indicate an increase in the number of SMEs in Tarakan City. The number of new businesses emerging requires these business actors to survive and compete to maintain the sustainability of their business.
 The outputs produced in this PKM activity include 1) Increased knowledge and ability of the community regarding online-based technology, especially the online shop for Micro, Small, and Medium Enterprises (MSMEs) in the Kampung Empat area ​​Tarakan City. 2) Micro, Small, and Medium Enterprises (MSMEs) have online stores that they can manage independently. 3) Micro, Small, and Medium Enterprises (MSMEs) can be more motivated to understand the use of existing technology. Business people can increase their business activities (buying and selling), either their products or outside products from online stores.

The model of eco-friendly packaging center to increase the competitiveness of MSMEs’ local products

Packaging problem is still a weak point for Micro Small Medium Enterprises (MSMEs). This is due to the lack of understanding of MSME about the importance of image, quality, and packaging appearance. This research is a solution to increase the competitiveness of local MSME products in the global market with a focus on the study to identify the internal and external factors that affect eco-friendly packaging for MSMEs, formulate a strategy to develop a packaging center, and create a model for environmentally friendly packaging development center for processed food MSME products. The Model of Eco-Friendly Packaging Center is an effort to increase the competitiveness of local MSMEs that provide services as an information center for packaging activities, a packaging material procurement center, an eco-friendly product packaging service center, a graphic design mediator and packaging form design, and branding.

Multiplatform-Based Digital Market Designs as Marketing and Sales Media of MSME Products in Pleret Village

Purpose : This study aims to design a multiplatform-based digital market to help rural MSMEs (Micro, Small, Medium Enterprises) market and sell their products in order to increase the competitiveness of MSMEs.Design/methodology/approach : The design of the digital platform of Ngedolke.com used a design thinking strategy. This study used the black box method to test the functional suitability of the developed application.Findings/result : This study produces an analysis and system design that is used to develop the digital platform of Ngedolke.com. Thus, it can be used to develop the system further.Originality/value/state of the art : The difference between this study and previous studies lies in the use of system design of a design thinking strategy. Besides, the technology used is multiplatform-based.

Pelatihan dan Pendampingan Digital Marketing bagi UMKM Jasa Laundry menuju UMKM Go Digital

The COVID-19 pandemic has had a significant impact on Micro Small Medium Enterprises (MSMEs), especially laundry services in Plosokandang, Tulungagung Regency. Their primary customers, college students, no longer use their services because of online teaching and learning. The use of social media digital marketing is one solution to promote products and services. Unfortunately, many MSMEs lack this skill. This community service project focuses on training and assisting MSMEs in designing digital marketing content and posting them on their official social media. Canva software was chosen as a tool for content creation because it is simple and quick to use, with minimal design capabilities. Canva offers ready-made templates, so users only need to add their own personal touches. Then, the content is shared on the official social media accounts (Instagram or Facebook Pages). Participants’ and partners’ knowledge and skills improved after following the training. The average increase in participant knowledge of Canva material is 18.62 points, while social media material is 10.79 points. These training and mentoring activities have a positive impact on skills and knowledge related to using Canva and social media for digital marketing. Another effect of digital marketing on social media is an increase in revenue turnover, customer numbers, customer reach, and market sectors.

Barriers to product innovation among the manufacturing micro, small and medium enterprises in Malawi

Most micro, small, medium enterprises in Malawi struggle to grow and survive despite their critical role in the socio-economic development of the country. One major contributing factor is their inability to innovate. This study was therefore aimed at investigating the innovation barriers affecting the manufacturing MSMEs. The study was conducted among the 45 manufacturing MSMEs operating in the Malawi’s commercial city of Blantyre. The study adopted a case study approach and employed both quantitative and descriptive approaches. Empirical data was collected using a semi-structured questionnaire and one- on- one interview. The results of the study revealed that factors such as market competition, difficulty in accessing loans, inadequate government support, labour laws, taxes and regulations in the external environment, and inadequate financial resources, lack of qualified personnel, and poor financial performance within the enterprises hamper innovation activities within the MSMEs. Results of the study also revealed that despite government efforts to promote MSMEs innovativeness, most MSMEs do not participate in such government interventions and worse still some are not even aware of the existence of such interventions. The study therefore recommends that government should intensify its efforts to provide financial support in form of soft loans, entrepreneurial training to MSMEs and promote innovation in MSMEs through relevant policies. Key words: Micro small medium enterprises (MSMEs), innovation, barriers, manufacturing.

The Application of Environmental Responsibility in Restaurant MSMEs in Bekasi Regency

<p>In addition to the advancement of manufacturing industries, Bekasi Regency also has culinary as supporting industry. It is undeniable that culinary is indeed one of the mainstays of business in Indonesia. Seeing the other side of the culinary business, it turns out that the culinary business has a fairly serious risk to the environment. FAO (Food and Agriculture Organization) states that leftover food waste contributes 10% of the world emissions gas which causes greenhouse effects and other serious environmental impacts. The amount of risk caused by food waste is expected to be a concern and consideration for culinary businesses. So environmental damage is not getting bigger, and also can create a business that cares about the environment. To analyze the application of environmental awareness in restaurant MSMEs (Micro, Small, Medium Enterprises) in Bekasi Regency, this research using environmental responsibility variables as the dependent variable and independent variables namely environmental awareness, environmental accounting reporting and environmental audits. This study uses quantitative research methods that take primary data from 150 restaurant SMEs actors in Bekasi District. Analysis of data with multiple linear regression methods whose results show that environmental attention and environmental audit variables have no significant effect on the implementation of environmental responsibility, while the environmental accounting reporting variable has a significant effect on the implementation of environmental responsibility in restaurant SMEs in Bekasi District.</p>

PELATIHAN DAN PENDAMPINGAN DIGITAL MARKETING BAGI PELAKU UMKM DI DESA KERTOHARJO KELURAHAN KURIPAN KERTOHARJO

Paguyuban Uripjoyo is an association of Micro Small Medium Enterprise (MSME) actors in Kuripan Kertoharjo Village. The impact of the pandemic outbreak and regulations related to the Imposition of Restrictions on Community Activities have caused sales turnover to decline, for that MSMEs are required to be more creative and innovative in carrying out marketing activities. Digital marketing activities or online marketing is the most appropriate solution in dealing with this phenomenon. However, there are still many MSME actors who have not mastered digital marketing. Therefore, digital marketing training and assistance is needed for MSME actors in Kertoharjo Village to be able to compete and be innovative to increase sales turnover in the pandemic era. This Digital Marketing Training and Assistance aims to provide knowledge and skills for MSME actors in Kertoharjo Village to increase sales through digital marketing

An Exploration of Determinants of Entrepreneurial Characteristics, Motivation, and Challenges in Palestine

Being an entrepreneur is becoming an anabranch in the business world. In addition, many young adults are preparing to be entrepreneurs in the future. Worldwide, many intellectuals view entrepreneurship as necessary to small-medium enterprises (SMEs) in general because it is critical to development. Micro, small-medium enterprises (MSMEs) are crucial in Palestine because MSMEs dominate the Palestinian economy. 
 
 This study highlights the specific characteristics of entrepreneurship and the factors motivating and challenging people when starting up their enterprises in Palestine and dealing with these challenges and obstacles. 
 
 The research method combines qualitative and quantitative tools, each of which was used to study relevant aspects. The qualitative tools used are interviews with the entrepreneurs in Palestine, while the quantitative tool included a designed questionnaire. The collected data was then analyzed using SPSS v 23.
 
 Findings indicated that entrepreneurs in Palestine are self-confident, passionately seeking new opportunities with a good network of professionals, patient, persistent, and determinant, and can adapt to change.  The results further highlighted that the most motivational factors behind being an entrepreneur in Palestine include being their boss and increasing income to have a better financial future. However, Lack of savings, political situation, competition, and the fear of risk associated with starting a business is the significant challenges and obstacles they face., Finally, Results indicate that gaining experience, developing business plans, managing financial resources, and motivating employees are the critical factors they have to consider. At the same time, they deal with these challenges and obstacles.

Influence of Geographical Location and Online Marketing Strategy on Sales Grocery Store in Bandung

The COVID-19 pandemic throughout 2020 has hit the business development of several Micro, Small & Medium Enterprises (MSMEs). Therefore, marketers have to rack their brains to be able to market their products to consumers. The grocery store is one of the small businesses that has not escaped the impact of the Covid 19 pandemic. To be able to survive during the Covid 19 Pandemic, we have to work around this. Starting from focusing on digital marketing through websites that are used as e-commerce, social media, search engines, selling through the marketplace, and forming a reseller team to sell their products. To continue to increase sales in limitations and increasingly fierce competition, grocery stores are required to be proactive and increase their capabilities and potential. This study aims to develop an online marketing strategy and geographical location using Grabmart to increase grocery store sales. Bearing in mind the importance of the issue the present study also considered the role of geographic location of the brands regarding their sales. The research method used is a type of qualitative research with a descriptive approach. Data were collected using interviews and distributing questionnaires to the owners of the grocery store in South Bandung. Data analysis using SWOT analysis. The results showed that the results of the internal factor IFE value of 3.90. Where the total value of strength is 2.44 and the value of weakness is 1.46. And the external factor EFE obtained a value of 4.02. Where the total value of the opportunity is 1.96 and the total value of the threat factor is 2.07. From these results, the marketing strategy that must be carried out by the grocery store is an aggressive growth strategy. Additionally, the results of the study revealed that geographic location of the store also influences its strategy and sales. © 2021 RIGEO. All Rights Reserved.

Engage Your Customers During the Pandemic: The Impact of Social Media-Instagram Usage to Micro-Small Medium Enterprises (MSMEs) in Indonesia

The Covid-19 pandemic has hit many enterprises in Indonesia, especially on the micro-small medium scale. Various kinds of Indonesian government policies in reducing the spread of the covid-19 virus are often followed by the impact of business continuity on MSMEs. Along with the implementation of that policy, many MSMEs are competing to digitalize its businesses in their buying and selling transactions. Optimization of the use of social media is used to retain old buyers and attract new markets. This study aims to determine whether optimizing and utilizing the use of social media, which focus on Instagram, maximally can help MSME in maintaining their business in the pandemic era. A qualitative approach with a 45-day observation method for selected MSMEs in Indonesia is carried out in forming some unique themes related to strengths and weaknesses that arise from Instagram utilization activity. The effectiveness of using Instagram could be obtained through several activities, such as customer engagement optimization, content highlight, and popular brand benchmarking.

JURIDICAL REVIEW OF THE FACILITATION OF COMMUNITY PLANTATION DEVELOPMENT BY PLANTATION COMPANIES

The government regulates the facilitation of community plantation development as much as 20% of the area of rights by plantation companies. This provision which is the obligation of the company was still not regulated in a clear and firm legal arrangement so that it created multiple interpretations in its application. Based on this matter, the writer was motivated to analyze the legal arrangements for the facilitation of community plantation development by plantation companies and the obstacles encountered in the implementation. The plantation company which was the focus of the research was PT. Pamor Ganda with Business Right (known as HGU in Indonesia abbreviation) Number 16/1989 by studying the HGU extension document. This was a normative research with a statutory approach. The method of analysis performed was content analysis, then the interpretation was carried out to understand the conclusions. The results showed that legal arrangements in the land sector, Micro, Small, Medium Enterprises (MSMEs), and plantations had not been able to solve the problems that exist in the implementation of facilitation of community plantation development by plantation companies. The company's obstacle was that the plasma farmers' plantation area around the companies’ plantation area had not been able to meet the 20% area requirement. While PT. Pamor Ganda had fulfilled its obligation to facilitate community plantation development by releasing its 114 hectare of HGU area.

SHARIA BANKING FINANCING MODEL IN ENHANCING THE HALAL CERTIFICATION OF MICRO, SMALL, MEDIUM ENTERPRISE INDUSTRY

A large number of Micro, Small, Medium Enterprise (MSMEs) that did not have a halal certificate yet due to lack of funds is one of the main problems in the failure of the implementation of the JPH Law mission. Halal Product Certification Agency (BPJPH) demands all products sold in Indonesia ought to have a halal certificate in 2019. This study aims to provide a model solution from the financial institution side. Islamic banking as a sharia financial institution has a strategic part to help MSMEs, offer a variety of contracts, and make MSMEs able to carry out halal certification processes. By using descriptive-analytic method, the results of this study offer the financing model with murābahah and mudhārabah contract. The financing model with a murābahah contract is applied as in the common purchasing contract. While the financing model with a mudharabah should be adjusted to the principle of profit-loss sharing with some period adjustment. The implication of this research shows that Islamic Banking can be an intermediary between the community and BPJPH. The submission process of halal certificates through the Islamic banks cooperation is considered easier, more efficient, and transparent.

Analysis of differences in the productivity of MSMES Sentra Rajut as a pandemic impact of COVID-19

The resilience of Micro Small Medium Enterprises (MSMEs) in Indonesia is currently being tested in the face of the impact of the economic downturn due to the Covid-19 pandemic. This condition also resulted in a decrease in the productivity of the knitting centers of SMEs, including the Binong Jati knitting center in Bandung City, as a result of the Covid-19 pandemic. The purpose of this study is to analyze differences in productivity before the pandemic and after the pandemic has hit the world. The method used is to use a different test between two interconnected samples. The population in this study were MSMEs which are members of the Binong Jati Rajut Center with a sample of 9 MSMEs. Result From this study, from 9 MSMEs, only 3 MSMEs experienced an increase in productivity even though the pandemic took place. From the different tests carried out, it was found that there was no change in productivity between before and after the pandemic. © 2021 Karadeniz Technical University. All rights reserved.

Optimalisasi Penggunaan Bahasa Iklan Interaktif dalam Pembuatan Iklan Online Produk Unggulan di Kelurahan Semarapura Kaja

Klungkung Regency is not only famous for producing songket and endek fabrics, but there are still many other Micro, Small, Medium Enterprises (MSMEs) that have been born and developed there. Semarapura Kaja Village is one of the MSME centers which certainly has a lot of potential that must be supported and developed so that it can become bigger and more independent. However, not all of these MSMEs have adequate capital, strategies, and support to be able to develop rapidly so that synergy and collaboration with the government and other parties are needed to overcome these problems. One solution that can be offered is to carry out promotional activities with interactive advertising language to attract consumer interest through online media in the hope of expanding market share and of course increasing income for MSME in Semarapura Kaja Village. This Community Partnership Program (PKM) educates and assists MSME to create good promotion and marketing strategies, either through print or online media. Assistance in optimizing the use of interactive advertising language in making online advertisements for superior products in Semarapura Kaja Village is targeting MSME who sell Balinese traditional clothing as one of the characteristics of Klungkung Regency which is the center of MSME traditional clothing. In its implementation, it was found that people are still very ignorant not only about advertising language but also with how to create, manage, and develop social media for promotion because there are still social media such as: Instagram and Facebook that are not effective and even not active in uploading content so that the form of implementation of assistance is direct and not in groups to maximize the results. MSMEs that are partners in the Community Partnership Program (PKM) are Dex's Pong and Tri Arta Collection. MSME have been assisted to socialize the importance of professionally managed social media with interactive advertising language, how to create attractive visual content for potential customers, to the importance of publication in print or online media. It is hoped that MSME will be able to consciously and independently promote their products in the future through the media consistently and continuously.

Optimalisasi Penggunaan Bahasa Iklan Interaktif dalam Pembuatan Iklan Online Produk Unggulan di Kelurahan Semarapura Kaja

Klungkung Regency is not only famous for producing songket and endek fabrics, but there are still many other Micro, Small, Medium Enterprises (MSMEs) that have been born and developed there. Semarapura Kaja Village is one of the MSME centers which certainly has a lot of potential that must be supported and developed so that it can become bigger and more independent. However, not all of these MSMEs have adequate capital, strategies, and support to be able to develop rapidly so that synergy and collaboration with the government and other parties are needed to overcome these problems. One solution that can be offered is to carry out promotional activities with interactive advertising language to attract consumer interest through online media in the hope of expanding market share and of course increasing income for MSME in Semarapura Kaja Village. This Community Partnership Program (PKM) educates and assists MSME to create good promotion and marketing strategies, either through print or online media. Assistance in optimizing the use of interactive advertising language in making online advertisements for superior products in Semarapura Kaja Village is targeting MSME who sell Balinese traditional clothing as one of the characteristics of Klungkung Regency which is the center of MSME traditional clothing. In its implementation, it was found that people are still very ignorant not only about advertising language but also with how to create, manage, and develop social media for promotion because there are still social media such as: Instagram and Facebook that are not effective and even not active in uploading content so that the form of implementation of assistance is direct and not in groups to maximize the results. MSMEs that are partners in the Community Partnership Program (PKM) are Dex's Pong and Tri Arta Collection. MSME have been assisted to socialize the importance of professionally managed social media with interactive advertising language, how to create attractive visual content for potential customers, to the importance of publication in print or online media. It is hoped that MSME will be able to consciously and independently promote their products in the future through the media consistently and continuously.

Customer relation management of financial service provider for people entrepreneurship credit sustainability in Indonesia

This study provides an analysis of customer relationship management implementation in small-medium enterprises. The focus on micro small medium enterprises (MSMEs) is a part of Sustainable Development Goals (SDGs), especially promoting inclusive and sustainable economic growth and increasing employment opportunities. The banks have a role in supporting the attainment of SDGs. One of the roles in strengthening the excellent relationship with the banks’ consumers, especially for the consumers categorized as the borrowers of People Entrepreneurship Credits. The research aims to highlight the critical elements of customer relationship management of banks to maintain customer retention due to the intense financial providers, both bank service and non-bank service. Customer relationship management elements address key customer focus, customer relationship management organization, knowledge management, and technology-based customer relationship management. The research method used in an in-depth interview is based on customer relationship management elements using the managers who are in charge of the customer relationship management departments. The study finds that the customer relationship elements are essential to support banks’ ability as the service providers in managing their customers.

Study of Financial Behaviors Micro Small Medium Enterprise in Bandung, Indonesia

This study has purpose to reveal financial literacy from micro small medium enterprise (MSME) entrepreneurs in Bandung, Indonesia. Divided by three locations, Bojongsoang, Sukajadi and other location in Bandung city. The purpose of this research is to convey MSME behavior of financial literate. Criteria of financial literate are person can understand and practice for financial management, saving/investing, insurance & estate planning, credit, shopping. The method for testing used in this paper build by O’Neill is through Financial Fitness Quiz (FFQ)The result from 276 participants Bojong Soang, Sukajadi and other locations In Bandung, have different results degree. The result for saving/investment, insurance and estate planning, credit, shopping dimension showed low score below 20 points. It has been proven that MSME entrepreneurs need personal financial planning training. This research has purpose for to increase financial literate and to improve positive financial behavior with education and apps program peSak Abdi.

Developing A sustainability framework for Industry 4.0

With the development in industrialization, sustainability has emerged as a major issue in the global market. Ignorance of sustainability issues in any organization leads to huge financial losses and market reputation. With the development of new technologies developed economies have achieved sustainability in their industry sectors due to strong infrastructure. However, the adoption levels of sustainability practices in emerging economies are still limited. The current manufacturing trend in Industry 4.0 offers new key technologies e.g. cyber-physical systems, IoT (Internet of Things), additive manufacturing and big data analytics which are under the umbrella of Industry 4.0 known as key technologies for 4th industrial revolution. These new technologies are contributing to sustainability in a direct or indirect way. Identification of different enablers is necessary as it facilitates the adoption of sustainability practices in Industry 4.0. The present study aimed at the development of sustainability practices framework for Industry 4.0 for MSMEs (Micro Small Medium enterprises) sector. Initially, enablers to sustainability in Industry 4.0 were identified from the available literature on Sustainability and Industry 4.0. Further, a case study is done in one of MSMEs of India which is working on the adoption of Industry 4.0 practices. A hybrid MCDM (multi-criteria decision making) approach based on F-AHP (Fuzzy-Analytical hierarchy process) and DEMATEL (Decision making trial and evaluation laboratory) is utilized for the framework development. The results revealed that supply chain and environment related enablers are the main cause of barriers to sustainability in Industry 4.0. It is expected that the findings of this study will be beneficial for the researchers, policymakers and managers to improve the sustainability with the use of Industry 4.0 technologies within the emerging economies in MSMEs.

The effects of entrepreneurial skills, benchmarking, and innovation performance on culinary micro-small-medium enterprises

This study was to analyze the effect of entrepreneurial skills and benchmarking on the performance of culinary innovations (restaurants, restaurants, and cafes) of micro-small-medium enterprises (MSMEs) in Indonesia sub-urban areas. Online questionnaires were used as the instrument to collect data, and the data were analyzed by deception analysis to illustrate various features of the variables studied. Hypothesis test was conducted by Partial Least Square Path Modeling (SEM-PM). The MSME population was 231 and the representative sample was 144 culinary companies. It was found that entrepreneurial skills, benchmarking, and performance of culinary MSME innovations tended to be lower than expected. The results of this study revealed that entrepreneurship and benchmarking skills had significant effects on innovation performance. To improve innovation performance, companies must pay more attention to practical knowledge, especially knowledge of bookkeeping and digital marketing, and make more comparisons on financial aspects.