MSME Sector Research Articles

The Impact of Government Policy and Trust on Motivation and Tax Payment Compliance in The MSME Sector

The present study examines the impact of policy government and trusts on motivation and compliance with tax payments in the MSME sector. It applied the Structural Equation Modeling (SEM) method with the SmartPLS program version 3.0 to test seven proposed hypotheses. The results of the study show that the policy government’s influence positively and significantly on motivation to pay tax with a coefficient of 0.246 and p-value = 0.021. Trust in government also has a positive and significant impact on motivation to pay tax with a coefficient of 0.342 and p-value = 0.002. Besides, motivation to pay tax influences significantly compliance with a coefficient of 0.424 and p-value = 0.000. The mediation test shows that motivation partially mediates the influence of government policy and trust on compliance with tax payments with VAF values of 27.8\% and 23.8\% respectively. The study gives additional proof that policy government and trust have an important role in increasing motivation and compliance to pay taxes in the MSME sector. It is suggested that enhancement of socialization policy as well as trust development to increase obedience taxes.

Awareness of Central Sector Scheme among the Entrepreneurs in MSME Sector: An Investigative Study

MSME is one of the key driving force to promote entrepreneurship and make effort to encourage entrepreneurial activity. Numerous policies, initiatives and programs are being implemented by Government at both national and international level for promoting entrepreneurial spirit among prospective entrepreneurs. The focal point of this research paper is to measure the extent of awareness regarding various central sector schemes of the Government of India. This was a descriptive study involving 396 sample respondents selected by applying Taro Yamane (1976) Formula and using stratified sampling technique. The study was conducted in MSME sector of Calicut district from Northern region in Kerala. A structured questionnaire is administered to collect data regarding demographic factors and awareness level of sample respondents in the study area and also test the association between these two variables. The Researcher discovered that most of the entrepreneurs have no awareness about the Government scheme. So, it should be the onus of the authorities to establish rapport with entrepreneurs and erect awareness through advertising initiatives, internet platforms etc and the banking institutions ought to reflect at its branches a variety of scheme promoted by the Government.

Pengaruh pengetahuan perpajakan, ketegasan sanksi perpajakan dan kesadaran wajib pajak terhadap kepatuhan wajib pajak pada UMKM di Kabupaten Kepulauan Sangihe

The objective of this research is to determine the influence of tax knowledge, strictness of tax sanctions, and taxpayer awareness on taxpayer compliance among MSMEs in Sangihe Islands Regency. This research employs a quantitative methodology with a descriptive approach. A questionnaire was distributed to 30 respondents from MSME actors to collect the data. The data was analysed using validity, reliability and hypothesis testing with the multiple linear regression method. The results of the research clearly show that tax knowledge and the strictness of tax sanctions have a positive and significant influence on taxpayer compliance, while taxpayer awareness does not. This research makes a significant contribution to the development of tax literature and provides clear recommendations for tax authorities to improve tax education and awareness strategies to increase taxpayer compliance in the MSME sector. The results of this research can help increase state revenues through better taxpayer compliance.

Unleashing the potential of MSMEs in India: A strategic analysis

ABSTRACT Micro-, small, and medium-sized enterprises (MSMEs) are crucial to the Indian economy, significantly contributing to employment, industrial output, and regional development. As of March 2024, India hosts approximately 40 million MSMEs, predominantly micro-enterprises, which together account for around 30 percent of Gross Domestic Product and employ over 110 million people. This article explores the multifaceted role of MSMEs, examining their distribution across manufacturing, trade, and services sectors. The manufacturing segment, including textiles and food processing, employs about 31 percent of the MSME workforce, while trade and services sectors contribute 33 percent and 36 percent, respectively. The study reviews financing mechanisms, government policies, and human capital development, assessing the MSME sector’s resilience and adaptability in the face of economic disruptions and policy changes. Linear regression analysis reveals stability in manufacturing, fluctuations in trade, and consistent growth in the services and electricity sectors. Despite the MSME sector’s significant contributions, MSMEs face challenges, such as limited access to finance, regulatory complexity, and technological gaps. Opportunities for growth include digital transformation, export expansion, and enhanced government support. Addressing these challenges through improved credit facilities, technological support, regulatory reforms, and infrastructure development is essential for sustaining MSME growth and competitiveness. The World Congress on MSMEs underscores the need for comprehensive policy frameworks to support the MSME sector’s ongoing development and their role in driving economic progress and regional development.

Health Infrastructures in India with Special Reference to MSME Sector - An Assessment

The healthcare enterprise consists of each the general public and business sectors and consists of scientific tourism, hospitals, fitness insurance, scientific equipment, and outsourcing. The creation of healthcare products, inclusive of scientific equipment, instruments, and services, in addition to for biotechnology and diagnostic laboratories via way of means of Indian Startups affords an answer within side the shape of healthcare services and products and quickens technological innovation to face up to international competition. The National Health Policy, which changed into posted in 2017 to construct the fitness care infrastructure, and the Pradhan Mantra Ayushman Bharat understand the significance of pharmaceutical agencies for enhancing healthcare. The pinnacle 20 markets for scientific gadgets are closely encouraged with the aid of using the scientific tool sector. MSME makes up 6.11% of the GDP from manufacturing, 24.63% of the GDP from services, and 45% of the whole exports. According to the Medical Tourism Index (MIT) for 2020–21, scientific era in India is predicted to attain US $50 billion with the aid of using 2025 and is now positioned 10th. Out of forty six international locations, India`s healthcare marketplace is predicted to attain US$372 billion with the aid of using 2022.usedsecondary data in this paper for discussed Health infrastructures and evaluate role of Health facilities and problems in Health sector in India by secondary source.

Food Vlogger vs. e-WoM: Preferensi Kepercayaan Konsumen dalam Memilih Tempat Makan di Pekanbaru

This study examines consumer trust preferences in Pekanbaru when choosing dining places, comparing the influence of reviews from food vloggers and electronic Word of Mouth (e-WoM). The study employs Consumer Behavior Theory as the theoretical framework and a descriptive qualitative approach to analyze data obtained from interviews with 20 informants. The results show that consumer trust preferences are influenced by a combination of both sources of information. Most consumers use food vlogger reviews to get an initial impression and then verify this information by reading e-WoM from other consumers. This research has implications for culinary MSMEs in Pekanbaru to utilize food vlogger reviews and e-WoM as effective marketing strategies. Transparency, honesty, and consistency in reviews are key factors in building consumer trust. Social interactions on social media significantly influence consumer purchasing decisions, especially in the culinary MSME sector. Therefore, MSMEs need to leverage these interactions to build and maintain consumer trust through word of mouth.

The Role of Sharia Banks in Sustainable Development During Indonesia's Economic Recovery Post-Covid-19

Since Covid-19 appeared three years ago an undeniable economic recession has hit the world including Indonesia, the economy has slid drastically to minus 5 in 2020-2021. However, it finally revived after the new normal adaptation era in 2022, GDP showed a positive trend. This is of course because the role of Sharia banking, especially in assisting the national economic recovery program, shows a significant level. Research using a qualitative approach through descriptive methods yields findings that Indonesia's GDP per capita increases from 57.3 in 2022 to IDR 62.1 million in 2021 (an increase of 8.6%) equivalent to USD 4,349.5. The PEN program in 2021 also experienced a ceiling increase of Rp. 658.6 T (88.4%) from a ceiling of Rp. 744.77 T which was higher than the previous year of Rp. 575.8 T. The role and contribution of Sharia banks in serving financing in the MSME sector is becoming thing done completely. This is the achievement of Islamic banking in the new normal adaptation time of the Covid-19 outbreak.

The Influence of Inflation, Exchange Rate, BI Rate, and Economic Growth on Mortgage Volume (KPR) in the Covid-19 Era

The financial technology industry is one of the most consequential sectors influencing various countries’ economies. Fintech has great potential and can bring in many opportunities for developing MSMEs, especially in Indonesia. Since the beginning of 2020 the Covid-19 pandemic has affected the Fintech industry, which has started to be cultivated by the MSME sector, especially in Malang. The present study aims to determine the impact before and after the COVID-19 pandemic on the development of the financial technology industry in MSMEs in Malang City using the critical thinking review model. This research uses primary data from 151 MSMEs in Malang City. The results of this study show that 73% of MSMEs in Malang City did not use Fintech accounts before the COVID-19 pandemic. However, since the pandemic, 98% of MSMEs in Malang City have used the fintech platform in their product payment activities. Therefore, there are positive implications due to the pandemic condition. In addition, the public has started using various fintech services, which leads to increasing financial literacy and indicates the growth of financial inclusion. Keywords: industry financial technology, critical thinking model, MSME

Should the Cash Receipt System (CRS) be Implemented to Optimize Taxes in the Indonesian MSME Sector?

Research Aims: This study aims to analyze the viability of applying a Cash Receipt System (CRS) concept in supervising tax revenue from the MSMEs sector to add the consideration for implementing CRS in Indonesia using the OECD (2015) framework. Design/methodology/approach: This study uses a descriptive qualitative approach in the form of a case study conducted at the Directorate General of Taxes (DGT). The study was carried out by analyzing literature analysis, analyzing taxation data on the MSMEs sector, and analyzing interview results. The data collection method consists of secondary data through literature analysis and primary data through interviews with respondents from the DGT, Regional Revenue Agency, taxpayers in the MSMEs sector, consultants, and related associations. Research Findings: Research shows that CRS policy does not fulfill some OECD (2015) principles, especially Neutrality, Efficiency, and Equity. This research emphasizes the importance of tax education and financial literacy in the MSME sector for Indonesia's sustainability of tax revenues. Theoretical Contribution/Originality: Suggested by the OECD (2017), the study contributes to the body of knowledge regarding the application of the fiscal device to counteract tax evasion in Indonesia. Keywords: Fiscal Device, Cash Receipt, Tax Evasion, MSME

Perceived organizational support for the employee engagement of MSMEs with dual mediating effects of innovative work behavior and emotional intelligence

In India, particularly in MSMEs, a strong emphasis is placed on maintaining employee engagement to ensure an organization's success. This study examines how workplace assistance affects employees' effective company participation. This research proposes studying innovation work behaviour (IWB) and emotional intelligence as mediating variables. These factors influence employee satisfaction (ES) and organizational effectiveness (OE). A few years ago, "employee engagement" was essentially unimportant. Today, it defines a considerable organization's success or failure. Then, the structural features including the POS which is vital to functionality, are examined. This research was deepened by the convenient direct sampling of 300 Indian SME employees. This analysis revealed the odd and multifaceted features of the situation. This remark makes sense if organic POS is a system of BWI and EI interactions. They relate to linking BWI and EI. Many employees who find their organizations supportive have greater job engagement. An individual's sphere of influence and impact range is limited to their comprehension of the environment or commercial entrepreneurship; thus, he or she always has high emotional intelligence. Adhering to our leader's ideas has helped us feel like a team and achieve more while enhancing our time management, responsibility, and competitiveness. Funding institutions must recognize and prevent factual disclosure in their complicated structures. This study scrutinizes the complex bonds among emotional intelligence (EI), intrapreneurial behaviour (IB), and organizational efficiency in India's burgeoning MSME sector. Previous research should have shown that these two aspects are linked. This inquiry into the interaction between these two factors will expand the investigation's results. The following research emphasizes the importance of organizational support in MSME operations. We enjoy life by mixing numerous things, even though it is essential. This reveals that creativity, emotional intelligence, and job creation require help. MSMEs can contribute to the sustainable development goals (SDGs) and gain a competitive edge by developing a knowledge system to address environmental uncertainties.

Digital Platforms as Enablers of MSMEs' Business Model Innovation: Revealing the Role of Capability Reconfigurations

This study aims to examine the impact of digital platforms on business model innovation within the MSME sector in Indonesia, addressing the contextual limitations found in previous study. Utilizing a comprehensive study design, this study investigates the roles of digital platform adoption, evolutionary capability reconfiguration, and substitutional capability reconfiguration in driving business model innovation. The study methods included hypothesis testing through partial least square structural equation modeling (PLS-SEM) on data collected from MSMEs in Sleman, Yogyakarta. The results reveal that while digital platform adoption alone does not directly enhance business model innovation, it significantly influences capability reconfiguration. Specifically, substitutional reconfiguration plays a critical role in transforming business models by integrating new, more efficient capabilities. Conversely, evolutionary reconfiguration, despite being influenced by digital platforms, does not have an immediate significant impact on business model innovation. These findings contribute to the theoretical understanding of dynamic capabilities, highlighting the importance of substitutional reconfiguration for rapid and significant innovation. Practically, the study provides valuable insights for MSME owners and managers on leveraging digital platforms to enhance their value chains and drive business model innovation, ensuring sustainability and competitive advantage in the digital age.

A Qualitative Dynamic System Approach Post Covid-19 Recovering Strategy on the MSME and Tourism Sector of Cirebon, West Java

A Qualitative Dynamic System Approach Post Covid-19 Recovering Strategy on the MSME and Tourism Sector of Cirebon, West Java

Empowering India’s Growth: Comprehensive Insights into MSME Schemes and Employment Dynamics through Udyam Registration

The performance and growth of MSME in the Indian economy over the last five decades is highly progressive. MSMEs sector is the second-largest employment provider in India and more specifically, it has been showing a massive contribution to the nation’s GDP as well. The Government of India has announced different schemes to promote the MSME across the nation to ensure its vision as MSME is the engine of growth and development of the Indian economy. In India, the MSME sector is the pillar of the national economy, nearly 36.1 million enterprises are working in various industries nation-wide on which 120 million people are employing and contribute around 29% to the nation’s GDP. Even though, Indian government provides various packages to stimulate the MSME sector, the growth of this sector has been marred by several challenges and it has been encountered various hurdles to function the organization smoothly. Thus the present study focuses to understand the schemes and opportunities provided by the Central Government of India and also the study aim to analyse the progression of employment generated by MSMEs registered under the Udyam Registration Portal across various states.

OPPORTUNITIES AND CHALLENGES FOR MICRO, SMALL & MEDIUM ENTERPRISES (MSMES) IN INDIA: A DETAILED STUDY

Purpose: The purpose of the study is to review the existing opportunities and challenges of MSMEs in India mainly after implementation of GST. MSMEs make up more than 90% of all enterprises in most economies, are the main drivers of job growth, and contribute significantly to both industrial output and exports. MSMEs are essential to the broader industrial growth in India as well. When compared to the industrial sector as a whole, the MSME sector has had more expansion in recent years. Since then, 50% of MSMEs in India are owned by poor communities, it is possible to assess the significance of the MSME sector. MSMEs have contributed praiseworthy role in the conversion of the economy of India is rural economy to an industrialised one. The second largest employer in India is the MSME sector, right behind the agricultural sector. They are extensively spread out around the nation and generate a wide variety of goods and services to satisfy the demands of local, national, and multinational supply chain as well as local and worldwide marketplaces. To grow this industry and increase its competitiveness, the government has offered a number of plans and initiatives. Nevertheless, this industry has been contributing a large portion in India's economy but there are numerous obstacles that make the running of this sector incredibly challenging. The current study makes an effort to pinpoint key opportunities and restrictions for MSMEs in India. Design/Methodology/Approach: The study mainly includes the review of secondary data collected from various authors, journals, magazines, government’s websites and other various unpublished sources.Findings: The study makes an effort to draw attention to the different government initiatives created to support the MSME sector in India. The study showed that while the government is making every effort to support MSMEs through a variety of measures, there are still many restrictions and challenges that this industry must overcome.Future Scope of Research: As we all know, the Indian economy is still in its early stages, and the implementation of GST in India is only five years old. Therefore, there are many sectors and areas in the Indian economy that are not fully developed, and the development of these sectors in the near future will create more opportunities and challenges for MSMEs.

Halal Industry Recovery of Creative Halal Industry Business After Covid-19 Pandemic

This research identifies gaps in understanding halal business adaptation strategies amid the COVID-19 pandemic, especially in the MSME sector, focusing on case studies of Yotta and Browcyl in Makassar. This study aims to explore the development of the two products' halal businesses after the pandemic, the strategies they implemented, and the application of Sharia principles in their operations. The method used is field research with a qualitative descriptive approach through interviews and thematic analysis. The results showed that Yotta and Browcyl survived and thrived through digital transformation and halal certification despite facing significant challenges such as declining production and sales. However, this study has weaknesses in the generalizability of the findings and the lack of investigation of the long-term economic impact of the strategies adopted. For future development, it is recommended that the scope of the study be expanded by including more cases from different segments of the halal creative business industry and analyzing government policies that affect the industry. Future research is expected to provide comprehensive guidance for industry players to formulate effective strategies to face future challenges and capitalize on growth opportunities.

Perbedaan Kinerja Bank Perekonomian Rakyat (BPR) Berdasar Kondisi Sebelum, Saat Pandemi dan Awal Transisi Pandemi

During the Covid-19 pandemic, many economic sectors experienced significant disruption. This also has an impact on the banking sector, including BPR which are financial institutions that play a key role in supporting economic growth at the local level by providing banking services to the MSME sector. This research aims to examine whether Covid-19 has an impact on the banking financial performance of the People's Economic Bank by comparing the performance of BPRs before, during and after the pandemic. The data used is secondary originating from 2018-2021 publications. There are several financial performance ratios used, including Liquidity (Loan Deposit Ratio), Non-Performing Loans, Profitability (Return On Assets), Capital (Capital Adequency Ratio) and operations (Operating Costs and Operating Income). The data was processed using a Mann-Whitney U test using the SPSS 23 application. This research indicate that the performance of BPR banks in the NTB region is able to maintain stability and consistent financial performance in several indicators, such as NPL, ROA, LDR, BOPO and CAR before, during and early in the transition to the Covid-19 pandemic.

Pemanfaatan Digital Marketing dalam Upaya Meningkatkan Pemasaran Produk Makanan dan Brand Awareness

The Covid19 pandemic has had a major impact on weakening Indonesia's economic sectors, including Small, Micro and Medium Enterprises (MSMEs). The MSME sector is one of the sectors that makes a big contribution to the national economy, so it needs to rise during the current Covid19 pandemic. Such as the problems experienced by food businesses in Kraton Village - Jember regarding the decline in turnover caused by the Covid19 pandemic. The decline in sales results was not only caused by the COVID-19 pandemic but also a lack of product marketing such as not utilizing online marketing via social media. Insufficient understanding of how to market products online is also one of the reasons for the decline in product sales during this pandemic. Seeing situations like this, it is necessary to carry out activities aimed at educating on the use of social media and optimizing business during this pandemic.

The influence of agile leadership, motivation of entrepreneurial, and organizational culture on the Performance of Creative Economy MSMEs on Lombok Island

<span lang="EN-US">The Covid-19 pandemic has encouraged efforts to recover the national economy through the MSME sector, which is important for the economy. This sector, while vital, has also been negatively affected by the pandemic. In a difficult economic situation, special attention to MSMEs is important because internal and external factors affect business performance. In addition, adaptability (agility) and entrepreneurial motivation also have a significant role in facing this challenge. The purpose of this study is to determine the relationship between Agile leadership, motivation of entrepreneurial, and organizational culture on the performance of creative economy MSMEs on Lombok Island. The study used quantitative methods by taking respondents from entrepreneurs or owners of creative economy MSMEs, especially food and baverage (culinary). The output produced is the National Journal with ISSN and teaching materials that enrich entrepreneurship learning materials and human resources.</span>

Creation of Micro Market Structure in MSMEs in Review of Social Entrepreneurship Involvement, Government Policy and Empowerment

In order to better understand the role of social entrepreneurship, government policies, and empowerment initiatives, this study looks at how micromarket structure is created in micro, small, and medium-sized firms (MSMEs) in Indonesia. In order to conduct a survey with a stratified random sample of 215 Indonesian MSMEs, this study used a quantitative technique. Data analysis techniques included partial least squares structural equation modeling (PLS-SEM) and confirmatory factor analysis. The findings demonstrate the important influence of social entrepreneurship, governmental policies, and empowerment programs on the evolution of micro-market structures within the MSME sector. Social entrepreneurship in particular shows the potential of creative and socially conscious business ideas and has a positive effect on market structure. While empowerment programs like loan availability and training help to create a competitive market structure, government policies also have a significant impact on how the market is shaped. Policymakers, business owners, and development organizations that want to support effective and long-lasting market networks in Indonesia's MSMEs sector should take note of these findings.

Gender Disparities and Social Responsibilities as a Barrier to the Adoption of E-Commerce for Women Entrepreneurs of India in the MSME Sector

Gender-based obstacles that prevent women from beginning and expanding their enterprises include unequal distribution of family and domestic duties, restricted mobility, discriminatory property, marriage, and inheritance laws and/or cultural traditions. When it comes to accessing resources such as commercial credit from formal financial service providers, more lucrative markets rather than traditional local markets, technology and information to launch and expand their businesses, national incentives in small enterprise development through gender-blind private sector development, fiscal policies and legislation, and training and education for small enterprise development, women entrepreneurs are less privileged than men due to these factors combined with social exclusion based on gender. In the informal sector, women entrepreneurs running micro and small companies significantly improve the financial security of their families and communities. They have little chance of creating successful firms as long as they are not covered by SME development laws and initiatives. In order to address these issues, this research paper takes a development and rights-based strategy that strives to meet the real-world needs of female entrepreneurs, eliminate the political, legal, and sociocultural obstacles to their success, and promote an atmosphere that is supportive of both gender equality and business growth.