Performance Of Micro, Small And Medium Enterprises Research Articles

The Influence Of Knowledge Management And Entrepreneurial Orientation On Business Performance Mediated By Competitive Advantage (A Study On Smes In The City Of Bandar Lampung)

Micro, Small and Medium Enterprises (MSMEs) have an important role in the economic growth of a country. The contribution of MSMEs to Indonesia's GDP experienced a depression due to the emergence of Covid-19 at the beginning of 2020. However, two years after the government declared pandemic for Indonesia, the performance of MSMEs has begun to recover from its downturn. This is shown by the increase in the contribution of MSMEs to Indonesia's GDP and employment in Indonesia. Moreover, the performance of MSMEs in Bandar Lampung City has also experienced an improvement as shown by an increase in MSME profits. This research aims to analyze the influence of knowledge management and entrepreneurial orientation on business performance in Small and Medium Enterprises (SMEs) as well as the mediating effect of competitive advantage in this relationship. This research uses a quantitative approach to draw conclusions from the proposed hypothesis. Sample was selected using the census method so that the total sample was 44 respondents who were SMEs registered in Dinas Koperasi dan UKM Kota Bandar Lampung. Data collection method uses a questionnaire and the data is analyzed using SEM-PLS with the bootstrap method. The results show that knowledge management, entrepreneurial orientation, and competitive advantage have a direct and significant influence on business performance. Furthermore, competitive advantage was also found to play a mediating role in the relationship between knowledge management and entrepreneurial orientation on business performance.

The Relationship of Business Strategy and MSMEs Performance: Innovation and Accounting Information System as Mediating Variables

Micro, Small, and Medium Enterprises (MSMEs) play a significant role in the national economic growth. This has made the performance of MSMEs a concern for many parties, including the government, which necessitates efforts to continuously maintain and enhance their performance. The performance of MSMEs is greatly determined by how they design, implement, and manage their business strategies. Designing appropriate business strategies can provide support for MSMEs in achieving superior and sustainable performance over the long term. Business strategies that focus on growth and competitive advantage often require innovation in their implementation. To help identify the necessary resources in the implementation of business strategies, Accounting Information Systems (AIS) are also required. The objective of this research is to test the relationship between business strategies and the performance of micro-enterprises through innovation and AIS in MSMEs. The research population consists of MSMEs in the food and beverage sector in the city of Malang. The data analysis tool used is Structural Equation Modelling (SEM).

Bank stability and fintech impact on MSMES’ credit performance and credit accessibility

The growth of financial technology (fintech) brings happiness to micro, small, and medium enterprises (MSMEs) that banks have denied access to credit. However, this condition has the potential to create a climate of intensified competition in the credit market and threaten banking stability. Therefore, this study examines the impact of banking stability and fintech on credit performance and credit access of MSMEs. This study uses a sample of 46 public commercial banks of the Republic of Indonesia and uses quarterly data from 2010 to 2022. The number of observations used for bank stability variables was 2,392, and for the fintech variables, 921 observations. This research analysis uses the fixed effect model method with robust standard errors. The results show that bank stability and fintech effect MSMEs’ credit performance and their access to credit. This finding encourages the competition-fragility theory. Bank stability reduces nonperforming loans and MSMEs’ access to credit. This indicates that stable banks encourage better MSME loan performance and thus restrict their lending to MSMEs. The existence of fintech is proven to improve MSMEs’ non-performing loans and their access to credit. Fintech that facilitates easy credit causes MSMEs` credit performance at banks to fall, which in turn opens the gate for MSME credit. The implication is that the financial services authority (OJK) needs to tighten further the online lending of fintech companies that have put more burden on MSMEs with high capital costs that can affect the ability of MSMEs to pay bank loan installments. AcknowledgmentsAppreciation is given to the Directorate General of Higher Education, Research and Technology, Ministry of Education, Culture, Research, and Technology, which has provided a fundamental research grant with contract number 182/E5/PG.02.00.PL/2023. Thanks are also given to higher education service institutions (LLDIKTI) Region 6 and the Institute of Research and Community Services (LPPM) Unisnu Jepara Indonesia, which has supported this research.

Urgency of Tax Incentives in Indonesia for Research, Development, and Internationalization of MSMEs

The purpose of this research is to reveal and find out some of the factors needed by micro, small and medium enterprises (MSMEs) to develop their business through development research in order to increase economic growth and business networks at the international level. This study uses library research methods, through a qualitative approach with deductive and inductive process analysis. The data source is secondary data, namely relevant previous scientific work. Data processing is done by: analyzing correlations and building concepts to predict, explain, and control the studied phenomena, and draw conclusions based on the theoretical framework. The results of this study indicate that the development of MSME entrepreneurship is the main driver of economic growth in several countries, including Indonesia. For the development of MSMEs, the government can provide a conducive environment for the business world and MSMEs through financial support such as providing tax incentives. So that MSME development research is the main focus in innovation and technological change to increase higher economic growth. Improving the performance of MSMEs through innovation, job creation, export growth, and the emergence of new highly competitive entrepreneurs is an opportunity to gain greater access to new markets at the international level.

Effect of Mobile Phone-Based Digital Technologies on the Performance of Refugee Women-Led Micro, Small and Medium Enterprises in Kakuma Refugee Camp

The contribution of Micro, Small, and Medium Enterprises (MSMEs) to economic development as well as the role of digital technology in MSME performance are underscored in many studies globally. MSMEs provide over 70% of employment, contribute to national revenue, and are considered key to increasing productivity. In Africa, MSMEs are also recognized for skill development and upward mobility in diverse geographic areas and economic sectors, provide livelihood and income for diverse segments of the labor force, and are the backbone of Africa’s economy as well as key to its most pressing development challenges. Despite the potential of MSMEs for economic growth, many face a myriad of challenges, both internal and external to the firm, that constrain their performance and ultimate survival. This is especially critical for refugee-owned enterprises. In light of the constraints, the utilization of digital technology has emerged as an important strategy to secure the growth, performance, and survival of MSMEs. The objective of this study was to examine the effect of mobile phone-based digital technologies on the performance of refugee women-led MSMEs in Kakuma Refugee Camp. Two theoretical frameworks underpinned this study: the Resource-Based View (RBV) proposed by Barney (1991) and the Technology Acceptance Model (TAM) theory proposed by Davis (1986). The study adopted an analytical cross-sectional survey design for primary data collection using questionnaires. The targeted population was sampled using a stratified simple random sampling technique. A total of 111 enterprises were surveyed using a questionnaire. Descriptive statistics were generated to give summaries and describe the sample characteristics, while inferential statistics comprised correlation and regression analysis. The study found that mobile phone-based technology was a significant predictor of performance (r = 0.501, p-value =0.000 < 0.05). The study recommends that mobile phone-based technology should be prioritized since it leads to an increase in sales and profits for a firm through improved mobile phone transactions.

Innovative work behavior and self-efficacy: Does entrepreneurial leadership impact MSME business performance?

The current business performance of micro, small, and medium enterprises (MSMEs) must be able to innovate in business strategies in a competitive era. MSMEs are at the forefront of contributing to Indonesia’s Gross Domestic Product (GDP) and have a considerable role in the Indonesian economy. The study aimed to assess factors contributing to the business performance of MSMEs in Sidoarjo Regency, Indonesia. The total population was 277 MSME owners; using the purposive sampling technique with the Slovin formula, 144 respondents were obtained with an error rate of 5%. Data analysis used SEM-PLS with SmartPLS-3 software. The findings show that entrepreneurial leadership directly affects business performance and innovative work behavior, and innovative work behavior affects business performance. Then, entrepreneurial leadership influences business performance through innovative work behavior. Interestingly, there is no moderating effect of self-efficacy on the effect of entrepreneurial leadership on business performance. MSMEs need to have innovative work behavior to improve their business performance by applying entrepreneurial leadership to increase innovation in business strategies to compete and survive in a competitive era.

The Influence of Digital Financial Literacy on MSME Performance in Balikpapan City

The development of the world of technology that is happening more rapidly now makes access to the digital world more wide open and easier. However, not everyone can easily and understand how to use this access, especially related to the use of digital finance in the world of Micro, Small and Medium Enterprises (MSMEs) due to low public education. Lack of information and knowledge on how to use and utilize digital finance makes some entrepreneurs use it. MSME business owners must continue to play a role in supervising, bookkeeping and recording stock entry and exit, recording sales and payments is still done manually by most MSMEs in Balikpapan City. With the increasingly rapid developments in the digital world, MSME business actors are expected to be able to innovate all MSME activities in a Management Information System (MIS) as the aim of business development with technological transformation and speed of service in handling customers and business management. This study aims to examine the effect of digital financial literacy on the performance of MSMEs with a research approach using the questionnaire method for MSMEs in Balikpapan City. Multiple regression analysis was applied to test the effect of digital financial literacy on MSME performance by controlling for manager profiles and the special characteristics of MSME. The research results prove that Digital financial literacy has a positive and significant effect on the performance of MSMEs. Managers/owners with digital financial literacy skills understand financial concepts related to business, debt, savings, insurance, and investment in the digital era which ensures good performance of their business.

Analisis Manajemen Rantai Pasok pada UMKM Tahu Menggunakan Metode Economic Order Quantity (EOQ)

Tofu Micro, Small and Medium Enterprises (MSMEs) in Pandau Jaya Village are individual businesses operating in the food industry, especially tofu production. This research aims to analyze the supply chain performance of tofu MSMEs in Pandau Jaya Village and the impact of optimizing supply chain management on supply. This research method is descriptive qualitative using primary and secondary data. The research results show that the supply chain management of tofu products in Tofu MSMEs in Pandau Jaya Village is running well. All elements of the supply chain, including soybean agents, Tahu Pandau Jaya Village MSMEs, and consumers are running well. Supply chain management is considered effective, especially in transactions, policies and capital. Chain resources, such as people, technology and capital, operate optimally, supporting the smooth production of tofu. The chain business process is considered optimal, reflecting solid business relationships between supply chain members, based on good trust

The Effect of Integrated Entrepreneurship Development on the Performance of MSMEs in DKI Jakarta during the Pandemic Period

The Jakpreneur Program is a Micro, Small, and Medium Enterprises (MSMEs) development program organized by the Jakarta Government, aimed at fostering entrepreneurship in MSMEs and facilitating MSME players. However, the Covid-19 pandemic has had a significant impact on Jakarta, with the highest number of Covid cases, resulting in increased unemployment and a rise in self-employed individuals. The objective of this study is to investigate the performance differences, measured by profit, between MSMEs that participate and do not participate in the Jakpreneur program, which includes training, marketing, and licensing, by considering internal factors. This study uses data from food sector MSMEs provided by the Jakarta Provincial Office of Food Security, Marine and Agriculture Agency in the years 2020, 2021, and 2022. The results of the regression data analysis using Ordinary Least Squares (OLS) show that in 2020 and 2021, the marketing and licensing programs have a significant positive influence on MSME profits, while in 2022, the training program has a significant positive influence on MSME profits. On internal factors, the number of workers, male gender and access to credit have a significant positive influence on MSME profits in all years.

Performance of Micro, Small and Medium Enterprises in Aligarh District of Uttar Pradesh

The primary goal of this study was to examine the performance of micro, small, and medium enterprises (MSMEs) in the Aligarh district of Uttar Pradesh. The study examined numerous issues that MSMEs in the area were facing as well as their performance. This article is based on primary data that were gathered by a structured questionnaire and a Google survey, respectively, both of which were conducted offline and online. The research has shown the sample MSMEs owners’ and managers’ socioeconomic and demographic profiles. The average value of production, average sales, net profit, the value of raw materials consumed, amount of working capital, various sources of finance for MSMEs in the Aligarh district such as the value of fixed assets, amount of owned funds, and amount of borrowed funds have all been broken down component by component to highlight the performance of MSMEs. The article also covers the many issues that MSMEs in the research area confront. The chi-square test has been used to examine the relationship between an enterprise’s line of business and the aforementioned factors.

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

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

Micro, small and medium enterprises and their linkage with key actors in Ethiopia: developing entrepreneurial ecosystem mapping

Since micro, small, and medium enterprises (MSMEs) are a basic source of income and employment opportunities for the least developed countries, more emphasis has recently been given to those enterprises, and a number of research studies have been conducted. Ethiopia, as one of the Least Developed countries, could also benefit from those MSMEs if the sector is supported enough. Accordingly, this research is conducted to identify the basic determinants of the performance of MSMEs in Ethiopia and to try to develop an entrepreneurial ecosystem mapping to connect those enterprises with the concerned stakeholders, which can contribute to the improvement of the performance of MSMEs. Primary data from randomly selected 400 sampled enterprises is analyzed using ordered logistic regression, and data collected from stakeholder interviews is analyzed using descriptive analysis to develop the ecosystem mapping. Accordingly, academic institutions, such as universities, financial institutions, such as banks and credit associations, non-governmental organizations, such as GIZ and Reach for Change, and government organizations are important actors in entrepreneurship in Ethiopia. Finally, the result of the ordered logit model indicates that access to finance, training, and raw materials, experience, level of education, and sectoral dummy are statistically significant factors that affect the performance of MSMEs. Based on the results, we recommend the government of Ethiopia give more emphasis to MSMEs in different forms, such as providing support in the form of financial, training, market, and raw material linkages.

Effects of Microcredit on Micro, Small and Medium Enterprises Performance in Tanzania with Reference to Selected MSMEs in Iringa Municipality

The purpose of the study was to assess the effects of microcredit on Micro, Small and Medium Enterprises (MSMEs) performance in Tanzania, with reference to selected MSMEs in Iringa Municipality specifically, to examine the contribution of the loan amount on the performance of MSMEs, to examine the influence of interest rate on the performance of MSMEs and to determine the effect of initial capital on the performance of MSMEs. The targeted population was 874 MSMEs benefiting from microcredit services from Iringa Municipality, where a sample size of 274 MSMEs was drawn. A descriptive research design was employed, and a quantitative approach was applied to analyse data. Stratified sampling technique, simple random technique and Convenience sampling technique were used to select loan benefiting. The findings revealed that loans benefiting MSMEs at Iringa Municipality receive loans from financing institutions and use them to improve performance. Moreover, the study found that interest rate has no statistically significant on the performance of MSMEs in Iringa Municipality. In addition, findings revealed that there was statistical significance in the effects of initial capital on the performance of MSMEs. In the case of the normal regression output, the adjusted R2 equals 0.698, implying that the model explains about 69.8% variations in MSMEs performance. The study recommends that the Government should ensure that MSMEs receive appropriate loan amounts and should take proactive measures to regulate interest rates on microcredit loans. MSMEs should have a clear strategy for how these funds will be used. Financing institutions should recognise that loan provisions to MSMEs should be based on the specific needs of the business. Also, they should provide micro-loans at competitive rates that balance affordability for MSMEs and sustainability for the institution. For further studies, the researchers should conduct similar research in different regions or countries that will allow scholars to ascertain the general ability of the findings. Also, the researchers should conduct longitudinal studies that can provide invaluable insights into the long-term effects of microcredit on MSMEs’ performance

Accounting Practices, Financial Literacy And Financial Performance Of Micro, Small And Medium Enterprises

This study examines how financial literacy moderates the link between accounting practices and financial performance of MSMEs in the Republic of Kenya. Micro, Small and Medium Enterprises (MSMEs) are significant in developing many economies by creating employment, alleviating poverty and food insecurity, and contributing to the Gross Domestic Product. Despite their significance, MSMEs face multiple challenges that affect their capacity to achieve desired economic outcomes. The study employed an explanatory research design and utilized simple random sampling to select a representative sample. Data was collected from 398 managers/owners of MSMEs using a self-administered questionnaire. The hierarchical regression model was used to test the study hypothesis in SPSS vs.23. The study revealed that accounting practices and financial literacy have a positive and significant influence on MSMEs' financial performance. In addition, results show that financial literacy moderates the relationship between accounting practices and financial performance. The study underlines the importance of accounting approaches and financial literacy in improving MSMEs’ financial performance in developed and emerging nations. Given the scarcity of research in this context, it is critical to employ financial literacy as a moderating variable. The interaction results contribute to the body of knowledge and serve as a catalyst for improving the association between accounting practices and financial performance.

Aligning sustainability goals of industrial operations and marketing in Industry 4.0 environment for MSMEs in an emerging economy

PurposeIt is crucial for the Indian micro, small and medium enterprises (MSMEs) to implement a few of the most important Industry 4.0 (I4.0) technologies and reap maximum benefits of sustainability. This paper aims to prioritize I4.0 technologies that can help achieve the sustainable operations and sustainable industrial marketing performance of Indian manufacturing MSMEs.Design/methodology/approachI4.0-based sustainability model was developed. The model was analyzed using data collected from MSMEs by deploying analytic hierarchy process and utility-function-based goal programming. To have a better understanding, interviews were conducted.FindingsPredictive analytics, machine learning and real-time computing were found to be the most important I4.0 technologies for sustainable performance. Sensitivity analysis further confirmed the robustness of the results. Business-to-business sustainable marketing is prioritized as per the sustainability need of operations of industrial MSME buyers.Originality/valueThis study uniquely integrates literature and practitioners’ insights to explore I4.0’s role in MSMEs sustainability in emerging economies. It fills a research gap by aligning sustainability goals of industrial buyers with suppliers’ marketing strategies. Additionally, it offers practical recommendations for implementing technologies in MSMEs, contributing to both academia and industry practices.

The Effect of Financial Literacy on MSME Performance Through Financial Access and Financial Risk Attitude as a Mediation Variable

Micro, Small and Medium Enterprises (MSMEs) play an important role in increasing the rate of economic growth in developing countries, especially Indonesia. The purpose of this study is to test the variable that evaluates the performance of SMEs, namely the financial literacy of the organizers. Equipped with the median variable, namely access to financial facilities and financial risk tolerance. Through a quantitative approach and SEM data analysis. The sample numbered 165 respondents managing MSMEs in the Yogyakarta City area because they contributed a lot to the MSME sector in Indonesia. This study found a positive impact on financial literacy, access to finance and financial risk attitudes on the performance of MSMEs. It was also found that the mediating role of financial access and financial risk attitudes was related to the relationship between literacy and performance.

Sales Performance and Efficiency of E-Business Adoption Among Women-Owned Micro, Small, and Medium Enterprises (MSMEs) in Malaysia

The Covid-19 epidemic has eloquently demonstrated the potential of micro, small, and medium enterprises (MSMEs) in embracing technology. Anchored in the resource-based view (RBV), the purpose of this study was to develop and validate an integrated model encapsulating the factors that influence e-business adoption and its effect on the efficiency and sales performance of women-owned MSMEs in Malaysia. The model was tested via a quantitative methodology, with 158 women-owned MSMEs in Malaysia as respondents. Data analysis and hypothesis testing were performed using structural equation modelling (SEM). The findings established that organisational readiness, management support, competitive pressure, and information intensity are significant factors affecting e-business adoption among women-owned MSMEs. E-business adoption’s positive impact on these MSMEs’ efficiency and sales performance was further confirmed. The empirically verified model in this work contributes new insights to the present understanding of how e-business adoption affects small business performance. This framework is a potentially reliable tool in designing guidelines to encourage more female entrepreneurs to adopt e-business in their organisations.

Pengaruh Literasi Keuangan Dan Mindset Entrepreneur Terhadap Kinerja UMKM Di Pasar Alok Maumere

This study aimed to determine the effect of financial literacy and entrepreneurial mindset on the performance of Micro, Small, and Medium Enterprises ( MSMEs). This research employed a quantitative approach. The population in this study was 630 MSME players in the Alok market, Maumere. The sample was selected using the solvin formula resulting in 87 respondents. The data used in this study was primary data. The data were collected using questionnaires distributed to MSME players in the Alok market. The data were analyzed using descriptive statistical analysis, data qality test, multiple linear regression analysis, t-test, F test with the assisst of IBM SPSS, coefficient of determination. The results of this study indicated that partially and simultaneously financial literacy and entrepreneurial mindset had no effect on the performance of MSMEs in the Alok market, Maumere.

ENTREPRENEURIAL ORIENTATION AMONG MSMES IN BALI’S ECONOMIC RECOVERY DURING COVID-19 PANDEMIC

Bali is the most affected region by the tourism sector during pandemic with economic growth of -9.31% in 2020. The economic difficulties faced by the community, especially those who used to work in the tourism sector, made people turn to the Micro, Small and Medium Enterprises (MSME) sector in order to continue to earn income in the midst of uncertain conditions during the pandemic. This research reviewed some literature related to the role of MSMEs in Bali’s economic growth during pandemic. The results show that during the economic contraction, MSMEs have a big role in revitalizing the Bali economy. The increase in the number of MSMEs in Bali during pandemic implies that there are still many Balinese people who have a high entrepreneurial orientation. The good performance of MSMEs with a good entrepreneurial orientation is able to support Bali economy during pandemic which has experienced a drastic decline.

Impact of Inventory Management on Financial Performance of MSMEs in Santiago City

The study aims to investigate the impact of inventory management on the operational efficiency and financial performance of micro, small, and medium enterprises (MSMEs) in Santiago City. A correlational descriptive cross-sectional survey design was utilized on a sample of randomly selected 314 participants belonging to the merchandising MSMEs from Santiago City. Primary data was collected using self-administered questionnaires analyzed using frequency and percentage, mean and standard deviation, and linear regression. The results showed that MSMEs are efficient in inventory management, operation and have good financial performance. It further suggests a strong positive relationship between inventory management and operational efficiency and a moderate positive relationship between inventory management and financial performance. The study offers practical guidance to MSMEs on optimizing their operational efficiency and maintaining good financial performance through effective inventory management practices. It gives owners and managers valuable insights into specific areas that need improvement and the underlying factors that inventory management affects. Furthermore, the research deepens the understanding of the intricate relationship between inventory management, operational efficiency, and financial performance within the context of MSMEs in Santiago City, thus enriching the existing knowledge for researchers and practitioners.