Small Micro Enterprises Research Articles

Building Resilient Micro-Small Enterprises: A Case Study of MSEs In The Midst of The Covid-19 Pandemic

The pandemic has affected various sectors of life. The pandemic has attracted the attention of many parties to assess the impacts that arise outside of health impacts, one of which is the impact on micro and small enterprises (MSEs). The central role of MSEs in the national economy is the primary driver of research on how MSEs build resilience in times of crisis. This study focuses on the strength of MSEs during the Covid-19 pandemic. MSEs are the mainstay of the national economy. Therefore, various aids for the recovery of MSEs have become the focus of national economic recovery throughout the world, including Indonesia. This study uses quantitative and qualitative methods on MSEs that are still able to maintain their continuity to this day. This research focused on revealing several characteristics of MSEs’ resilience according to the number of workers, income trends, and the extent to which individual resilience affects organizational resilience. The analysis also revealed a process-based model of how MSEs builds resilience during this ongoing crisis.

RETRACTED ARTICLE: Financial risk assessment to improve the accuracy of financial prediction in the internet financial industry using data analytics models

A sound credit assessment mechanism has been explored for many years and is the key to internet finance development, and scholars divide credit assessment mechanisms into linear assessment and nonlinear assessment. The purpose is to explore the role of two important data analytics models including machine learning and deep learning in internet credit risk assessment and improve the accuracy of financial prediction. First, the problems in the current internet financial risk assessment are understood, and data of MSE (Micro small Enterprises) are chosen for analysis. Then, a feature extraction method based on machine learning is proposed to solve data redundancy and interference in enterprise credit risk assessment. Finally, to solve the data imbalance problem in the credit risk assessment system, a credit risk assessment system based on the deep learning DL algorithm is introduced, and the proposed credit risk assessment system is verified through a fusion algorithm in different models with specific enterprise data. The results show that the credit risk assessment model based on the machine learning algorithm optimizes the standard algorithm through the global optimal solution. The credit risk assessment model based on deep learning can effectively solve imbalanced data. The algorithm generalization is improved through layer-by-layer learning. Comparison analysis shows that the accuracy of the proposed fusion algorithm is 25% higher than that of the latest CNN (Convolutional Neural Network) algorithm. The results can provide a new research idea for the assessment of internet financial risk, which has important reference value for preventing financial systemic risk.

Islamic Business Ethics and Its Impact on the Performance of Small Micro Enterprises (SMEs) Actors in Serang Regency

This study aims to determine the impact of Islamic business ethics on the performance of Small Micro Enterprises (SMEs) Actors in the Serang Regency. The population in this study is Small Micro Enterprises (SMEs) Actors in Serang Regency, Banten Province. The respondents of this study were 70 SMEs actors in Serang Regency, Banten Province. The research method used is a quantitative method with data collection methods in the form of a questionnaire. The data were analyzed using instrument tests in the form of validity and reliability tests, classical assumption tests in the form of normality tests and heteroscedasticity tests, and hypothesis tests in the form of simple linear regression tests and correlation coefficient tests. The results of this study indicate that Islamic business ethics has a significant positive effect on the performance of Micro and Small Usama in Serang Regency, with a total contribution of 46 percent, while the rest is influenced by other variables not examined in this study.

Digital-Based Economic Recovery Program For MSMEs in Indonesia

The Covid-19 pandemic has stagnated the majority of economic sectors, especially MSMEs. This situation is because most MSMEs enterprise cannot develop and end up in bankruptcy which makes MSMEs enterprise change their sales strategy through a digitalization scheme. Even so, the Covid-19 pandemic has indirectly led to new changes in the Indonesian business system. This change is the shift of offline businesses to digital businesses, also known as the digital entrepreneurship phenomenon. Social media and the marketplace can be a concept to make it easier for MSMEs enterprise to get more comprehensive marketing access. This research aims to initiate the ideal e-marketing adoption model for small micro-enterprises in Indonesia. The research method used is a qualitative exploration approach with primary data obtained from observations and interviews. The sampling technique is a snowball, where the sample is obtained gradually from one respondent to another. The flow of research analysis is data collection, data reduction, data presentation, and concluding. This program includes two categories, including (1) startup training and development and (2) scaleup training and development. The government can carry out the management of this program online single submission to minimize errors and monitor the program's progress. This program is expected to be a role model based on ta'awun mutual relations so that the process of empowering MSME actors is optimal and supported by the use of appropriate technology.

Utilization of Productive Zakat and its Effect on Empowerment of Small Micro Business (SMEs) in Serang Regency

This study aims to analyze (1) Utilization of productive zakat in BAZNAS Serang Regency and (2) The effect of the utilization of productive zakat in the form of capital on the empowerment of Small Micro Enterprises (SMEs) in Serang Regency. The object of this research is the National Amil Zakat Agency (BAZNAS) of Serang Regency and Small Micro Enterprises (SMEs) that receive venture capital assistance from BAZNAS Serang Regency. The method used in this study is a mixed-method with a sequential explanatory approach, collection and analysis of qualitative data in the first stage, then followed by the collection and analysis of quantitative data in the second stage. The findings of this study show that (1) Utilization of productive zakat BAZNAS Serang Regency is done through small business capital assistance program given to seven types of small micro-enterprises (SMEs) namely stalls, machete craftsmen, traders, herbal therapy/herbal traders, culinary, sandal name making and travel. Small business capital assistance is distributed in the form of rolling capital loans using qardul hasan contract (repayment amount according to the loan amount), if there is business bankruptcy due to default of SMEs actors, then BAZNAS Serang will resolve it through a partner from local village officials, but if the bankruptcy occurs without any element of default, then BAZNAS Serang Regency will remove SMEs from the nominative if the assistance period has exceeded 5 years. and (2) the utilization of productive zakat in the form of business capital has a positive and significant effect on the empowerment of SMEs in Serang Regency with an influence contribution of 22.7% and the remaining 77.3% is influenced by other factors not examined in this study.
 Keywords: Empowerment, Productive Zakat, Small and Micro Enterprises (SMEs).

Advice and assistance on dust exposure controls: An effective regulatory approach at micro-small enterprises in Australia

Advice and assistance on dust exposure controls: An effective regulatory approach at micro-small enterprises in Australia

Sosialisasi dan Pendampingan Pencegahan Penularan Covid 19 Dikalangan UMKM Untuk Meningkatkan Kepercayaan Konsumen di Kota Cimahi

This article begins with the uniqueness and problems related to the socialization and assistance for preventing transmission of Covid 19 among small and medium micro-enterprises (MSMEs) in Cimahi City. It can be seen from Covid 19 transmission, which has not been completed until now. The purpose of the community is to provide socialization and assistance regarding the prevention of transmission of Covid 19 and the use of personal protective equipment in MSMEs in the city of Cimahi. The method used is descriptive-qualitative. It is sampling through purposive sampling. Secondary data collection techniques through regulations and the collection of primary data through observation and in-depth interviews to MSMEs in Cimahi City. This community service is conducted online through virtual media for training and offline, namely conducting face-to-face training directly by paying attention to health protocols. The validity of the data in this study was obtained by conducting credibility testing using triangulation as checking results from various sources of informants. The study results in this community service activity have similar perceptions in preventing transmission of Covid 19 in MSMEs that are more targeted by utilizing the Cimahi City MSME for prevention of Covid transmission 19.

Effectiveness of Musharakah Financing in Empowering Small Micro Enterprises

The present study aims to analyse the effectiveness of musharakah financing for empowering micro-businesses in the perspective of entrepreneurs. This research is qualitative research using a critical analysis method. This study uses interviews as a research instrument to find out what factors affect the effectiveness of musharakah financing in empowering micro small business of BMT entrepreneurs in the Special Region of Yogyakarta. Entrepreneurs from two BMT in Yogyakarta had been interviewed. The results showed that BMT musharakah financing played an important role in the business development of Micro and Small Business, especially in terms of increasing business capital, easy access to take financing and a small amount of instalments. In addition, musharakah financing is effective in encouraging MSE empowerment, to increase the amount of merchandise inventory, add new types of products, expand businesses and add new equipment for business facilities. This study limits the ability to generate findings to a larger population of small-micro enterprises which obtain shariah financing from Islamic microfinance institutions (Baitul Maal Wat Tamwil) in Indonesia. The research findings can be used on how to empower small-micro enterprises with the Islamic financing and the development of Islamic microfinance institutions. This paper has contributed to the approach of empowering small micro-businesses with musharakah financing, which is considered to have a less contribution to BMT income. In addition, this study uses a critical analysis method to get a new perspective on the use of musharakah financing from the view of small entrepreneurs.

Poverty and SMEs: A New Pradigm of SDGs Development

Poverty alleviation and micro-small enterprises are the essential topics in discussing the paradigm of Sustainable Development Goals (SDGs). Micro and small businesses are considered as a panacea to alleviate poverty. So the relationship between poverty and the existence of micro and small enterprises is theoretically unidirectional. In other words, if poverty increases, micro, and small enterprises will also increase. To see the effect of poverty on micro and small businesses, this study will use the Village Potential Data (Podes) 2018 with a total of 8559 villages/wards in Central Java Province. Apart from poverty, this study will also examine the effect of technology as represented by the number of electricity customers, health from the number of supporting health centers, and finally education represented by the number of Public Elementary Schools (SDN), State Junior High Schools (SMPN) and State Senior High Schools (SMAN). By using multiple regression models, an interesting relationship is found. Those that have a unidirectional relationship to micro and small enterprises are poverty, technology, health, and primary education (SDN). The role of education in the growth of micro and small businesses strengthens Duflo's thesis (2001) on the effect of education on reducing unemployment which earned him the Nobel Prize in 2019. Meanwhile, junior and secondary education for its effect on micro and small enterprises is negative. This showed that the impact of secondary education is that it provides the possibility to work in other sectors outside of micro and small enterprises

TAX AND ACCOUNTING SYSTEMS OF SMALL AGRICULTURAL EN-TERPRISES IN THE CONDITIONS OF EUROPEAN INTEGRATION

Globalization processes around the world affect the activities of economic entities, which in turn leads to changes in their accounting and taxation systems. The article is devoted to the study of the peculiarities of the application of the simplified system of accounting and taxation of agrarian businesses of small businesses in order to identify problematic aspects and areas of state support for their functioning in the context of European integration. A study of the main aspects of the Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand, in terms of accounting and taxation. It is determined that the implementation of domestic legislation to the regulations of the European Union (directives) is tangible for both businesses and individuals. Analytical data on the activities of small busi-nesses in Ukraine, including agricultural enterprises, are presented. The results of the analysis show a decrease in the number of small enterprises for the period 2015-2019. At the same time, the volumes of produced and sold products of small businesses and micro-enterprises are growing, which testifies to the importance of the activities of these businesses. It is determined that the conditions of production and economic activity of business entities are accompanied by constant changes in current legislation, which causes uncertainty in their position in the competitive environment, leads to the risk of transactions and increased tax burden, and as a result – business closure or withdrawal in the shadows. "The current systems of taxation of small businesses are studied and their advantages and disadvantages are identified. The main criteria for assigning business entities to the group of small businesses in the agricultural sector, taking into account the Tax and Commercial Codes of Ukraine, as well as the provisions of the Law of Ukraine "On Accounting and Financial Reporting in Ukraine". The system of taxation and accounting of small agricultural enterprises is studied. It was found that the current situation in agriculture indicates the shortcomings and lack of efficiency of the tax system, which requires scientific and methodological support for a consistent and stable tax policy for this category of taxpayers, the use of tax incentives for small businesses, improving the simplified taxation of small businesses . Examining the organization of accounting for small businesses in the context of European integration, the framework of the feasibility of changes in the accounting system. It is noted that a certain problem is the inconsistency of financial and tax accounting for the formation of a harmonized information product for different groups of users. The opinion is expressed that the fiscal orientation of accounting should be reoriented to the needs of the management system and high-quality information support of stakeholders, including foreign investors. It is noted that the legislation on ac-counting and taxation systems, opening and registration of small and micro enterprises needs to be changed. In order to properly support the development of small business, it is proposed to create favorable conditions for taxation and a clear accounting system: providing information and financial support for the process of business organization and the transition to international accounting standards; organization of the system of training of entrepreneurs and retraining of accountants; streamlining mechanisms to protect the rights of small businesses.

The role of Islamic social finance during Covid-19 pandemic in Indonesia’s economic recovery

PurposeThis study aims to propose Islamic solutions to the Covid-19 health and economic crises, specifically using Islamic social finance (ISF) instruments, including zakat, infaq and waqf.Design/methodology/approachThis study applies the qualitative content analysis method, guided by a model of composite approaches of poverty alleviation in Islam, integrated Islamic commercial and social finance (IICSF) and crisis management of Umar bin Khattab, to construct various programs and/or policy actions toward economic recovery in Indonesia.FindingsThe results show that ISF with its instruments, especially zakat, infaq and waqf could help the government and the economy to recover from the crisis. The proposed solutions include: save lives, including medical assistance using zakat-infaq and health-care waqf using waqf; save households, by creating a social safety net and graduation program using zakat-infaq; save businesses, especially micro-small enterprises (MSEs), through financial and business assistance (especially digital marketing) leveraging zakat-infaq-waqf and save financial institutions, especially micro-small financial institutions, by the development of cash waqf and the adoption of fintech and IICSF, especially in Islamic financial institutions targeting MSEs.Research limitations/implicationsThis study is exploratory in nature, which needs further investigations using more sophisticated qualitative and/or quantitative methods.Practical implicationsIf the above programs using ISF instruments are implemented, the economic surplus would be re-established and the acceleration of economic recovery can be realized.Social implicationsThe successful adoption of ISF could at the same time reduce poverty, accelerate MSEs development and improve equitable well-being.Originality/valueThe Covid-19 pandemic has caused health, economic and social problems, which must be solved holistically, including ISF within IICSF.

Entrepreneurial Competence and Growth of Micro-Small Enterprises in Kiambu County, Kenya

Micro and small enterprises sector in Kenya is characterized by high mortality rate, three out of five fail within the first few months of operation, over 60% fail each year; and most do not survive to their third anniversary. Despite the significance of entrepreneurial competence in small business, it is not clear the influence of entrepreneurial competence on growth micro and small enterprises. Therefore, this study assessed the effect of entrepreneurial competence on growth of micro and small enterprises in Kiambu County. The specific objectives were; to establish the effect of innovation competency, leadership competency, networking competency, and risk-taking competency on the growth of micro and small enterprises. Descriptive research design was used and data collected from 1274 micro and small enterprises owners or managers. Stratified random and simple sampling was used to arrive at 304 micro and small enterprises. The collection of data was done via questions emailed online by the researcher to micro and small enterprises owners. Descriptive measures and regression analysis were used to explain the relationship between variables. It was discovered that the majority of respondents used various innovative technologies in their businesses, including Mshwari and KCB-Mpesa mobile banking technology. The findings also revealed that majority of micro and small enterprises have adopted various leadership competency facets such as results and performance-based traits, listening and engaging with workers, employee engagement (rewarding and facilitating their wellness), avoidance of unethical behavior (drugs and alcohol abuse), and supporting staff teamwork. As part of their network strategies, the majority of the respondents partnered up with other vendors for joint sales, approached former clients, and created multiple revenue streams. Cautious decision-making, taking manageable risks, careful risk analysis, and measured moves all had an effect on a company's growth. The study concluded that innovation, leadership, networking and risk-taking competencies have a positive and significant effect on growth of micro and small enterprises. The recommendation was that micro and small enterprises should embrace innovation competency as a means of enhancing their development, owners should improve their leadership skills, which, according to the results, is a critical component of firm growth and success, entrepreneurs should accept networking as a means of gaining a competitive edge and should follow risk-taking strategies by making calculated moves in their operations and carefully analyzing the available options in order to maximize their chances of landing on the best option.

THE SURVIVABILITY OF SMALL MICRO ENTERPRISE (SME) IN INDRAGIRI HULU DURING THE EPIDEMIC

The spread of Corona Virus in along 2020 is unpredictable and uncontrolled. According to this condition, a lot of Big Company weakened and got involved in to a worst situation and even collapse. And of course, Small Micro Enterprise (SME) will be or had been bothered by the impact. Indonesian Government has made various efforts to avoid the effects of the COVID-19 epidemic on SME. There are a lot of ways and approaches implemented to overcome it. The objectives of the study is to find win-win solution for SME to keep survive during the COVID-19 epidemic. The population of the study is the Indragiri Hulu SME Entrepreneurs. The Category of five years are selected to be the sample which is limited to 10 successful survival entrepreneurs that represents the descriptive category. Moreover, the data analysis technique used in this study was data analysis with a data reduction model that was obtained from data collection and data display. The results of this study show six strategies based on push and pull factors theories, as social psychology theory which develop the survivalist entrepreneurship in Indragiri Hulu. The strategy also needs to pay attention on opportunity, added value, necessity, overcome and avoiding dissatisfaction of the previous way. Furthermore, it is also suggested that an entrepreneur of SME players needs to play strategy in order to establish and survive the business during the epidemic, because the epidemic is not the end of everything.

Capacity building influence on waste management among horticultural processing medium and small microenterprises in Kenya

Waste management includes those activities and actions required to manage wastes from inception to its final disposal. These include collection, transport, treatment and disposal of waste together with monitoring and regulation of waste management process. Inadequate and inappropriate knowledge of handling of horticultural wastes may have serious health implications and a significant impact on the environment as well. This is so because, if people possess good knowledge towards waste management, they can protect themselves from infectious diseases and keep the environment clean. This affects people’s attitude and most people due to lack of capacity or training on how to handle wastes, do not bother to dispose wastes appropriately. This study therefore, assesses the influence of capacity building on waste management amongst horticultural processing Micro, Small and Medium Enterprises (MSMEs) in Kenya. Using descriptive research design, the data were collected using structured questionnaires from 31 Certified Horticultural processing MSMEs in Kenya derived from Nairobi, Central and Western regions after undergoing various trainings on waste management. The results indicated that the majority of those engaged in horticultural processing MSMEs business are married (90.3%), affirming the family-oriented business tier. Further, the results showed that, before conducting training to the MSMEs, their level of knowledge on reduction in quantity of waste, waste management was at 58% and 68%, respectively. After training the result showed a high level of improvement at 87% and 83.9% on the same variables. The results further showed changes on waste management before and after capacity building with a mean of 9.29 and 16.70 respectively. Therefore, the study established a significant relationship with a p-value of 0.000 between capacity building and waste management in horticultural processing MSMEs in Kenya.

DIGITAL MARKETING CHANGES OF MICRO-SMALL ENTERPRISES BEFORE AND DURING COVID-19 PANDEMIC IN BOGOR, INDONESIA

The advance of information technology has opened up the digital marketing which spreads and is adopted fast. Micro-small Enterprises (MSEs) has also adopted this technology, especially during the Covid-19 pandemic due to the restricted movement policy. This paper aims to analyze digital marketing used by MSEs during this Covid-19 pandemic in Bogor, Indonesia. Specifically, the objectives are (1) to identify digital marketing used by MSEs before and during Covid-19 pandemic, and (2) to analyze the obstacles and challenges in utilizing digital marketing by MSEs in Bogor, Indonesia. Questionnaire survey was conducted online to MSEs in Bogor in August-September 2020 with 27 respondents filled up the form. The respondents of MSEs in this study realized the importance of digital marketing, which the majority has already utilized, and its use has even increased during the pandemic. The results of this study showed that firstly, the majority of MSEs utilized social media and WhatsApp group as their digital marketing before and during the pandemic, in which around 11 percent of respondents started to utilize digital marketing to increase their sales during the pandemic. Secondly, the respondents were aware of their limited time and skills in presenting good content marketing in their social media. However, they realized digital marketing offers an opportunity to expand their market. Keywords: content marketing, information technology, social media, WhatsApp group

Design and Analysis of Intelligent Small-Micro Enterprise Cloud Service Model

The development of a new generation of information technology and the construction of information infrastructure have not only led to a rapid increase in enterprise productivity, but also become a revolutionary driving force for the transformation of enterprises to smart enterprises. The cloud service platform for smart small-micro enterprises researched and designed in this paper solves the troubles of traditional manual recording, heavy and inconvenient information aggregation. It is a kind of small-micro enterprise with multi-organization, multi-tenant, heterogeneous. The intelligent cloud service platform with features such as foreign land can promote more small-micro enterprises to join the ranks of informatization.

A Model of Competitiveness of Coastal Women's Micro-Small Businesses in South Sulawesi

This study aims to analyze the competitiveness of small micro business for coastal women and to design a model for increasing the competitiveness of their businesses. The research analysis units were a woman or group of women who run small micro-enterprises taking raw materials from fisheries and marine products. Primary data and secondary data were analyzed through descriptive statistical approaches. The findings of this study include (1) in generally, the competitiveness of women's Small Micro Enterprises (WSMEs) living on the coast which was still relatively low caused by the limited coverage of market and the too simple technology production. (2) a model of increasing competitiveness for women's SMEs based on a systems was required. To improve the competitiveness of small micro-business products for women living on the coast, there should be an effective synergy of programs offered by competent institutions such as universities, business, government, financial, and community.

МАЛЫЕ И МИКРОПРЕДПРИЯТИЯ КАК ОСНОВА РЕГИОНАЛЬНОГО РАЗВИТИЯ

The article highlights topical issues related to small business and microenterprises as the main subject of the region's development. The normative-legal acts in this direction are analyzed. The indicators of the turnover of small and microenterprises in the context of the subjects of the Central Federal District of Russia for 2018–2019, as well as the number of people employed in the economy, are analyzed. The infrastructural objects of support of business structures operating on the territory of the region are given. A new financial infrastructure mechanism for supporting business structures in the region is proposed. Keywords: small and microenterprises, national project, turnover, number of employees, infrastructure facilities, region, subject, umbrella guarantees.

Comprehensive Study of Small Micro-Enterprise Credit Risk Quantification and Credit Decisions

In order to solve the problem of bank credit risk quantification and credit alloca-tion strategy for small, medium and micro enterprises, This paper deals with the data indicators of 123 enterprises with credit records, Logistic regression model and RAROC (risk-adjusted return) model are used comprehensively, the default probability of an enterprise is obtained as the quantitative result of credit risk, and according to the risk quantification results to develop credit strategy. Finally, comprehensive consideration of a variety of emergent factors on the different impact of enterprises, and make adjustments to your credit strategy.

Determinan Inovasi Perusahaan Menengah Besar di Sumatera Utara

Tujuan dari penelitian ini adalah untuk mengetahui karakteristik inovasi perusahaan menengah besar (UMB) di Provinsi Sumatera Utara. Penelitian ini juga bertujuan untuk menentukan determinan inovasi menggunakan metode Regresi Binomial Negatif. Penelitian ini mengolah 12.342 mikrodata perusahaan menengah-besar yang diperoleh dari Sensus Ekonomi 2016-Lanjutan Pendataan Usaha Menengah Besar (UMB) dan Usaha Mikro Kecil (UMK). Pengumpulan data ini dilakukan oleh Badan Pusat Statistik pada tahun 2017. Hasil analisis deskriptif menunjukkan bahwa inovasi pemasaran dan inovasi produk adalah tipe inovasi yang paling banyak dilakukan oleh UMB di Sumatera Utara. Variabel penggunaan internet dan pengembangan usaha merupakan indikator inovasi yang paling banyak dilakukan, sedangkan kegiatan penelitian dan pengembangan (R&D) serta variabel kepemilikan Hak atas Kekayaan Intelektual adalah indikator inovasi yang paling sedikit dilakukan. Dari hasil analisis inferensia, didapatkan bahwa model kategori sektor ekonomi yang seluruh variabel independen (indikator inovasi)-nya signifikan terhadap inovasi adalah model kategori sektor C (Industri Pengolahan), G (Perdagangan Besar dan Eceran; Reparasi dan Perawatan Mobil dan Sepeda Motor), H (Pengangkutan dan Pergudangan), I (Penyediaan Akomodasi dan Penyediaan Makan Minum), K (Aktivitas Keuangan dan Asuransi), N (Aktivitas Penyewaan dan Sewa Guna Usaha Tanpa Hak Opsi, Ketenagakerjaan, Agen Perjalanan dan Penunjang Usaha Lainnya), P (Pendidikan), R dan S (Kesenian, Hiburan, dan Rekreasi; dan Aktivitas Jasa Lainnya). Variabel pelatihan tenaga kerja dan variabel pengembangan usaha menjadi salah satu indikator inovasi penting karena berpengaruh hampir di seluruh sektor ekonomi.