Can Small and Medium Enterprises Survive in MEA 2025: A Case Study of Agro-industry SMEs in Indonesia

Abstract

Food processing agro-industry is a creative industry which immensely contributes to economic development, employment, and Gross Domestic Product (GDP) in Indonesia. Competitiveness is a combination of successful inside and outside of Small Medium Enterprise. Thus, this research aims to 1) get an overview related to the SME food sector and its competitiveness, and 2) understand the influence of entrepreneurial marketing and government policy to Tempe (soybean-cake) chips SME's competitiveness by using Structural Equation Model (SEM) toward MEA 2025. This quantitative research is using 64 soybean cake chips entrepreneurs as a sampled purposively. Data analyzed with Entrepreneurial Marketing concept in 7 dimensions, and SEM PLS to understand the relation between the important factors in developing the SME market. The result shows that the government policy is insignificant, influential policy but the effect is inconsiderably significant because there is technological assistance which is not targeted yet. Regarding capital, the craftsmen prefer using their owned-capital. The entrepreneurs expected for focusing on the service quality, raising the selling price while maintaining the quality, and innovating their business to have a different character than competitors. Good relationships with consumers must be maintained so that the loyalty customer can achieve.

How Consumer Attitude Mediates Risk Perception and Trust in Using Food Delivery Application

“…One study revealed that early information sharing significantly lowered perceived risk and enhanced assessments of agency performance (Elisa et al, 2022). Another study found that perceptions of personal in business and government, and the belief that technology concerns could be managed all had a substantial impact on concern (Haryati et al, 2019). Renaldi & Pradana (2023) believe that disclosing ambiguity in risk estimations could cause dispute or confusion among the public rather than resolve it.…”

Business Competitiveness Strategy of Processed Mushroom in East Java: A Resource-Based View Model Approach

“…Entrepreneurship or entrepreneurial orientation has a relation to performance (Haryati et al, 2018;Haryati et al, 2019). Entrepreneurial Orientation (EO) is often mentioned as an antecedent of growth, competitive advantage, and superior performance, and prior empirical research has often shown a positive relationship between EO and performance appears to exist.…”

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“…Research about marketing and entrepreneurial orientation has already implemented in small business (Haryati et al, 2018) (Haryati, Lilavalicakul, & Surrahman, 2019). Marketing orientation has significant influence to business performance (Ngai, Jimmy, & Ellis, 1998).…”