Economic Growth, Poverty, Urbanization, and the Small and Medium Enterprises (SMEs) in Indonesia: Analysis of Cointegration and Causality

Jauhari, Hadi; Periansya, Periansya

doi:10.21512/bbr.v12i2.6573

Cited by 8 publications

(7 citation statements)

References 12 publications

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“…It articulated this diversity of resources as a business inspiration that SME activists who have limited capital can use. Rationally, SMEs employ local communities and migrants, thereby supporting superior economic growth (GDP) [91,92]. In turn, economic calm will increase, which is reflected in per capita income [93,94].…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants on Small Scale Business: An Empirical Evidence from Indonesia

Wijaya¹,

Jiuhardi²,

Za³

et al. 2023

IJSDP

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In 1997-1998, the resilience of small and medium enterprises (SMEs) was tested when the monetary recession paralysed Indonesia. At that time, only SMEs were detected as shining and the most prominent from other sectors. This study is oriented to investigate the effect of the quality of human resources (HR), capital, and business length on turnover, labor cost, market share, and profit. The study design is offline survey, where primary data is collected from a sample that invites 285 respondents in three zones of Indonesia. Sources of information focused on and addressed to three SME scales covering the fields of trade, industry, and services. Then, the data is processed, filtered, and set using the structural equation model (SEM). The findings confirm that the HR quality and capital drives an increase in turnover, labor cost, market share, and profit. At one point, the business length actually only stimulated turnover, labor cost, and market share, but did not generate significant profits. But, significant of labor cost, market share, and profit followed the increase in turnover. Similarly, between labor cost to market share and profit, where the results are significant. The market share affects profit. It is important for a country to realize that disruptions in financial access, HR capabilities, and experience attributes trigger the inhibition of domestic market performance. These three alternatives give birth to strong SMEs.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants on Small Scale Business: An Empirical Evidence from Indonesia

Wijaya¹,

Jiuhardi²,

Za³

et al. 2023

IJSDP

View full text Add to dashboard Cite

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“…Research with the subject of small and medium enterprises focuses on aspects of competitive advantage and marketing orientation [34][35][36], competition and business sustainability with an emphasis on technology [35,37], and strengthening human resources for productivity [38]. In addition, other researchers also recognize that small and medium enterprises play an important role in poverty control and the country's economy, including at the rural scale [39,40].…”

Section: Competition In the Context Of Small And Medium Enterprisesmentioning

confidence: 99%

Building Partnership or Competition: Village Business Sustainability in Indonesia

Effendi,

Sukoharsono,

Purwanti

et al. 2023

Sustainability

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Village-owned enterprises are expected to be a forum for village business groups to develop their economic potential. This research aims to understand the reality of village-owned enterprises and their implications for rural businesses. This research focuses on understanding the perspective of other village entities and asking whether these enterprises enhance the rural economy through partnership relationships or become competitors for rural small businesses. This study used a qualitative approach with informants from the village-owned enterprises management and villagers who run small businesses. The results showed that the village-owned enterprises runs a business that resembles the business fields of the villagers. This situation has unconsciously created a sense of competition for both parties. The atmosphere of competition between the two business entities has the potential to hinder the growth of the village’s local economy. This study recommends that village-owned enterprises evaluate their business activities and build a cooperation network for the sustainability of rural businesses. This research contributes to the enrichment and implementation of sustainability by capturing the context of rural business activities in Indonesia.

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“…The island of Bali is renowned as a popular tourist destination all over the world. Because the tourism sector is the most critical contributor to the Gross Regional Domestic Revenue in Bali, the performance of Bali's MSMEs in the tourism industry serves as a benchmark for the performance of Indonesia's MSMEs in the tourism industry (Jauhari & Periansya, 2021). The agricultural and industrial sectors come second and third, respectively, after the tourism sector (Soritua, 2015).…”

Section: Introductionmentioning

confidence: 99%

Barriers to Digital Transformation among MSME in Tourism Industry: Cases Studies from Bali

Lei¹,

Indiran²,

Kohar³

2023

IJARBSS

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Bali is an internationally well-known tourism destination. The performance of Bali's micro, small, and medium-sized enterprises (MSMEs) in the tourism industry serves as a benchmark for the Indonesian tourism industry. Digital transformation can assist firms in adapting to new business models and recovering swiftly from epidemics. The reality, however, reveals that the digital transformation process of MSMEs in Bali is slow, particularly in the tourism sector, and must catch up. This study intends to analyze the barriers MSMEs experience during digital transformation and identify the specific digital technologies employed by MSMEs. Six Balibased MSMEs are interviewed through the qualitative methodology. According to the findings, the key impediments are (1) an individual's lack of digital skills, (2) organizational and cultural barriers, such as a traditional mindset missing digital awareness, and (3) environmental barriers, such as a lack of resources and digital infrastructures. Furthermore, the survey reveals that social networking is the most widely utilized digital technology by MSMEs in Bali. The internet portal offers SMEs supplementary marketing and advertising options. This research improves our understanding of the current situation of Indonesian tourism-related MSMEs and enriches the academic study of MSMEs. In addition, it provides a reference to entrepreneurs undergoing digital transformation.

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Economic Growth, Poverty, Urbanization, and the Small and Medium Enterprises (SMEs) in Indonesia: Analysis of Cointegration and Causality

Cited by 8 publications

References 12 publications

Determinants on Small Scale Business: An Empirical Evidence from Indonesia

Determinants on Small Scale Business: An Empirical Evidence from Indonesia

Building Partnership or Competition: Village Business Sustainability in Indonesia

Barriers to Digital Transformation among MSME in Tourism Industry: Cases Studies from Bali

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