Investment climate for MSMEs towards a green economy

Abstract

Indonesia's development has not provided the optimum portion of the support to Micro, Small & Medium Enterprises (MSMEs), even though these MSMEs are the foundation of economic growth and as a supporter of the national economy of developing countries that are able to absorb up to 99% of the workforce, and are able to complement large industrial products in the local and local markets. The low government support makes MSMEs less empowered and less competitive in the global market. In this research problem, what is the role of Islamic economics and the green economy in increasing the capacity of MSMEs in order to advance the national economy? The limitation of the very cliche of MSMEs is the gap in accessing formal financial institutions in increasing capital, this is due to the weak management of MSMEs so that they are not bankable. Indonesia's financial inclusion as of 2019 was 76%, and 25% of it has not been served by formal financial services. This study uses a descriptive analysis approach, this study analyzes data obtained from secondary sources. The type of research used is based on a normative juridical approach. Normative juridical research is legal research that examines library data, including legal principles and legislation. According to the type of norm study research, data acquisition is sourced from literature research related to the problem being studied, such as books, laws, and others. The analytical method used is normative qualitative which examines and interprets and reconstructs the statements contained in the legislation. The theory used is the theory of people's welfare. The results of this study can be a recommendation and can be used by economic and financial policymakers in increasing the capacity of MSMEs based on sharia economics and making MSMEs the frontline in supporting national economic growth so that Indonesia advances without depending on foreign investment.

Is Indonesia Destined to Become the World's Market for Halal Products?

“…Orosz in Suparji states that MSMEs can make a more optimal contribution by increasing access to capital and assistance to increase effectiveness and efficiency in production so that they have a level of global competitiveness in line with the conditions faced as a consequence of the free market (Suparji, 2021).…”

“…Changing the business ecosystem to a green economy poses a challenge for MSMEs to remain competitive; hence, the constraints they face need to be addressed immediately, enabling them to continue growing and becoming a mainstay in the national economy. Access to financing, lack of credit guarantees, production efficiency, and effectiveness remain serious obstacles MSMEs face in global competition, which must be considered and solutions must be sought through government regulation and policies (Suparji, 2021).…”

Türkiye’de Teknolojik Gelişimin Ekonomik Büyümeye Etkisi

“…Bu sonuç Huang vd. (2019) ve Suparji (2021) ile aynı doğrultuda olup bu bulgunun nedeni şu şekilde açıklanabilir; işgücündeki bir artışın ekonomik büyüme üzerinde kısa vadede hemen bir etkisi olmasa da verimlilik artışına katkıda bulunabilir. Daha büyük bir iş gücü, daha fazla yeniliğe, gelişmiş teknolojiye ve gelişmiş işçi becerilerine yol açabilir; bu da üretkenlik düzeylerini yükseltebilir ve sonuç olarak uzun vadeli ekonomik büyümeyi teşvik edebilir.…”

Human Capital and Performance of Micro, Small and Medium Enterprises: A Literature Review

“…Micro, Small and Medium Enterprises (MSMEs) play an important role in the economy by contributing to various sectors in the life of a country, namely: economic growth ( (Suparji, 2021); (Natalia Arta Malau & Teguh Pamuji Tri Nur H, 2022)); job creation (Kakkar & Kumar, 2020); reducing regional and social inequality (Hayati & Fatarib, 2022); national income, improving living standards, and increasing national economic competitiveness and resilience (Shetty & S., 2022); bridging the gap between urban and rural development (Dwi Nata et al, 2022); accounts for most of the country's GDP and attracts foreign direct investment (Lamba & Jain, 2021); adaptability to survive economic downturns (Syal, 2015); reducing income inequality among the population (Rekha & Jain, 2022); increasing productivity through investment and technological change, and having advantages in terms of flexibility compared to large companies (Risnawati et al, 2022); and MSMEs are the main source of supplies and support services for large businesses (Nasser, 2022). This important contribution of MSMEs needs to be supported by competent human resources for the development of MSMEs so that MSMEs become more competitive, innovative and can enter the global market where MSMEs have various challenges that must be addressed in order to progress and develop.…”