The Development of Good Micro, Small and Medium Enterprises Governance Indicators

Abstract

A systematic literature review method was used in this study to find good governance for micro, small, and medium-sized businesses (MSMEs). The SEM-PLS approach was utilized to assess the effect of MSMEs' owners' competencies on the level of governance model implementation and the performance of MSMEs. The test results suggest implementing the governance model's concept can improve business performance. To be effective, however, owners of MSMEs must be willing to invest in their professional growth. Thus, based on the research findings, the MSMEs governance model, which is unique to this study, can serve as a standard for MSMEs' performance and a reference for various stakeholders involved in MSMEs' development initiatives.JEL Classification: G3, M21How to Cite:Rinaldo, D., Sari, P. A., Sari, W. P. & Miharja, R. (2023). The Development of Good Micro, Small and Medium Enterprises Governance Indicators. Etikonomi, 22(1), 93–118. https://doi.org/10.15408/etk.v22i1.25625.

Analyzing the Impact: The Role of MSME Growth in Reducing Unemployment Amidst High Levels of Poverty

“…In addition, the proper governing of the MSMEs to enable them to fully participate in the eradication of poverty is important. Formulating indicators for best MSME governance practice can be useful to different authorities, especially governments, and practitioners, in the achievement of greater MSME growth, therefore poverty diminution [21] Among the subsectors examined in Ethiopia, MSMEs have been employed in ways indicated to enhance sustainable development by creating employment opportunities, improving life standards, and eradicating poverty in the sub-Saharan Africa region. [1].…”