Are SME’s Product and Local Government Programs (OVOP)Coherent?

Abstract

In the developing countries, the government has a vital role in supporting the development of SME’s as one of economic pillars. There are studies which state that the government has played an active role in supporting the development of SME’s, either from policy or implementation, but several studies argue that government failure in supporting and creating business climate has caused business stagnation for SME’s. This study aims to analyze the coherence between government policy through Regional Superior Products development (under OVOP) program with SME’s main product choice in Central Java province. The analysis using analytic hierarchy process (AHP), on the data collected through focus group discussion (FGD), questionnaire, and secondary data. The result of this study shows weak evidence that there is coherence between government program and SME’s/ SME’s main product choice, there are only 6 districts/cities that have coherence SME’s: Grobogan district, Blora, Rembang, Magelang (city), Brebes, and Banjarnegara, while the rest districts/cities have no coherence between SME’s and government policy. Supply side policy, volume orientation, partial support, and several other factors are the cause of in-coherence. The implication of this finding is that there is a need of evaluation, downstream policy, business link (including education field) that support SME’s will develop.

The impacts on informal financing strategy of small and micro enterprises by interest rate risks and public health emergencies

“…The dependant variables of SME's IFS ( ) are loan amount ( ) and daily interest ( ), according to the results of a literature research and expert interviews. Shohibul et al ( 2019 ) proposed that SME demand evaluation might aid in their growth. Wang et al ( 2019a ) discovered that the volume of informal finance expanded considerably over time.…”

Studi Pendahuluan Komparasi Kapasitas Produksi Pada UKM Batu Bata Berbasis Family Business

“…Perbedaan antara UMKM yang berbaasis keluarga dengan korporasi adalah adanya kemudahan dalam akses bantuan pendanaan terutama pada UMKM yang berlandasakan korporasi (Roida, Sunarjanto dan Jayaprana, 2010). Dilihat dari sifat produknya, UMKM mempunyai produk yang minim bersaing pada suatu lingkungan bisnis dikarenakan tingginya level kompetisi (Shohibul, Sarjiyanto dan Sarwoto, 2019).…”

Constraints to formal small business performance in the service sector in Cameroon

“…Policy efforts have included the development of public credit programs, promoting special purpose vehicles such as development finance institutions, and stimulating private sector financing, which is SME friendly, including microfinance institutions. These efforts have been mainly a response to the ubiquity of information asymmetries and agency problems common in developing country financial markets, including SME information opacity, lack of collateral, lack of managerial skills and transaction costs (Beck, 2013; Shohibul et al ., 2019). Despite this focus, the literature indicates that not much substantial improvement has been made in SME access to finance.…”