Pilot Study: Determinants of Small and Medium Business Performance

Abstract

Practitioners and academics alike have been focused on the performance of SMEs. However, the factors affecting SME performance are still a hot topic. The goal of this study is to identify the factors that influence SME performance; in the pilot study, these components include knowledge, skills, ability, and government policy. As a result, prototype research was carried out to evaluate the measuring instrument's validity and reliability. The population in the present investigation is the entire small business in Padang City, and the sample size is set at 30 SMEs using a simple random sampling technique. The questions were distributed via Google Forms, which were created based on earlier studies on the same topics utilizing surveys. The study applied validity and reliability to all parameters to verify that participants' replies were consistent. The experts validated the legitimacy of the content and dependability, and the data was analyzed using SPSS version 23. The study's findings revealed that all indicators of knowledge, skills, abilities, and government policies with such measurements are accurate, and data for pilot studies indicate that the data is statistically significant. The concluding part illustrates how this research contributes significantly to the development of SMEs in Padang City. The government can use the findings of this study, SMEs, and academics to improve the performance of SMEs.