The Influence Of Small Micro Industries On Economic Growth

Abstract

The purpose of this study to determine whether SMEs have a role to economic growth and how big the role of SMEs to economic growth in Indonesia. Types of data used are time series data i.e SMEs data and Economic growth data from year 2003 until 2018 in Indonesia.Tool of analyze data used in this research is multiple linear regression. The result of analysis shows that the influence between of SMEs on economic growth in Indonesia is only 12,5%, it means that Small Micro Entreprises do not have a significant influence on economic growth in Indonesia, government to accelerate the development of SMEs in Indonesia in order to contribute to economic growth as in the economic crisis that occurred in 1998 SMEs are able to survive when many large companies are bankrupt. This may be caused by SMEs owners and workers in SMEs do not pay taxes to the government so that not much contribute to the economic growth of the Indonesia. In order for SMEs to contribute to economic growth, must export their products to other countries and support from the government is needed to facilitate SMEs in obtaining capital access from financial institutions.

Business Competition in the Era of Technology: Shifting the 4P to 4C

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Spatial Patterns, Opportunities and Determinants of MSMEs Employment in Township

“…The role of MSMEs are considered as important since half of population of productive residents who work in the informal sector are the peoples who work in MSMEs (Ilegbinosa & Jumbo, 2015). It is expected, the increase of MSMEs productivity could lead to economic growth, through; 1) new job opportunity, 2) the reduction of gap in per capita income, and 3) the increase of the goods and service output, produced by the community (Beisengaliyev et al, 2018;Rohadin & Yanah, 2019). The productive residents could become a group that potentially moves the people's economy.…”

“…Aside of having strategic role towards economic development opportunity, in developing countries, MSMEs tends to be more appropriate to become community's economic mover. According Rohadin & Yanah (2019) on the research about the influence of small and medium industries towards economic development, suggested that MSMEs has more resilience towards economic crisis if compared to big industries. In line with previous research, Rusdarti & Kistanti (2018) in their research, indicated that MSMEs has better preparation towards global market competitions.…”

The Influence of Customer Trust and Value on Customer Loyalty Small and Medium Business (Smes) PT Bank Rakyat Indonesia Branch Office Cilegon

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“…Micro, Small, and Medium Enterprises (MSMEs) are an interesting study material in the Indonesian economy. MSMEs have been proven to be one of the business sectors as the backbone of the national economy in the community because this sector has flexibility and resilience in dealing with economic crises (Rohadin & Yanah, 2019). MSMEs show an important role in the Indonesian economy because they make a major contribution in supporting national income and Gross Domestic Product (Kristiningrum et al, 2021).…”