The Labor Force Absorption Improvement of Micro and Small Enterprises (MSEs) in Indonesia

Jannah, Eka Miftakhul; Rachmadhan, Aditya Arief; Meidaliyantisyah, Meidaliyantisyah; Hendra, Jekvy

doi:10.17977/um002v13i12021p072

Cited by 1 publication

(1 citation statement)

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“…Support for MSMEs is very important, especially in the quality of human resources and the quality of product performance since those can improve business competitiveness (Jaya et al, 2020). Besides, the partnership with digital marketing from various e-commerce platforms and online courier services should be massively initiated to increase the SMEs' income (Jannah et al, 2021). In terms of macroeconomy, export must be encouraged considering the improvement of MSMEs exported products could boost their actors to increase productivity.…”

Section: Resultsmentioning

confidence: 99%

Tourism Villages for Micro and Small Enterprises Labor Absorption

Sugiharti,

Panjawa,

Pamela

et al. 2023

JEP

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Micro, Small, and Medium Enterprises (MSMEs) are the most important pillars of Indonesia’s economy. It has considerable contribution in providing employment in the informal sector. However, the high absorption of labor accompanied by the increased number in MSMEs in Indonesia cannot be separated from the existing challenges. This study aims to analyze the determinants of employment in the Micro and Small Enterprises sector (MSEs). MSEs actors in the tourism village area, Patuk sub-district, Gunungkidul, Yogyakarta. This research is focused on the role of the type of business and the status of the tourism village. The analytical tool used is the robust ordinary Least Square (OLS) method. The results showed that turnover and length of business had a real impact on increasing the absorption of MSEs workers according to the type of business and the status of the tourism village. Other findings show that Micro and Small handicraft businesses showed the highest employment absorption in tourism village with developed status, followed by businesses in the service, processed food, and trade sectors. The same results are also shown in the status of developing tourist villages. The potential of tourist villages with the advantages of the business sector has a real impact on increasing employment. Therefore, policymakers need to formulate strategies for the development of tourist villages to improve the welfare of local communities.

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Section: Resultsmentioning

confidence: 99%