ANALYSIS OF EFFECTS OF GOVERNMENT POLICY AND THE INVOLVEMENT OF STAKEHOLDERS ON THE PERFORMANCE OF MSME

Sri Harini

Abstract


The important role of MSME in the national development, particularly in economic growth, employment provision, and GDP is the main reason why MSME should be one of the prioritized attention given by the government and public.  This study was aimed at assessing the effect of government (central and local) policy and the involvement of stakeholders (educational institution, financial institution, cooperative, business association, and NGO) on the performance of MSME.  A quantitative method and analysis of regression and correlation analysis were used.  Results showed that the government has given a special attention to MSME through Law No. 20 Year 2008 and regulations of central and local government through the service office of cooperative and MSME.  Involvement of stakeholders in training, coaching, mentoring, funding, and partnership had an important role in the improvement of MSME performance.  It was expected that the government be able to make or amend laws and regulations which were in favor to MSME and able to create conducive business environment.  Sustainable involvement of stakeholders in the empowerment of MSME was needed by MSME.  


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DOI: https://doi.org/10.24123/jmb.v15i1.4

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