MSMEs Empowerment and Development Strategy Model

Habiburahman, Iskandar Ali Alam, Hendri Dunan and Haninun

MSMEs in the Indonesian Economy play a role as a stimulus for economic dynamics with a role that can reduce unemployment, alleviate poverty and provide foreign exchange for the State. It is also the largest group of economic actors in the Indonesian economy and has the largest contribution to development. MSMEs are able to survive the crisis and are able to become economic dynamics after the crisis. The fact that there are still many MSMEs that have not been able to develop optimally so they have not been able to provide greater benefits in the economy. This study aims to find and analyze the determinants of MSME development and the Empowerment Strategy Model in MSME development. Data obtained by field surveys, questionnaires, interviews, and documentation of 100 SMEs using the Ordinary Least Squares Regression analysis tool. In the research, it was found that the MSME Development Strategy Model with determinants namely Management, Finance, Marketing, Access to Information, Business Planning, Legality, Infrastructure, Supporting Institutions, Local Government, and Competition. There are also 4 dominant factors that determine the development of MSMEs that can be used as a guideline for the government in promoting MSMEs, namely the Internal Factor consisting of Business Planning Factors, Access to Information, Finance, and External variables, namely the Role of Regional Governments.

Volume 11 | Issue 12

Pages: 34-39

DOI: 10.5373/JARDCS/V11I12/20193209