scholarly journals Economic Growth, Poverty, Urbanization, and the Small and Medium Enterprises (SMEs) in Indonesia: Analysis of Cointegration and Causality

2021 ◽  
Vol 12 (2) ◽  
pp. 143-150
Author(s):  
Hadi Jauhari ◽  
Periansya Periansya
Keyword(s):  
Economic Growth ◽  
Small And Medium Enterprises ◽  
Secondary Data ◽  
First Year ◽  
Poor People ◽  
Annual Data ◽  
Intense Training ◽  
Medium Enterprises ◽  
The Impact

In Indonesia, poverty is still considered a serious problem, even though the number of poor people continues to decline significantly. The research aimed to investigate whether there was cointegration between the role of Small and Medium Enterprises (SMEs), economic growth, and poverty alleviation or not in Indonesia.  Secondary data were compiled from annual data in 2000-2019. Data analysis applied the cointegration test and Vector Error Correction Model (VECM) test. The results show a one-way causality between poverty and economic growth, urbanization and economic growth, the role of SMEs and economic growth, and the role of SMEs and poverty. In addition, the results of the VECM analysis suggest that the role of SMEs has a positive effect on poverty in the first year. It means that it takes a year to find out the impact of the increasing role of SMEs on poverty at the later stage. The research has several implications for government, namely: (i) compiling work programs that touch the community directly and strengthen the development of local wisdom products, (ii) conducting more intense training, (iii) emphasizing on improving the quality and standards of local wisdom products, and (iv) building rural infrastructure that can facilitate the economic processes in the village.

scholarly journals A Study On The Growth Insights Of MSMEs in the Era Of Globalization

2021 ◽  
Vol 29 (04) ◽  
pp. 18-42
Author(s):  
Chandra Sekhar Patro ◽  
Keyword(s):  
Small And Medium Enterprises ◽  
National Level ◽  
Secondary Data ◽  
Work Conditions ◽  
Firm Level ◽  
Market Opportunities ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Purpose: This paper examines the global scenario of MSMEs, the impact of globalization, the role of MSMEs in India, the growth perspectives of MSMEs during the pre-and post-globalization period, the critical challenges, and the role of the Government in encouraging and developing MSMEs. Methodology:The study considers the secondary data related to the pre-and postglobalization period and analyzes the growth perspectives. In addition, the study examines the critical challenges and also Government initiatives in the development of MSMEs. Findings:The aids of a globalized and digital economy depend to an excessive extent on favourable business environments and healthy competition.The performance of MSMEs depends on accessibility to various strategic resources like abilities, technical know-how, innovativeness, and finance. Thus, it is imperative to consider the factors influencing work conditions firm level, and the strategies formulated at the national level are organized to local business perspectives. Practical Implications:The study will be beneficial to the micro, small and medium enterprises and practitioners who play a pivotal role in the establishment of enterprises and start-ups. It explores the various challenges faced by MSMEs and plan necessary strategies to sustain the competition in local as well as global markets. Originality: The study articulates the MSMEs scenario at the global and Indian levels. It also analyzes the growth insights of MSMEs during the pre-and post-globalization period. It can be observed that MSMEs need to analyze the market opportunities in the rapidly-growing economy and emerging markets.

The Impact of Investment, Consumption, Government Spending and Net Exports on Economic Growth in Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 6-9
Author(s):  
◽  
Ema Sulisnaningrum
Keyword(s):  
Economic Growth ◽  
Informal Sector ◽  
Government Spending ◽  
Small And Medium Enterprises ◽  
Moving Average ◽  
Government Expenditure ◽  
Secondary Data ◽  
Net Exports ◽  
Medium Enterprises ◽  
The Impact

This research studies investment, consumption, government spending, and net exports on economic growth in Indonesia. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We find that consumption, government expenditure, net exports are the backbone of the economy, which shows that the Indonesian economy relies on the informal sector or micro, small and medium enterprises.

scholarly journals Notary Role In Making The Establishment Of The Deed Of Business Cooperation In The Rembang District

Jurnal Akta ◽  
2019 ◽  
Vol 6 (3) ◽  
pp. 573
Author(s):  
Zaenal Arifin ◽  
Aryani Witasari
Keyword(s):  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Literature Study ◽  
Formation Stage ◽  
Cooperative Development ◽  
Preparation Stage ◽  
Cooperative Enterprises ◽  
The Right ◽  
Medium Enterprises

The purpose of this study was to analyze: 1) The implementation of the Deed of Establishment of Cooperative manufacture in Rembang. 2) The role of the Notary as the maker of the Deed of Establishment of Cooperative Enterprises. 3) Barriers and solutions in the Deed of Establishment of Cooperative Development in Rembang.The approach method in this research is juridical empirical, data sources used are primary and secondary data obtained through interviews and literature study, performed data analysis by descriptive analytic.Results of the research results can be concluded: 1) Implementation of Creation Deed of Establishment of Cooperative in Rembang which starts with the preparation stage of formation, preparation stage meetings of formation, stage meetings of formation, stage request for approval rights of legal entities cooperatives, and the stage of issuance of the deed pendiiran and 2) As the role of Notary Deed of establishment of cooperative enterprises in Rembang is as maker deed of cooperative efforts. Notaries have the right authority / legal standing in a deed of incorporation of cooperatives. 3). Obstacles and solutions in the Deed of Establishment of Cooperative Development in Rembang of the cooperative is a member of the cooperative awareness level is still low, less managerial capacity, and limited capital resources. Barriers of Notary Public Notary is still much limited knowledge of Notary Deed Official Cooperation (PPAK) and the low interest of the Notary Deed Cooperative (NPAK) in Rembang district were registered for the Legal Entity Administration System Cooperative (SISMINBHKOP). With the state of a society, then the Office of Industry Trade Cooperatives and Small and Medium Enterprises Rembang should seek to build cooperation between the Notary in Rembang with the Agency's own cooperative.Keywords: Deed of Establishment of Cooperative; PPAK; SISMINBHKOP 

scholarly journals Access to Finance, Financial Development and Firm Performance – Evidence from Pakistan

2020 ◽  
pp. 49-68
Author(s):  
Waqas Ahmad ◽  
Zaheer Abbas ◽  
Zulfiqar Ali Shah
Keyword(s):  
Firm Performance ◽  
Financial Development ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Labour Productivity ◽  
Fixed Effect Model ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact

Purpose- The aim of the study is to investigate the impact of financial constraints on firm performance. The role of financial development in reducing financial constraints is also investigated. Design/methodology/approach- Data from two waves of World Bank Enterprise Surveys from 2007 to 2013 was used to construct the required variables. A balanced sample of 427 firms was selected and a fixed-effect model was used for empirical estimations. Findings- The findings indicate the significance of access to finance in terms of explaining firm performance. Improvement in access to finance led to subsequent improvement in firm performance as measured by labour productivity. The role of financial development in reducing credit constraints is not as expected. The concentration of lending to the private sector in the hands of large corporations at the expense of small and medium enterprises could be the reason for such a result. Originality/value – Most of the work in this area is focused on large listed firms. The present study focused primarily on small and medium-sized enterprises in Pakistan. Multiple measures of financial constraints and firm performance were used for robustness. The investigation also covers the role of financial development and its microeconomic implications at the level of an enterprise.

scholarly journals THE IMPACT AND THE ROLE OF THE SMALL AND MEDIUM ENTERPRISES ON THE EMPLOYMENT IN THE REPUBLIC OF MACEDONIA

2018 ◽  
Vol 28 (1) ◽  
pp. 105-110
Author(s):  
Snezana Bardarova ◽  
Marija Magdincheva-Shopova ◽  
Monika Markovska ◽  
Bozhidar Milenkovski
Keyword(s):  
Economic Growth ◽  
Small And Medium Enterprises ◽  
High Rate ◽  
Small Enterprise ◽  
Small Enterprises ◽  
Republic Of Macedonia ◽  
Area Of Interest ◽  
The Republic ◽  
Medium Enterprises ◽  
The Impact

Current developments in the global and national economics point to a number of problems faced by real entities in the real sector, and as a special area of interest for the scientific public there is a need to provide conditions for the smooth running of the reproduction processes in the enterprise and the realization the positive results of the operation. Enterprises are drivers of inclusive economic growth in the Republic of Macedonia and in creating productive and sustainable jobs.The new conception of the small enterprise as a carrier and engine of economic development is quite persuasive with its economic logic and reaffirms the small enterprise as a significant economic sector. The activities within the small enterprises are aimed at intensifying the results of the work by achieving a balance between objective possibilities and good working principles. The monitoring of the small enterprise, through the prism of its influence on economic growth and development, rejects the traditional view for small enterprises as security guards.The SME sector is a driver of inclusive economic growth in Macedonia and the creation of sustainable jobs increasing productivity. It also does not agree with the notion that small enterprises are economically inefficient organisms.With the third technological revolution in the countries with a developed market economy, the domination of the so-called. small economy, that is, the sector of small and medium enterprises. Today, small enterprises have a growing number of supporters who believe that small enterprises are carriers of innovation and entrepreneurship and are able to react quickly to changes in the environment. For years, the Republic of Macedonia has faced a high rate (29%, June 2013) of general unemployment, which remains a key challenge for stabilizing the economic and social development of the country. The subject of research in this paper is focused on conducting analysis of the active enterprises in the Republic of Macedonia by size, by sector and by number of employees, as well as analysis of the activity of the population and employment by sectors and by type of ownership of the enterprise in the period from 2013-2017.

The Impact of Globalization on Development of MSMEs

2021 ◽  
Vol 2 (1) ◽  
pp. 46-60
Author(s):  
Rama Mohana Rao Katta ◽  
Chandra Sekhar Patro
Keyword(s):  
Small And Medium Enterprises ◽  
National Level ◽  
Work Conditions ◽  
Firm Level ◽  
Market Opportunities ◽  
Growing Economy ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Globalization has been a significant force in the development of the market and economic environments. The micro, small, and medium enterprises (MSMEs) need to focus on technological capabilities to face the competition in the globalized market. They have to analyze the market opportunities in the rapidly growing economy as well as emerging markets. The aids of a globalized and digital economy depends to an excessive extent on favourable business environments and healthy competition. The performance of MSMEs depends on accessibility to various strategic resources like abilities, technical know-how, innovativeness, and finance. Thus, it is imperative to consider the factors influencing work conditions firm level, and the strategies formulated at the national level are organized to local business perspectives. This paper examines the global scenario of MSMEs, the impact of globalization, the role of MSMEs in India, the growth perspectives of MSMEs during the pre-and post-globalization period, the critical challenges, and the role of the government in encouraging and developing MSMEs.

scholarly journals The Role of Small and Medium Enterprises (SMEs) in Employment Generation and Economic Growth: A Study of Marble Industry in Emerging Economy

2019 ◽  
Vol 10 (6) ◽  
pp. 174
Author(s):  
Lara Al-Haddad ◽  
Muhammad Safdar Sial ◽  
Imdad Ali ◽  
Rahmat Alam ◽  
Nguyen Vinh Khuong ◽  
...  
Keyword(s):  
Economic Growth ◽  
Positive Relationship ◽  
Small And Medium Enterprises ◽  
Income Level ◽  
Vital Role ◽  
Employment Opportunities ◽  
Policy Frameworks ◽  
Employment Generation ◽  
Medium Enterprises

This study is undertaken to find out how SMEs contribute to the economy in terms of employment generation and its impact on the economic growth of the country. Small and Medium Scale Enterprises (SMEs) is accepted globally as a tool for empowering the citizenry and economic growth. In Pakistan efforts have been made by successive governments to increase employment opportunities, reduce poverty and accelerate economic growth by increasing foreign direct investment, diversifying the economy, enacting policy frameworks which favor small business ownership and entrepreneurship programs. Specifically, this study tends to figure out: how SMEs contribute to employment generation, whether a significant number of people is employ within the SME sector; whether the SMEs increase the income level of people. The total number of employees was 255 being selected randomly from Swat marble industries. A questionnaire was constructed and distributed to the selected respondents. The responses were collected and analyzed using the Statistical Package for Social Sciences (SPSS) analytical tool. The study exposes that SMEs play a vital role in employment generation. There is a positive relationship between SMEs and unemployment reduction. The result also shows that there is a positive relationship between SMEs and increase in income level. This study may be beneficial both for practitioners and academicians. For practitioners, the current study may help to devise policies and strategies concerning SMEs to generate employment opportunities. The current study may lead to the generalizability of existing research in the same field as for academic aspect is a concern.

Inadequately educated workforce and financing obstacles: international evidence from SMEs in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imad Jabbouri ◽  
Omar Farooq
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Poor Performance ◽  
Capital Requirements ◽  
Informal Credit ◽  
Policy Makers ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

PurposeThis paper aims to document the impact of inadequately educated workforce on the extent of financing obstacles experienced by firms.Design/methodology/approachThe authors use the data provided by the World Bank's Enterprise Surveys to test our arguments. The data were collected during the period between 2008 and 2018 in 141 developing countries. A pooled ordered logit regression analysis is performed to arrive at the results.FindingsThe study’s results show that firms with inadequately educated workforce are more likely to experience financing obstacles than other firms. The authors argue that poor performance and lack of technical expertise required to access finance are some of the reasons behind greater financing obstacles experienced by these firms. The study’s results are robust across different geographic regions. The authors also show that firms with inadequately educated workforce are more likely to seek informal credit for financing their short-term (working capital) and long-term (capital expenditures) capital requirements.Practical implicationsUnderstanding the factors that affect the financing constraints faced by small and medium enterprises (SMEs) should be valuable to managers of SMEs and policy-makers. By removing these constraints, managers can improve their access to financing, and policy-makers can facilitate higher economic growth and better economic conditions.Originality/valuePrior studies have largely been silent on the impact of inadequately educated workforce on the access to finance. This paper draws attention to this issue within the context of SMEs in an international setting. SMEs are the drivers of economic growth in any country. However, their contributions to economic growth cannot materialize without fulfilling their capital needs.

scholarly journals The impact of advisory services on Iranian SME performance: An empirical investigation of the role of professional accountants

2012 ◽  
Vol 43 (2) ◽  
pp. 61-72 ◽  
Author(s):  
Y. Kamyabi ◽  
S. Devi
Keyword(s):  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Theory And Practice ◽  
Competitive Intensity ◽  
Managerial Skills ◽  
Advisory Services ◽  
Job Opportunities ◽  
Medium Enterprises ◽  
The Impact

The role of small and medium enterprises (SMEs) is recognized globally given their contribution to total productivity and job opportunities. However, the majority of SMEs tend to fail due to a lack of marketing knowledge and managerial skills or technical expertise. Professional accountants are in a unique situation to help SME owner/managers to achieve their business objectives and bridge the skills gap. Therefore, this paper aims to identify the factors that affect the decisions of owner/managers of SMEs in Iranian manufacturing sector to utilise the professional accountants’ advisory services and to examine the impact of these advisory services on SME performance using the Resource-Based View (RBV) of the firm. Based on a questionnaire survey data of 658 Iranian manufacturing SMEs, our regression analysis reveals a significant positive relationship between utilisation of professional accountants′ advisory services and three independent variables, namely, knowledge of owner/manager, competitive intensity and complexity of marketing decisions. Furthermore, we evidence that the use of advisory services is significant and positively associated with SME performance. More importantly, utilisation of professional accountants′ advisory services partially mediates the relationship between knowledge of owner/manager, competitive intensity and complexity of marketing decisions and firm performance. Therefore, we provide a specific, theoretically and empirically grounded prediction of how utilisation of professional accountants′ advisory services influences performance with implications for theory and practice.

scholarly journals Effects of foreign direct investment on economic growth in Ghana: the role of institutions

2021 ◽  
Vol 20 (1) ◽  
pp. 23-34
Author(s):  
Evans Kulu ◽  
Samuel Mensah ◽  
Prince Mike Sena
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Secondary Data ◽  
Output Growth ◽  
Data Series ◽  
Development Indicators ◽  
Distributed Lag ◽  
The Impact

The role of institutions in both the inflow and the impact of foreign direct investment is of great im¬portance. The quality of institutions in a country can direct investment towards improving growth. This paper analyzes the individual and combined effect of foreign direct investment and institutions on economic growth in Ghana. The paper used the Auto Regressive Distributed Lag (ARDL) tech¬nique for secondary data obtained from 1995 to 2019. All data series, except for the quality institution index, were drawn from the World Bank Development Indicators. Institutional Quality Index data was obtained from the Heritage Foundation’s Economic Freedom Index website. The results of the ARDL model indicate that foreign direct investment and a quality institutional index together have a significantly positive effect on a country’s economic growth compared to their individual effects in both the short and long run. The study recommends that government policies should be aimed at attracting foreign direct investment while strengthening institutions and regulations to enhance output growth.

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