Small And Medium Enterprises (SMES) Performance In Aceh Jaya, Indonesia
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Date
2018-04
Authors
Oriza, Rahmat
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
SMEs in Aceh Jaya plays prominent role in the development of local
economy with regard to income generation, poverty eradication, and employment
opportunities. But at present, SMEs are facing vast competition within the local
markets and unfavorable government policy towards SMEs growth. As such SMEs
performance are essential to determine the livelihood of SMEs. Hence, this study
aims to measure the performance of SMEs in Aceh Jaya, assess owners and business
characteristics in influencing SMEs performance and measure structural relationship
of variables on SMEs performance. 260 SMEs owners were involved in the study
survey. Survival Index Value (SIV) prescribed by Abouzeedan and Busler (2004)
was the main measurement of SMEs in Aceh Jaya. It was found that 84.23(%) of
SMEs in Aceh Jaya reported good performance, 12.31(%) reported moderate
performance and 3.46(%) reported poor performance. Ordered logit analysis
indicated that gender, skills, the technology used and type of assistance significantly
influence SMEs performance. The SEM analysis indicated that technology used
significantly influence SMEs performance through the business field. The study
recommends to the Government of Aceh Jaya in order to enhance and diversify the
types of assistance to SMEs so that they can compete in the local market. For help in
terms of technology used, the Government should take into account the business
undertaken by SMEs.
Description
Keywords
Small and medium enterprises , performance in Aceh Jaya, Indonesia