Small And Medium Enterprises (SMES) Performance In Aceh Jaya, Indonesia

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Date
2018-04
Authors
Oriza, Rahmat
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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.
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Keywords
Small and medium enterprises , performance in Aceh Jaya, Indonesia
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