Public Service and Micro-Small Enterprise Developments in Indonesia

Metasari Kartika(1*),

(1) Universitas Tanjungpura
(*) Corresponding Author

Abstract


This study aims to analyze the influence of public service on the Micro-Small Enterprise (MSE) developments in Indonesia. The study method used was regression analysis panel data with fixed effect approach; because of the limited data availability, the data was only taken from 2013-2015. The study findings show that public service and education projected by gross participation data have a positive influence on the development of MSE, while the economic growth and minimum wage policy have a negative influence on the development of MSE in Indonesia. Based on those findings, this study concludes that the public service in the form of government spending allocation policy, especially on the service and economic functions, will stimulate the increase of MSE numbers.


Keywords


public; education; growth; wage; enterprise; business

Full Text:

PDF

References


Adaramola, & Olugbenga, A. (2012). Policy Support and Performance of Small and Medium Scale Enterprises in South-West Nigeria. European Journal of Business and Management, 4(9), 10–19.

Agyapong, D. (2010). Micro, Small and Medium Enterprises ' Activities, Income Level and Poverty Reduction in Ghana – A Synthesis of Related Literature. International Journal of Business and Management, 5(12), 196–205.

Alfirman, L., & Sutriono, E. (2006). Analisis Hubungan Pengeluaran Pemerintah dan Produk Domestik Bruto Dengan Menggunakan Pendekatan Granger Causality dan Vector Autoregression. Jurnal Keuangan Publik, 4(1), 25–66.

Badan Pusat Statistik. (2018). Belanja Pemerintah Pusat Berdasarkan Fungsi. Retrieved from https://www.bps.go.id/statictable/2014/01/13/1310/tabel-anggaran-belanja-pemerintah-pusat-berdasarkan-fungsi-miliar-rupiah-2005-2017.html

Creswell, J. W. (2016). Research Design Pendekatan Metode Kualitatif, Kuantitatif, dan Campuran (Edisi Keem). Yogyakarta: Pustaka Pelajar.

Edoko, T. D., Ngige, C. D., & Okoli, I. M. (2017). Government Antipoverty Programmes and Small and Medium Enterprises Performance in Nigeria. European Scientific Journal, 13(19), 371–394. https://doi.org/10.19044/esj.2017.v13n19p371

Essien, J. M., M-epbari, N., Nwikiabeh, L. B. M., & Piabari, N. (2016). Impact of Government Spending on Small and Medium Scale Businesses in Nigeria. Equatorial Journal of Marketing and Insurance Policy, 1(2), 41–56.

Gujarati, D. N. (2004). Basic Econometrics Fourth Edition. Singapore: McGraw-Hill.

Kementerian Keuangan RI. (2018). Buku II Nota Keuangan Beserta Rancangan Anggaran Pendapatan dan Belanja Negara. Jakarta: Kementerian Keuangan RI. Retrieved from https://www.kemenkeu.go.id/media/10377/nota-keuangan-dan-rapbn-2019.pdf

Kementerian Koperasi dan Usaha Kecil dan Menengah RI. Data UMKM. Retrieved from http://www.depkop.go.id/berita-informasi/data-informasi/data-umkm/

Muhammad, M. Z., Char, A. K., Yasoa, M. R. bin, & Hassan, Z. (2010). Small and Medium Enterprises ( SMEs ) Competing in the Global Business Environment : A Case of Malaysia. International Business Research, 3(1), 66–75.

Nicholas, C., & Fruhmann, M. (2014). Small and Medium-sized Enterprises Policies in Public Procurement : Time for a rethink? Journal of Public Procurement, 14(3), 328–360. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216

Nichter, S., & Goldmark, L. (2009). Small Firm Growth in Developing Countries. World Development, 37(9), 1453–1464.

Ntiamoah, E. B., Li, D., & Kwamega, M. (2016). Impact of Government and Other Institutions’ Support on Performance of Small and Medium Enterprises in the Agribusiness Sector in Ghana. American Journal of Industrial and Business Management, 3(6), 558–567. https://doi.org/10.4236/ajibm.2016.65052

Sek-Choo, T., Tolos, H., & Manab, N. A. (2016). Employee Benefits in Small Medium Enterprises (SMEs): Practice and Challenges. SSRN Electronic Journal, (August), 56–65.

Tambunan, T. (2008a). SME development, economic growth, and government intervention in a developing country : The Indonesian story. Journal of International Entrepreneurship, 6(4), 147–167. https://doi.org/10.1007/s10843-008-0025-7

Tambunan, T. (2008b). SMEs Development in Indonesia: Do Economic Growth and Government Support Matter. IJAPS, 4(2), 111–133.

Vial, V. (2011). Micro-Entrepreneurship In A Hostile Environment : Evidence From Indonesia. Bulletin of Indonesian Economic Studies, 47(2), 233–262. https://doi.org/10.1080/00074918.2011.585952

Wahyudi, S. T. (2016). Konsep dan Penerapan Ekonometrika Menggunakan E-views. Jakarta: PT RajaGrafindo Persada.

Yean, U. L., Ling, T. P., Yoke, C. C., Jayabalan, J., Fong, P. W., & Kandasamy, S. (2016). The Impact of Minimum Wage Policy on Small Medium Enterprises ’ Productivity in the Manufacturing Sector. Journal of Business and Economics Review, 1(1), 78–83.

Yuk, W. (2005). Government Size And Economic Growth: Time-Series Evidence For The United Kingdom, 1830-1993. In Econometrics Working Paper. Department of the Economics University of Victoria.




DOI: http://dx.doi.org/10.33019/ijbe.v3i1.103

Article Metrics

Abstract view : 1141 times
PDF - 720 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License

Integrated Journal of Business and Economics is licensed under a Creative Commons Attribution 4.0 International License.