MSMEs play a key role in the global economy. An estimated 455 million MSMEs worldwide contribute significantly to GDP and employment. In developing countries, MSMEs account for over 60% of GDP and 70% of employment on average. At the national level in Indonesia, MSMEs have increased economic growth and stability by creating jobs, contributing over 50% to GDP. At the local and regional levels, they dominate industry and provide basic goods and services. MSMEs impact economies at all levels through job creation, innovation, tax revenues, and trade. Their widespread nature allows for inclusive development across communities.
Research report impact of multiple taxationJawad Ahmed
Small and medium scale refer as wholesaler and retailers. The study is for finding that taxation may impact or not on these scales. Statement of hypothesis is also stated in this at 2.1 you can see.
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
This paper argues that SMEs are indeed engine of growth in most economies of the world, including Nigeria and goes further to propose strategies for propelling the sector for stellar and optimal performance
Growth of Micro, Small and Medium Enterprises in Manipurinventionjournals
Economic development and industrial development is considered as synonym and entrepreneurs play a major role in industrial development. Micro, Small and Medium Enterprises (MSMEs) extend to the necessary support and compliment to the beneficial effects of industrialization. Entrepreneurship is an important segment of economic growth and micro, small and medium enterprises play a key role in the industrialization of a state. It will also leads to economic development creating vast employment opportunities, redistribution of economic power and income, raising the standard of living for the people and also leads to reduction of regional imbalances, disparities in income, wealth and consumption etc. Manipur has got many areas of strength and opportunities that can raise the state into a developed state with the help of entrepreneurship and micro, small and medium enterprises are an important segment of the economy contributing substantially in the form of production, employment and exports. Numbers of registered industrial units fluctuates each year and this paper attempt to study the level of growth of these enterprises in the state. This paper also attempts to highlight the strength and weaknesses with the overview growth of micro, small and medium enterprises in Manipur.
The Role of Governments as Relationship Mediation Between Social Capital and ...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Impact of Globalization on MSME Prospects, Challenges and Policy Implementati...ijtsrd
Globalisation is bound to impact every economic activity -the small scale sector is no exception. Along with that World Trade Organisation W.T.O agreements and negotiations have thrown up a variety of challenges. The disturbing factor is that most of the small units are unaware of these agreements and negotiations and have no idea as to how they are going to affect them. With a view to build the capacity of the Indian micro, small and medium manufacturing enterprises for overcoming competition in the global markets and facing challenges being posed by the entry of the multi nationals in the domestic markets Government of India GoI has taken various policy measures. The current paper focuses on the contribution of MSMEs, prospects and problems for MSMEs in this highly competitive global era. Micro, Small and Medium Enterprises MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural and backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth, the process of globalization is an inevitable phenomenon in human history which has been bringing the world closer since the time of early trader and exploration through the exchange of goods, products, information, jobs, knowledge and culture. S. Chandra Sekhar | N. Radha "Impact of Globalization on MSME: Prospects, Challenges and Policy Implementation on Economic Growth" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29168.pdf Paper URL: https://www.ijtsrd.com/management/business-administration/29168/impact-of-globalization-on-msme-prospects-challenges-and-policy-implementation-on-economic-growth/s-chandra-sekhar
Microfinance Banking and Development of Small Business in Emerging Economy: N...iosrjce
The research study examines the Microfinance Banking and Development of Small Business in
emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which
economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and
development of the informal sector and remains heralded strategy for industrial development in emerging
economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A
simple regression was used to address the responses of the respondents gathered though the questionnaire in
order to derive logical conclusion for the study. It was however established that MFBs have the capacity to
boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked
and to be focused on the objectives for which they were established. Also, the reviewing and refining of the
National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The
paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory
agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services
required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage in economic activities and be
more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Research report impact of multiple taxationJawad Ahmed
Small and medium scale refer as wholesaler and retailers. The study is for finding that taxation may impact or not on these scales. Statement of hypothesis is also stated in this at 2.1 you can see.
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
This paper argues that SMEs are indeed engine of growth in most economies of the world, including Nigeria and goes further to propose strategies for propelling the sector for stellar and optimal performance
Growth of Micro, Small and Medium Enterprises in Manipurinventionjournals
Economic development and industrial development is considered as synonym and entrepreneurs play a major role in industrial development. Micro, Small and Medium Enterprises (MSMEs) extend to the necessary support and compliment to the beneficial effects of industrialization. Entrepreneurship is an important segment of economic growth and micro, small and medium enterprises play a key role in the industrialization of a state. It will also leads to economic development creating vast employment opportunities, redistribution of economic power and income, raising the standard of living for the people and also leads to reduction of regional imbalances, disparities in income, wealth and consumption etc. Manipur has got many areas of strength and opportunities that can raise the state into a developed state with the help of entrepreneurship and micro, small and medium enterprises are an important segment of the economy contributing substantially in the form of production, employment and exports. Numbers of registered industrial units fluctuates each year and this paper attempt to study the level of growth of these enterprises in the state. This paper also attempts to highlight the strength and weaknesses with the overview growth of micro, small and medium enterprises in Manipur.
The Role of Governments as Relationship Mediation Between Social Capital and ...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Impact of Globalization on MSME Prospects, Challenges and Policy Implementati...ijtsrd
Globalisation is bound to impact every economic activity -the small scale sector is no exception. Along with that World Trade Organisation W.T.O agreements and negotiations have thrown up a variety of challenges. The disturbing factor is that most of the small units are unaware of these agreements and negotiations and have no idea as to how they are going to affect them. With a view to build the capacity of the Indian micro, small and medium manufacturing enterprises for overcoming competition in the global markets and facing challenges being posed by the entry of the multi nationals in the domestic markets Government of India GoI has taken various policy measures. The current paper focuses on the contribution of MSMEs, prospects and problems for MSMEs in this highly competitive global era. Micro, Small and Medium Enterprises MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural and backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth, the process of globalization is an inevitable phenomenon in human history which has been bringing the world closer since the time of early trader and exploration through the exchange of goods, products, information, jobs, knowledge and culture. S. Chandra Sekhar | N. Radha "Impact of Globalization on MSME: Prospects, Challenges and Policy Implementation on Economic Growth" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29168.pdf Paper URL: https://www.ijtsrd.com/management/business-administration/29168/impact-of-globalization-on-msme-prospects-challenges-and-policy-implementation-on-economic-growth/s-chandra-sekhar
Microfinance Banking and Development of Small Business in Emerging Economy: N...iosrjce
The research study examines the Microfinance Banking and Development of Small Business in
emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which
economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and
development of the informal sector and remains heralded strategy for industrial development in emerging
economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A
simple regression was used to address the responses of the respondents gathered though the questionnaire in
order to derive logical conclusion for the study. It was however established that MFBs have the capacity to
boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked
and to be focused on the objectives for which they were established. Also, the reviewing and refining of the
National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The
paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory
agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services
required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage in economic activities and be
more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
The Importance of Entrepreneurship and Information Technology for SMEs Strate...ijtsrd
The policy of developing the economic model of a country aims to stimulate all economic sectors to advance and develop into strengths on a regional and national scale. Micro, small and medium enterprises SMEs have become one of the most effective engines in developing economic market patterns in almost all countries and regions of the world. SMEs that contribute to this economic sector are the largest contributors to the pattern of advanced economies that drive competitive economic growth. SMEs actors have become the driving force of the economy and this must be recognized by the State in terms of their participation. The significant role of SMEs in the economies of world countries is very crucial in reviving and stabilizing and nourishing the global economy where their role will be seen in the conditions that SMEs fail or succeed in their journey. Basically, SMEs have little in having the driving capital of their business to develop and generally do not have much technical capability which causes them to be low in all circumstances and lack of access to develop capital for their future investment. In addition, the development of SMEs has become an important mechanism of how to develop economic growth, create jobs, and alleviate poverty from economic types. This article specifically discusses small scale entrepreneurshiphip and increases the use of information technology in the mission of supporting performance and competitive advantage. small business actors. The main purpose of this article is how to contribute positive thoughts to entrepreneurship or entrepreneurship in the use of entrepreneurial orientation, information technology in building strategic planning to support business performance and towards competitive advantage for entrepreneurship, especially SMEs. Lena Ellitan "The Importance of Entrepreneurship and Information Technology for SMEs Strategic Planning" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42479.pdf Paper URL: https://www.ijtsrd.commanagement/new-venture-startup/42479/the-importance-of-entrepreneurship-and-information-technology-for-smes-strategic-planning/lena-ellitan
The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities. With around 48.8 million units throughout the geographical expanse of the country, MSMEs contribute around 7% of the manufacturing GDP and 31% of the GDP from service activities as well as 37% of India s manufacturing output and 40% of the overall exports.
Local Government Grants And Sme Performance, Evidence From Surakarta City, In...inventionjournals
This study analyzes effects of government direct spending to Small and Medium Entreprises (SME). Some scholars and policy makers belief that government should issues several industrial policies to strengthen SME performance. This study analyzes those policies in Surakarta city. In this study, we assess the effect of local government direct spending to SME such as, capital grants and low rate loan to their business performance. We conduct survey which involved 500 SME in manufacturing. Our resuls shows that capital grants and loan policy by local government in Surakarta has positive effect to SME assets, capital and turnover. This study shows that capital grant is more effective compare to other government assistance such as equipment grants and loan to increase SME’s business performance. In this study, industrial policy for SME is not limited to business regulation but it also include direct assistance from local government for these business organizations.
The Relevance of Working Capital, Financial Literacy and Financial Inclusion ...AJHSSR Journal
ABSTRACT : The development of the number of micro and small business actors in Indonesia is very fast,
but currently Micro, Small and Medium-Sized Enterprises are still in the small business zone and have
limitations to be developed. This research is oriented towards examining the relevance of working capital,
literacy and financial inclusion in explaining the financial performance and business sustainability of Micro,
Small and Medium-Sized Enterprises. A total of 310 MSMEs spread across 26 business groups were used as
the unit of analysis of the 1,382 MSMEs in Makassar City. The results of the analysis of structural equation
modeling with AMOS show that effective and efficient working capital management makes a real contribution
to efforts to improve financial performance. On the other hand, it is an interesting fact that business actors'
financial literacy and inclusion have an impact on their low financial performance. Culinary business actors in
their implementation have high working capital so that it has an impact on the high level of business
sustainability. In a direct relationship, it is also found that business actors have financial literacy so that it is not
able to increase business sustainability. This condition is also found in financial inclusion. MSMEs are proven
to be able to produce high financial performance so that it has an impact on a high level of business
sustainability. Relevance does not directly provide evidence if high working capital is proven as a trigger for
business sustainability through financial performance. Different results are shown in the relevance of financial
literacy and financial inclusion which based on the findings are not proven as a driver of business sustainability
through financial performance.
KEYWORDS - Financial literacy, inclusion, performance, sustainability, working capital
Micro Small and Medium Enterprise Funding - Opportunities and ChallengesResurgent India
What are MSMEs, Why are they Important, What is their role in the Economy and What are the Opportunities and Challenges related to Funding in the Sector? This Research Report from Resurgent India highlights the Opportunities and Challenges along with Suggestions for MSME Funding.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Entrepreneurship and its Impact on Business Performance Improvement and Pover...inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Empowering MSMEs through financing and linkagesMisbah Hussain
This reports aims to help the MSME sector, especially in
east and north-eastern parts of the country, better
understand the challenges and devise strategies accordinglyto deal with the odds.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. Analysis on Micro, Small, and Medium
Enterprise (MSME) impacting the economy
Micro, Small, and Medium Enterprises are currently the most popular enterprise for entrepreneurs in every
country, developed or undeveloped. MSME is basically called the “backbone” of the economy in each
countries. MSMEs are said to be helping economies based on increasing employments, sustainable growth,
increase of trade and the earnings of export, and lastly, it helps develop entrepreneurship skills to many people
in the society (Singh and Venkata, 2017).
Most of these businesses start as a small company, and if they are capable of earning better profit, then they
would automatically move up as a medium sized company. As most of MSMEs are committed to
socio-economic goals, their main objectives are too earn profit, innovation, and to help their surroundings.
Generally, these helps would include recruiting unemployed workers, and help provide to people under the
poverty line (Singh and Venkata, 2017).
3. Region Number of MSMEs (In Millions)
East Asia 185
South Asia 80
Sub-Saharan Africa 40
Latin America 50
Central Asia and Eastern Europe 20
Middle East and North Africa 20
High Income OECD 60
Total 455
Table 2: Region-wise estimated
breakup of micro, small and medium
enterprise (Singh and Venkata, 2017)
4. According to IFC, there are an estimate of 455 million MSMEs in the world, of which 80% belong in emerging
markets, and about 70% of them that are based of micro enterprises, as shown in Table 2 above (Singh and
Venkata, Quoted by IFC, 2010).
It could also be shown on Table 2 that the number of MSME businesses in High Income OECD is not very high.
This is because in high income OECD countries, MSME businesses has a hard time in gaining access to public
procurements, whereas public procurement is important for MSME as it is the source of direct income for
companies. Another problem faced by MSMEs in high income OECD countries is that the countries are already
developed, which means that the large firms holds a huge power in innovation and workforce skills, making
MSME businesses not have enough resources to catch up with the large firms (OECD, 2017).
5. According to Singh and Venkata (2017), MSMEs have played a huge role in the local and international
economy, contributing 55% of GDP and 65% total employment in high income countries, 70% GDP and 95%
total employment in the middle income countries, and over 60% GDP and 70% total employment in low income
countries.
Moreover, the impact of MSMEs in the local and domestic economy could be said that it is to increase the
growth of GDP in the country, contribute to society by the creation of jobs and employment, and increasing the
government revenues through their payment of taxes and duties.
6. Comparison of impacts to economy by
MSME and Large Business
The comparison of impacts to economy by MSME and Large business could be said that MSME holds control
of 455 million businesses in the world as of 2017, way more than large businesses. It could be said that MSME
has a better opportunity in contributing to its society by creating more jobs to people around them (Singh and
Venkata, 2017).
Another one could be that MSME businesses has an objective of innovation, so it means that many MSMEs
would have more innovations than large businesses, which concludes that it would need a large amount of
workforce in order to create the output of the innovation, unlike in large business, it would take them years to
create a new innovation as they would have to make sure that the risks are not high, as it would be a big step for
the large company (Deeb, 2014).
7. How MSME and Large Business
could impact different levels of the
economy in Local, Regional,
National, and International Context
8. Impact of UMKM (MSME) and Large
Business in Indonesia (National)
As stated by Tambunan (2011), the presence of many micro and small businesses in Indonesia just shows that a
large number of people in Indonesia is unemployed and/or has poverty problems as these businesses are
established by people living in a poor household. However, the government has taken notice about the number
of small businesses being established, which makes them create a new constitution of “UU No. 20 Tahun 2008”
about UMKM to help them get paid attention to, and that they could ask for funding from banks.
Therefore, the impact of Usaha Mikro, Kecil, dan Menengah (UMKM) in Indonesia is that it helps create jobs
for the society, which means that unemployed and unqualified people could have a job that produces money,
leading them to go above the poverty line. UMKM also helps Indonesia increase economic growth and national
stability in the economy (Indonesia B, 2015, p.27).
9. 2010 2011 2012 2013
Total MSME
(UMKM) in
Indonesia
(Units)
53,823,732 55,206,444 56,534,592 57,895,721
Growth of
UMKM in
Indonesia
(Percentage)
2,01 2,57 2,41 2,41
Total UMKM
Workforce in
Indonesia
(Units)
99,401,775 101,722,458 107,657,509 114,144,082
Workforce in
Indonesia
(Percentage)
3,32 2,33 5,83 6,03
Total Large
Business in
Indonesia
23,345 23,370 23,592 23,698
Total Large
Business
Workforce in
Indonesia
(Units)
4,501,145 4,629,369 4,928,839 5,004,912
Table 3.1: Growth of
UMKM and large
business in Indonesia
as of 2010-2013 (Bps,
n.d.)
10. As Indonesia is considered a developing country, UMKM businesses has created a huge impact in employment
of Indonesia. As of 2013, Badan Pusat Statistik (BPS) has stated that UMKM has contributed 6,03% of growth
in employment, and has contributed a total of 57,895,721 units of UMKM businesses being held in Indonesia
(Badan Pusat Statistik, 2016). The table also shows the consistent growing of UMKM businesses in Indonesia
as of 2010-2013 which is from 2,01%, to 2,57% in the next year, and then 2.41% in 2013, while the workforce
has been constantly growing from 3,32% in 2010, to 6,03% in 2013. This shows that the growth of UMKM has
helped the people of Indonesia to have jobs and stay above the poverty line (Badan Pusat Statistik, 2016).
UMKM businesses in Indonesia has also contributed a number of positive that are underestimated. One of them
being that UMKM is spread everywhere across Indonesia, which helps in providing basic needs to the
community, and also the increased number of uses of local raw materials and resources which leads to saving
the foreign exchange of Indonesia from becoming unstable (Indonesia B, 2015, p.30). Some UMKM businesses
are already advanced enough that their market share is no longer national, but international. The data from
Kementerian Koperasi in 2017 shows that the number of foreign exchange players are mostly from UMKM
businesses, reaching up to Rp.88,000,000,000 (Billion). This shows that UMKM businesses has helped
providing income of Indonesia in the form of foreign exchange (Dwi, 2017).
11. Local
As in Jakarta, UMKM have impacted the economy by dominating 93,46% of the market, with 1,14 million units
of businesses generating in more than 15 categories of business. This means that UMKM business have
impacted more to the economy in Jakarta than large businesses in Jakarta which only covers up about 6,5% of
the market. It is seen from the data that Jakarta Barat covers up the most MSME business with a total of 26%,
containing 322,049 units of businesses in Jakarta, while Jakarta timur cover up 21% and Jakarta Selatan with
20%. Most of these businesses are either trading businesses, or processing industries, except in Kepulauan
Seribu, where most of the small businesses are based on accomodation and food & beverage businesses (Koran
Jakarta, 2018). MSME businesses who conduct a trading business in Jakarta are usually in a form of street
vendors who do not have enough capital to expand their business, which means that the small businesses would
need new innovations in order to help expand their business to a larger size.
12. Regional
UMKM (MSME) has also impacted the economy in the region of Jawa Timur, dominating 99,85%, having
6,825,931 units of businesses as of 2013, increasing by over 2 million than the year before, leaving only 0,15%
of large businesses. From the 99,85% of UMKM, 85,09% are in the form of Micro business, 14,19% of Small
business, and 0,57% of medium business. UMKM also contributes to 98% of workforce in Jawa Timur. UMKM
businesses has impacted the economy of not only Jawa Timur, but also nationally as it is said to be the second
highest economic contribution after Jakarta. In Jawa Timur, most of the UMKM business are formed by the
agriculture sector, controlling 60% of UMKM, followed by other businesses with 39,75%, having more than
11,117,439 workforce combined. To conclude, Jawa Timur has improved their economy growth by 6,55% in
2013 by the help of UMKM businesses (Istifadah, 2015). As most of MSMEs in Jawa Timur is controlled by
agriculture sectors (Istifadah, 2015), it might not be a great idea for the agricultural businesses to turn into a
large business as there would be many competitors competing with the price of their products, which might not
be good for the large business as it would not be able to decrease the price of their products as low as the
smaller businesses.
13. International
MSME businesses have impacted many levels of economy internationally, as it is said to have helped the
economy not only by increasing employment rates, but it has also contributed to the growth of a country’s gross
domestic product (GDP) based on increased outputs and profits made. MSMEs have also helped governments
increase their revenues by the large amount of MSME businesses paying taxes and duties.
Table 3.2: MSME Growth rate by
income group from 2000-2009 (Kushnir,
Mirmulstein, and Ramalho, 2010)
14. As seen in table 3.2 above, it shows that the growth of MSME businesses have been affecting more
lower-middle income group people than any other. The high income group shows a less growth rate as most of
them are based on higher base, as the lower-middle income groups tend to innovate and grow faster than higher
income groups, who believes in “higher income - slower growth rate” (Kushnir, Mirmulstein, and Ramalho,
2010).
It is also shown in the table that MSME businesses has created an impact by contributing in job creations and
economic development mainly for the lower-middle, low, and upper- middle income groups, and also holds
33% of employment in developing countries.
15. Table 3.3: MSME contribution to GDP
(Kushnir, Mirmulstein, and Ramalho, 2010)
16. In table 3.3, it shows the contributions MSME businesses have impacted to GDP contribution in each regions. It
also shows that East Asia has been the most impacted by it, which is mostly from China, with MSME
contributing 80% of the total employment (Kushnir, Mirmulstein, and Ramalho, 2010).
The tables 3.2 and 3.3 has showed us that the growth of MSME has impacted the economic development and
job creation globally, measured through their regions. It shows that MSME has benefited the society by
contributing as a social economy through job creation for low-middle class people, and also contributing the
growth of GDP by the goods or services provided, and government revenues in boosting taxes and duties.
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