The Importance of MSMEs for Poverty Alleviation: A Story from Indonesia
Journal Title: International Journal of Current Science Research and Review - Year 2023, Vol 6, Issue 10
Abstract
Objective: This study examines poverty in Indonesia from an economic approach and discusses the importance of micro, small, and medium enterprises (MSMEs). It focused on the impact of these enterprises on poverty in the country. Methodology: The analysis incorporated an autoregressive model wherein total workers in MSMEs and economic growth rate as explanatory variables. Annual time series data for the period of 2007-2019 has been used. The study also reviews the earlier empirical studies on the relationship between the growth of MSMEs and poverty alleviation in many other countries/regions. It represents the descriptive analysis of the explanatory variables and trends in poverty and MSMEs’ workforce. The poverty-reducing impact of the increase in MSMEs’ workers has been examined. Findings: The result is significant which implies that MSMEs can play a very important role in poverty alleviation in Indonesia. The results of the study imply that a strong MSME base is required for the development of the economy and poverty alleviation in the country. Noverlty: There are many studies regarding MSMEs in Indonesia. However, empirical research regarding the impact of the growth of employment opportunities in MSMEs on poverty levels in Indonesia is still very rare. Therefore, this research fills this gap and at the same time stimulates further research.
Authors and Affiliations
Tulus T. H. Tambunan
Proposed Marketing Strategy for PT Safaat
Indonesia has strong economic growth, driven by a large and growing consumer market, provides significant opportunities for companies in the fuel transportation sector to access a growing middle class and increasing cons...
Validity and Practicality of Learning Tool for Independent Campus Learning (ICL) Study Program Diploma 3 (D3) Mechanical Engineering Bali State Polytechnic (BSP)
The Independent Campus Learning (ICL) Policy is one of the policy studies that the government is currently promoting to be implemented in universities. Implementing this policy in educational programs, Study Program (SP)...
Analysis of the head of Madrasah Leadership Style, Teaching Methods, Teacher Competence, Learning Strategies Towards Student Quality in the Industry 4.0 Era Madrasah Aliyah (MA) Tapin Regency, South Kalimantan
The aim of this research is to analyze and prove the simultaneous and partial influence of the madrasa head’s leadership style, learning methods, teacher competence, learning strategies on student quality in the industri...
Analysis of Digital Transformation on Consumer Behavior for Shopping in Offline and Online Store (Case Study: UNIQLO Indonesia)
Uniqlo is one of the world’s largest Apparel Fashion firms. Uniqlo’s business strategy integrates the entire clothing-making process, from planning and design to production, distribution, and retail. Uniqlo expanded its...
Effects of Climate Change on the Biology and Distribution of Insects
This review summarizes the main effects of climate change on insects described by numerous authors. Among the possible effects, the hight associated temperatures stand out, which influence the dynamics of their populatio...