Sustainability of Small and Medium Enterprises (SMEs) in Indonesia: A Framework of Analysis

Adnan, Indra Muchlis (2016) Sustainability of Small and Medium Enterprises (SMEs) in Indonesia: A Framework of Analysis. Journal of Governance and Development, 12 (1). pp. 1-10. ISSN 2289-2311

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Abstract

There is a lack of comprehensive literature on the sustainability of SMEs in Indonesia. This paper, therefore, aims at filling in this gap by analyzing barriers towards sustainability of Indonesian SMEs. Spurred by a regional economic integration, the growth of Indonesian economy depends largely in part on the success of SMEs development. However, lack of government intervention causes widespread concerns among small and medium business owners which, in turn, affect their ability to compete fairly in an open market economy. Based on this framework, the paper attempts to highlight areas of concern that inhibit the ability of SMEs to be competitive in a globalized world. The paper then recommends several strategies that need to be implemented by the government in order to address the internal and external factors affecting the competitive sustainable advantage of SMEs in Indonesia.

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