Characterizing structural problems of SMES during their evolution: Case study of Indonesian SMES

Maya Novita, Ruslan Prijadi, Permata Wulandari, Putri Mega Desiana, Fajar Ayu Pinagara

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

The previous research identifies that small and medium enterprises (SMEs) move through three evolutionary stages in their development: entrepreneurial, business start-up, and on-going (Schutjens & Stam, 2003). This research explores the structural problems (financial, marketing, and human resource) at each stage. The interview results of ten SMEs in the Greater Jakarta area were analyzed using qualitative content analysis. The findings show SMEs in the initial stage face relatively simple problems; however, many suffer failure from inadequate financing. At the start-up stage, SMEs face more complicated problems, primarily in marketing and finance. The SMEs that survive these two stages and move to the on-going business stage have better access to financing, but experience problems common to established firms. Given the importance of SMEs to economies, this research is important for SMEs and also regulators, and those who have concern on job creation and economic growth.

Original languageEnglish
Title of host publicationContemporary Issues on Business, Development and Islamic Economics in Indonesia
PublisherNova Science Publishers, Inc.
Pages187-195
Number of pages9
ISBN (Electronic)9781536168327
ISBN (Print)9781536162783
Publication statusPublished - 1 Jan 2019

Keywords

  • Entrepreneurial stage
  • Evolution
  • On-going stage
  • SMEs
  • Start-up stage
  • Structural problems

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