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Category: Business and Industry
Date Submitted: 06/20/2011 04:25 PM
Factors Influencing Small Medium Enterprise (SME) Performances*
Hotniar Siringoringo
Gunadarma University
Research Department, Jl. Margonda Raya No. 100 Depok 16424, JABAR, Indonesia
Tel: +6221+7888 1112 email: hotniars@staff.gunadarma.ac.id
Dharma Tintri Ediraras
Gunadarma University
Accounting Department, Faculty of Economics, Jl. Margonda Raya No. 100 Depok 16424, JABAR, Indonesia
Tel: +6221+7888 1112 email: dharmate@staff.gunadarma.ac.id
Prihandoko
Gunadarma University
Information Technology & Computer Science Department, Jl. Margonda Raya No. 100 Depok 16424, JABAR, Indonesia
Tel: +6221+7888 1112 email: pri@staff.gunadarma.ac.id
Track: Small Business Strategy and Organization
Type of Paper: Research Paper
ABSTRACT
The objective of this research is to get empirical evidence and clarity on the phenomenon of the factors influencing small medium business’ performance.
Business performance can be influenced by envinromental factors, which can be divided into two factors, i.e., external and internal factors. The external factor consists of the macro and industrial environment, whereas internal factor consists of organizational structure, corporate culture, and resources.
The research was conducted by survey on one hundred and eighty five of SME furniture businesses in Jakarta and the cities around Jakarta. Correlation analysis was performed to test the relationship between the strategic planning and performance of SMEs.
The research result shows that there is a weak relationship between the strategic planning and the performance of SMEs, which means that environmental factors do not have a significant impact to the SME performance. This finding makes us suspect that there are other important factors that must have influenced the SME performance, such as entrepreneurship skills, business culture, etc. This will be observed in future research.
Key Words: SME, performance, strategic planning.
INTRODUCTION...