Study on Determinant Factors of Micro and Small Enterprises Development in South Sulawesi of Indonesia

Abstract

The purposes of this study is to examine factors determinants of development of micro and small enterprises in South Sulawesi, Indonesia. This research was conducted in two regions namely, Makassar and Gowa. Total respondents are 150 people, and 10 people as key informants. Data is analyzed by using Descriptive Statistic, Structural Equation Modeling, and Analytical Hierarchy Process (AHP). The results show that the development of micro and small businesses should consider the internal aspects namely human resources, finance, production, and marketing. Then, the external aspects namely government policies, socio-economic and cultural, the role of related institutions, and information technology. Development strategy is more focused on internal capacity improvement than external. Furthermore, the other factors that determine the performance of Micro and Small business are capital, training, market information, marketing network, promotional of products, and institutional capacity.

DOI: 10.5901/mjss.2016.v7n6p121