SMEs Strategies in Managing Corporate Debt Problem and Government Influence towards Indonesian SMEs Development
SME in Indonesia is the backbone of the country, it accounted for 90% of employment and enterprises. Debt and loan has been widely known as the most common financing method for SMEs, to attain business operation needs. However, it is found that SME lacks of strategic planning which causes them to have an unstable growth and slow-moving development. Beside that, government regulation plays an influential role in SMEs growth. This paper identifies and critically analyse the different set of strategies applied by Indonesian SMEs and government roles towards SMEs growth. Using the sample from SMEs that operates in manufacturing, advertising, fashion, construction, and health. The data is obtained through an extended interview, where the result is being translated into thematic coding (qualitative method) analysis in order to derive the data analysis. The result indicates a slight difference between the theoretical framework and empirical framework. In addition, Indonesian SME should adapt to the framework model discussed in this paper, and adjust their strategies necessarily. In the meantime, Indonesian government are required to do an improvement of their program and regulation, essential for SMEs to achieve growth. This paper presents factors and aspects from both internal and external that influence and foster the growth.
Keywords - Small Medium Enterprise (SMEs), Indonesia SME, Growth, Development, Financing, Strategies, Government influence.