Development of Indonesian Micro, Small and Medium Enterprises and The Utilization of the Internet | Chapter 02 | Emerging Issues and Development in Economics and Trade Vol. 1
In the current era of globalization,
small businesses are required to be able to compete in the market. One way for
them to be able to compete is to utilize information technology in the form of
Internet media. This study aims to examine recent development of micro, small,
and medium enterprises (MSMEs) and to explore the use of the Internet by micro
and small enterprises (MSEs) in Indonesia. For this purpose, it analyzed
secondary data and primary data collected from face-to-face interviews with
randomly selected 482 owners of MSEs in various cities and types of business.
The secondary data analysis shows that MSMEs in Indonesia are dominated by
MSEs, i.e. accounted for almost 100 per cent of all firms, but only contributed
between 58 to 61 per cent of gross domestic product (GDP). Only a small
fraction of MSEs in the country utilize the Internet for their businesses,
although it varies by province and type of business. From the primary data
analysis, it reveals three interesting findings, namely: (i) manufacturing
industry is the type of business with the most Internet usage; (ii) young
respondents use the Internet more than older respondents; and (iii) higher
educated respondents are more likely to use Internet in running their
businesses than low educated respondents.
Author(s) Details
Mr. Tulus Tambunan
Center for Industry, SME
& Business Competition Studies,University of Trisakti, Jakarta, Indonesia.
Ida Busnetti
Center for Industry, SME
& Business Competition Studies, University of Trisakti, Jakarta, Indonesia.
View Volume: https://doi.org/10.9734/bpi/eidet/v1
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