The Analysis of MSME Empowerment: The Impact of Financing Support and Training on the Output Value of Micro and Small Enterprises in Sumatra Island

Bernadeth Y Priskilla Br Simangunson, Agus Tri Darmawanto, Muhammad Rizky Adrian

Abstract


Micro, Small, and Medium Enterprises (MSMEs) play a vital role in the Indonesian economy. This study aims to examine the influence of financial support and training on the output of MSMEs. The research model employs a dynamic panel model, with the Sys. GMM model. Empirical results show that, in the short term, the MSME credit variable has a significant impact on both micro and small enterprises. The sensitivity to changes in output for micro-enterprises is 0.676%, while for small enterprises, it is 1.788%. Furthermore, short-term results indicate that only the MSME credit variable is significant, but for the output of small enterprises, both MSME credit and training variables show significant effects on their output changes. In the long term, the findings indicate that the output of micro-enterprises is influenced solely by MSME credit, whereas the output of small enterprises is influenced by training.

Keywords: MSME empowerment, ultra-micro financing, MSME credit, training

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