Environmental influence on business and strategic planning over the small-medium enterprises’ performance: a study on featured product produced by smes in Sidoarjo, Indonesia

The improvement of competitiveness of small enterprises often finds an obstacle as the economics scale and the resources are smaller than the large business. SME has to be able to make a strategic step as a basic of the right decision making process so as being able to survive and have a high competitiveness. SME which now attempts to improve its performance has to pay attention several factors that can give contribution for its success, that is the factor of business environment used as a basic of strategic planning arrangement. The aims of this study are to: 1) examine and analyze if the business environment influences over the performance of SME in Sidoarjo district, 2) Examine and analyze if the strategic planning influences over the performance of SME in Sidoarjo district. Object of study of featured product produced by SME in Sidoarjo included in the area of tourism market is; Jetis batik village in Sidoarjo, home-based shoe and sandal manufacturers in Mojosantren village, Krian sub district, prawn cracker village in Kedungrejo village, Jabon sub district, Small scallop cracker village in Candi sub district, Leather craft industry in Kludan village, Tanggulangin sub district, and smoked fish village in Penatarsewu village, Sedati sub district. The results show that, firstly, environment business does not significantly influence on the performance of featured product produced by SME in Sidoarjo district, secondly strategic planning significantly influence the SME performance in Sidoarjo district.