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Presidential Election and SME Transformation in Indonesia: The Influence of Policies and Political Dynamics

Author

Listed:
  • Ninik SRIJANI

    (Universitas PGRI Madiun, Indonesia)

  • Siti AISYAH

    (STKIP PGRI Lumajang, Indonesia)

  • Lilik Sri HARIANI

    (Universitas PGRI Kanjuruhan Malang, Indonesia)

Abstract

This study aims to investigate the influence of independent variables, such as SME economic policies, political stability, funding access, regulatory changes, economic growth and policy uncertainty on SME performance leading up to the 2024 presidential election in Indonesia. This research employs a quantitative approach with regression analysis methodology. Data was collected through a survey using Google Form from SME owners in 29 districts and nine cities in East Java province. The research findings indicate that SME economic policies, political stability and economic growth have a positive and significant impact on SME performance. Meanwhile, funding access and policy uncertainty do not significantly affect SME performance. Regulatory changes also have a positive and significant impact on SME performance. These findings hold critical implications for the development of the SME ecosystem in Indonesia. In the context of an evolving economy, this research provides a solid foundation for decisionmaking in designing more effective policies. Additionally, the government’s involvement in creating a stable and conducive environment for supporting, advancing and developing the SME sector, which is a vital pillar of the Indonesian economy, is highlighted.

Suggested Citation

  • Ninik SRIJANI & Siti AISYAH & Lilik Sri HARIANI, 2023. "Presidential Election and SME Transformation in Indonesia: The Influence of Policies and Political Dynamics," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 4(10), pages 60-73, October.
    • Handle: RePEc:ahd:journl:v:4:y:2023:i:10:p:60-73
    DOI: 10.37945/cbr.2023.10.07
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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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