Examination of Elements Influencing the Income Level of Micro Enterprises
Downloads
This research intends to examine the elements that can promote micro-entities functioning in both the formal and informal sectors, particularly regarding income stability, enabling these micro-entities to grow and achieve sustainability through a descriptive approach. The descriptive research method does not seek to identify causal links between variables or evaluate hypotheses; instead, it is conducted to provide a description of a variable or phenomenon grounded in established facts. The research approach was conducted via interviews, observations, and literature reviews. Information from interviews, observations, and literature reviews was analyzed using the SWOT (Strengths, Weaknesses, Opportunities and Threats) model to pinpoint internal strengths and weaknesses, as well as external opportunities and threats influencing the income levels of micro-entities. The study's findings indicate that business adaptability, closeness to customers, technological advancements, and governmental policy backing through its initiatives positively influence income growth, whereas restricted capital, low digital literacy among micro-entrepreneurs, heightened competition, and economic volatility contribute to a reduction in micro-entrepreneur income.
Abellana, J. J., & Alonzo, A. (2025). Distribution Channels and Innovation Strategies as Catalysts for MSME Growth: Insights from Northern Mindanao’s Bakery Sector. American Journal of Social Development and Entrepreneurship, 4(1), 49–60. https://doi.org/10.54536/ajsde.v4i1.4588
Ahn, J., & Tan, B. (2025). Supply Chain Diversification and Resilience. IMF Working Papers, 2025(102), 1. https://doi.org/10.5089/9798229011419.001
Aqsa, D. F., , Titik Rosnani, Wenny Pebrianti, R., & Heriyadi. (2022). Ilomata International Journal of Management. Scholar.Archive.Org, 3(1), 327–342. Retrieved from https://scholar.archive.org/work/sy63srah7bdsfaghtihipmxpqy/access/wayback/https://www.ilomata.org/index.php/ijjm/article/download/302/222
Arsa, I. K. S., Mertanadi, I. M., Karta, N. L. P. A., & Widiastini, N. M. A. (2025). A Literature-Based Study on Leveraging Cultural Elements to Boost MSME Product Value. International Journal of Research and Innovation in Social Science (IJRISS), IX(2454), 1330–1343. https://doi.org/10.47772/IJRISS
Bamidele Micheal Omowole, Oghenekome Urefe, Chukwunweike Mokogwu, & Somto Emmanuel Ewim. (2024). Integrating fintech and innovation in microfinance: Transforming credit accessibility for small businesses. International Journal of Frontline Research and Reviews, 3(1), 090–100. https://doi.org/10.56355/ijfrr.2024.3.1.0032
Bappenas RI. (2024). Pekerjaan Layak dan Pertumbuhan Ekonomi. Https://Sdgs.Bappenas.Go.Id/17-Goals/Goal-8/, 98–111.
Chen, K. (2025). A Study on the Coping Strategies of Taiwan’s Smes Facing the Fluctuation of Rubber Raw Material Prices: A Case Study of Five Local Manufacturing Companies. Journal of Economics, Management and Trade, 31(6), 169–176. https://doi.org/10.9734/jemt/2025/v31i61307
Clarke, R. (2023). Beyond Borders : Global Expansion Strategies for Small and Medium Enterprises, 12, 20–21. https://doi.org/10.37421/2167-0234.2023.12.469
de Jong, E., & Vijge, M. J. (2021). From Millennium to Sustainable Development Goals: Evolving discourses and their reflection in policy coherence for development. Earth System Governance, 7, 100087. https://doi.org/10.1016/j.esg.2020.100087
Devos, J., & Chen, Z. (2022). Why we shouldn’t overlook the impact of SMEs on local and global economies.
Dung, L. T., & Dung, T. T. H. (2024). Businesses model innovation: a key role in the internationalisation of SMEs in the era of digitalisation. Journal of Innovation and Entrepreneurship, 13(1). https://doi.org/10.1186/s13731-024-00391-7
Gamage, S. K. N., Ekanayake, E. M. S., Abeyrathne, G. A. K. N. J., Prasanna, R. P. I. R., Jayasundara, J. M. S. B., & Rajapakshe, P. S. K. (2020). A review of global challenges and survival strategies of small and medium enterprises (SMEs). Economies, 8(4). https://doi.org/10.3390/ECONOMIES8040079
Gardiner, G., Lee, D. I., Baranski, E., Funder, D. C., Beramendi, M., Bastian, B., … Thi Thu Bui, H. (2023). The economic well-being of nations is associated with positive daily situational experiences. Current Research in Ecological and Social Psychology, 4(June 2022). https://doi.org/10.1016/j.cresp.2023.100088
Georgakoudis, E. D., & Pechlivanidou, G. G. (2025). Sustainable Packaging Design : Packaging Optimization and Material Reduction for Environmental Protection and Economic Benefits to Industry and Society, 1–16.
Giakoulas, D. (2024). Internationalisation of SMEs from a Theoretical Perspective: Challenges, Strategies and Implications. Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-74554-6_17
International Monetary Fund. Asia and Pacific Dept. (2024). Financing Barriers and Performance of Micro, Small, and Medium Enterprises (MSMES). IMF Staff Country Reports, 2024(271), A002. Retrieved from https://www.elibrary.imf.org/view/journals/002/2024/271/article-A002-en.xml
Kahveci, E. (2025). Digital Transformation in SMEs: Enablers, Interconnections, and a Framework for Sustainable Competitive Advantage. Administrative Sciences, 15(3). https://doi.org/10.3390/admsci15030107
Kazlauskaitė, R., Autio, E., Gelbūda, M., & Šarapovas, T. (2015). The resource-based view and sme internationalisation: An emerging economy perspective. Entrepreneurial Business and Economics Review, 3(2), 53–64. https://doi.org/10.15678/EBER.2015.030205
Keelson, S. A., Cúg, J., Amoah, J., Petráková, Z., Addo, J. O., & Jibril, A. B. (2024). The Influence of Market Competition on SMEs’ Performance in Emerging Economies: Does Process Innovation Moderate the Relationship? Economies, 12(11). https://doi.org/10.3390/economies12110282
Kemenkeu RI. (2024). Tujuh Tahun Mendukung Usaha Mikro Bertumbuh: Evaluasi dan Tantangan. Kementrian Keuangan RI Ditjen Perbendaharaan BLU PUSAT Investasi Pemerintah. Retrieved from https://pip.kemenkeu.go.id/berita/142/tujuh-tahun-mendukung-usaha-mikro-bertumbuh-evaluasi-dan-tantangan
Khusaini, K., Lestari, L. W., Widiarti, A., & Suherman, A. (2022). Social Capital and Location as Determinants in Improving MSME Performance. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB), 10(2), 123–136. https://doi.org/10.21009/jpeb.010.2.3
Kumar, S., & Singh, P. (2023). An Analysis of Government Support Programs for Small Business Development and Growth. Scholedge International Journal of Business Policy & Governance, 10(02), 8–19.
Maksum, I. R., Sri Rahayu, A. Y., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3). https://doi.org/10.3390/JOITMC6030050
Mensah, I., Boohene, R., & Mensah, M. S. B. (2026). Effects of entrepreneurial networking on sustainable growth of small enterprises – the mediating role of innovation. Benchmarking: An International Journal, 33(1), 33–57. https://doi.org/https://doi.org/10.1108/BIJ-04-2024-0276
Ndlovu, M. N., Ndlovu, E. N., & Ebewo, P. E. (2025). The Intersection of Business Models and SME Performance: A Bibliometric Analysis of Research Trends. Administrative Sciences, 15(4). https://doi.org/10.3390/admsci15040143
Nugroho, M. A., Novitasari, B. T., & Timur, R. P. (2024). The Mediating Role of E-Commerce Adoption in the Relationship Between Government Support and SME Performance in Developing Countries. International Journal of Sustainable Development and Planning, 19(3), 1023–1032. https://doi.org/10.18280/ijsdp.190320
OECD. (2023). OECD SME and Entrepreneurship Outlook. OECD Publishing.
Offiong, U. P., Szopik-Depczyńska, K., Cheba, K., & Ioppolo, G. (2024). FinTech as a digital innovation in microfinance companies – systematic literature review. European Journal of Innovation Management, 27(9), 562–581. https://doi.org/10.1108/EJIM-04-2024-0462
Pedraza, J. M. (2021). The Micro, Small, and Medium-Sized Enterprises and Its Role in the Economic Development of a Country. Business and Management Research, 10(1), 33. https://doi.org/10.5430/bmr.v10n1p33
Perdana, E., & Syah, T. Y. R. (2023). The Effect of Social Capital and Collaborative Knowledge Creation on E-Business Proactiveness and Organizational Agility in Creating Business Sustainability. International Journal of Applied Business …, 5(2), 167–186. https://doi.org/10.35313/ijabr.v5i02.326
PERMANA, D., NAWANGSARI, L. C., SISWANTI, I., KURNIASIH, A., & ARIJANTO, A. (2025). Eco-Friendly Living: Promoting Sustainable Consumption and Waste Management Among Msmes in Malaysia. In Iccd (Vol. 7, pp. 614–619). https://doi.org/10.33068/iccd.v7i1.920
Prabowo, I. A., & Wiwoho, J. (2025). Kemitraan UMKM-Usaha Besar: Katalisator Penguatan Ekonomi Mikro Berkelanjutan. Social, Humanities, and Educational Studie, 8(2), 388–400. Retrieved from https://jurnal.uns.ac.id/SHES/article/view/105099/51076
Pramudya, A. (2024). Mengenal Istilah SAK EMKM dan Kaitannya dengan Pengusaha Kecil.
Prasannath, V., Adhikari, R. P., Gronum, S., & Miles, M. P. (2024). Impact of government support policies on entrepreneurial orientation and SME performance. International Entrepreneurship and Management Journal (Vol. 20). Springer US. https://doi.org/10.1007/s11365-024-00993-3
Prayogi, W., Muda, I., & Kholis, A. (2024). Analysis of the Use of Digital Accounting in Micro, Small, and Medium Enterprises (MSMEs) in Medan, Indonesia. International Journal of Research and Review, 11(5), 100–111. https://doi.org/10.52403/ijrr.20240513
Purba, M. H. Y., Sirait, N. N., Siregar, M., & Harianto, D. (2025). Unequal regulation in partnerships between MSMEs and large enterprises in Indonesia. Problems and Perspectives in Management, 23(1), 424–436. https://doi.org/10.21511/ppm.23(1).2025.32
Purgał-Popiela, J. (2025). Sustainability in human resource management practices used by small and medium-sized enterprises: a systematic review. Central European Management Journal, 33(1), 87–106. https://doi.org/10.1108/CEMJ-03-2024-0097
Putra, F. I. F. S., Panjaitan, R., Fatmawati, E. R., & Rumanti, S. W. (2025). The power of cultural resource bricolage: Driving market performance through customer-culture theory. Asian Management and Business Review, 5(2), 402–419. https://doi.org/10.20885/ambr.vol5.iss2.art10
Putra, F. P., Budi, S. P., Widodo, W., & Firmansyah. (2019). The debate of impact from government credit guarantee on business development and non-performing loan of micro and small enterprises (MSEs): A literature survey. Academy of Accounting and Financial Studies Journal, 23(3), 1–9.
Queiroz, M. M., Fosso, S., Jose, C., Jabbour, C., & Machado, M. C. (2022). Supply chain resilience in the UK during the coronavirus pandemic: A resource orchestration perspective. International Journal of Production Economics, 245(January).
Rangkuti, F. (2009). Strategi Promosi yang Kreatif dan Analisis Kasus Integrated Marketing Communication. Jakarta: PT. Gramedia Pustaka Utama.
Riwanto, A., Suryaningsih, S., & Putri, D. K. (2023). Reform and Breakthrough in Business Regulations for Empowering MSMEs in Indonesia and the Netherlands. Journal of Human Rights, Culture and Legal System, 3(3), 513–540. https://doi.org/10.53955/jhcls.v3i3.109
Rubedo, H., Jusuf, D. I., Hanna, A., & FR, A. P. (2024). Digital Marketing Strategies for SMEs Based on Local Wisdom in Indonesia. PINISI Discretion Review, 7(2), 489. https://doi.org/10.26858/pdr.v7i2.66000
Shi, X., Prajogo, D., Fan, D., & Oke, A. (2025). Is operational flexibility a viable strategy during major supply chain disruptions? Evidence from the COVID-19 pandemic. Transportation Research Part E: Logistics and Transportation Review, 195. https://doi.org/https://doi.org/10.1016/j.tre.2024.103952
Sinolungan, A. Y. R. M., & Kimbal, R. W. (2024). Factors Influencing the Income of Micro, Small, and Medium Enterprises (MSMEs) in Minahasa Regency. International Journal of Applied Business & International Management (IJABIM), 9(2), 319–334. https://doi.org/10.61132/ijema.v2i3.690
Somboonvechakarn, C., Taiphapoon, T., Anuntavoranich, P., & Sinthupinyo, S. (2022). Communicating innovation and sustainability in family businesses through successions. Heliyon, 8(12), e11760. https://doi.org/10.1016/j.heliyon.2022.e11760
Sugito, Lubis, A., & Muliono, R. (2025). The Role of Local Wisdom in Increasing the Competitiveness of the Creative Economy of Ulos in North Sumatra Province Through the Green Digital Marketing Model. Journal of Lifestyle and SDGs Review, 5(3), e04058. Retrieved from https://sdgsreview.org/LifestyleJournal/article/view/4058
Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif, Dan R&D. Bandung: Alfabeta.
Sullivan-Taylor, B., & Branicki, L. (2011). Creating resilient SMEs: Why one size might not fit all. International Journal of Production Research, 49(18), 5565–5579. https://doi.org/10.1080/00207543.2011.563837
Suminah, S., Suwarto, S., Sugihardjo, S., & Anantanyu, S. (2020a). Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era, (January).
Suminah, S., Suwarto, S., Sugihardjo, S., & Anantanyu, S. (2020b). Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era, (January).
Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021a). Economic growth, increasing productivity of smes, and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–37. https://doi.org/10.3390/joitmc7010020
Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021b). Economic growth, increasing productivity of smes, and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–37. https://doi.org/10.3390/joitmc7010020
Susiang, M. I. N. (2024). Dynamic Capabilities, Resources, and Social Capital in Creating Sustainable Competitive Strategies in Indonesian MSME. International Journal of Business, Law, and Education, 5(1), 1033–1045. https://doi.org/10.56442/ijble.v5i1.499
Tambunan, T. T. H. (2021). Indonesian MSMEs and their access to financing. International Research Journal of Social Sciences. Retrieved from www.isca.me
Tambunan, T. T. H. (2022). Recent Development of Micro, Small and Medium Enterprises in Indonesia. International Journal of Social Sciences and Management Review, 06(01), 193–214. https://doi.org/10.37602/ijssmr.2022.6112
Undang-Undang Republik Indonesia Nomor 20 Tahun. (2008). Undang-Undang Republik Indonesia Nomor 20 Tahun 2008, (1).
Yousuf, A., Haddad, H., Pakurár, M., Kozlovskyi, S., Mohylova, A., Shlapak, O., & János, F. (2019). The effect of operational flexibility on performance: A field study on small and medium-sized industrial companies in Jordan. Montenegrin Journal of Economics, 15(1), 47–60. https://doi.org/10.14254/1800-5845/2019.15-1.4
Yuliana, S., Fatmala, E., Adiansyah, N. P., Haryadi, D., & Wahyudi, W. (2024). Operating costs and profitability to company value. International Journal of Applied Finance and Business Studies, 11(4), 928–934. https://doi.org/10.35335/ijafibs.v11i4.247
Zangana, H., Natheer Yaseen Ali, & Ayaz khalid Mohammed. (2024). Navigating the Digital Marketplace: A Comprehensive Review of E-Commerce Trends, Challenges, and Innovations. TIJAB (The International Journal of Applied Business), 8(1), 88–103. https://doi.org/10.20473/tijab.v8.i1.2024.54618
Copyright (c) 2026 Yoga Tantular Rachman, Niki Hadian, Yogo Heru Prayitno

This work is licensed under a Creative Commons Attribution 4.0 International License.
All Content should be original and unpublished.

