The Role of Dynamic Environment in Indonesia SMEs
Corresponding Author(s) : Sumaryanto Sumaryanto
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 3 No. 2 (2023)
Abstract
The importance of SMEs in a country's economy encourages the government to increase the competitiveness of SMEs. Indonesia is no exception; SMEs can support the country's economy and accommodate most of the population as workers. Financial performance is something that must be achieved by SMEs in order to survive in business competition. SMEs need to expend all their abilities to achieve good financial performance. The self-motivation of SME actors is needed to do this. The relationship between motivation and financial performance has not been conclusive, so that other variables may strengthen this relationship. During the Covid 19 Pandemic, it encouraged more dynamic environmental changes. This study used 120 SMEs in the Special Region of Yogyakarta as respondents by testing the hypothesis using MRA on Stata software. Our tests separate respondents as owners and managers based on business experience. The more experienced SMEs owners show that the dynamic environment strengthens the relationship between motivation and financial performance. The experience of doing business in SMEs shows that there is a learning curve for SMEs owners to perform even better
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