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4 CONCLUSIONS
This study concludes that capital access, business
planning, business networking and government
support have positive and significant impacts on
MSEs’ performance. Business networking is the best
variable that affects MSEs’ performance. The
implication of this study is that the findings provide
valuable insights for MSEs, and governments as
policy makers. MSEs must expand their business
network so that the existence of their business can be
maintained, and even better. In addition, through
business networking, MSEs are able to compensate
or accumulate resource constraints. Some efforts that
can be done are to form a network of production and
marketing network. MSEs can join with other MSEs
to add variety to the products, and work together to
penetrate new markets. Governments are expected to
implement appropriate policies and incentives to
develop MSEs and reduce the burden of bureaucracy
for new businesses, facilitate business licensing, and
facilitate MSEs and formal financial institutions in
an effort to reduce the difficulties of accessing
MSEs’ capital.
ACKNOWLEDGEMENTS
The author would like to thank to the
Directorate General for Strengthening Research and
Development of Ministry of Research, Technology
and Higher Education for the funding provided
through the MP3EI research grant in 2017.
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