Universal Journal of Management Vol. 4(1), pp. 36 - 41
DOI: 10.13189/ujm.2016.040105
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Growth Determinants of Small Medium Enterprises (SMEs)

Endi Sarwoko *, Christea Frisdiantara
Faculty of Economics and Business, Kanjuruhan University, Indonesia


Small Medium Enterprises (SMEs) are still an issue that is interesting to study because it is recognized that small businesses have a major role in employment and contribution to the gross domestic product. Previous research shows that the growth of SMEs is determined by the owner/manager characteristics (personal approach), and how the strategy is taken (managerial approach). This study empirically tested the three determinants of growth of small businesses, namely 1) the individual factors 2) organizational factors, and 3) environment factors. The study was conducted in SMEs assisted in the district of Malang, using a sample of 52 owners/managers of SMEs, which are taken by purposive sampling, analysis techniques using Path Analysis. The results showed that individual factors directly affects the growth of the business, as well as an indirect effect through organizational factors. So the individual factors are a determinant of the growth of SMEs, due to individual factors which reflected the business experience and the motivation of the owners/managers will be able to manage the organization becomes more effective so as to compete, and the effects are on the achievement of business growth. Environmental factors provide the greatest impact in achieving the growth of SMEs, it means the ability of owner/managers to produce competitive products, leverage technology, and diversity of products will determine the growth of SMEs.

Business Growth, Individual Factors, Organizational Factors, Environment Factors

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Endi Sarwoko , Christea Frisdiantara , "Growth Determinants of Small Medium Enterprises (SMEs)," Universal Journal of Management, Vol. 4, No. 1, pp. 36 - 41, 2016. DOI: 10.13189/ujm.2016.040105.

(b). APA Format:
Endi Sarwoko , Christea Frisdiantara (2016). Growth Determinants of Small Medium Enterprises (SMEs). Universal Journal of Management, 4(1), 36 - 41. DOI: 10.13189/ujm.2016.040105.