GOVERNMENT POLICY ANALYSIS ON MEDIUM SMALL BUSINESS IN DEVELOPING ENTREPRENEURSHIP

Abstract

Indonesia currently embraces a populist economic system, in which the society is being promoted to create small and medium enterprises which can later grow and can compete with large industries or companies owned by Indonesian citizens as well as competing with foreign companies. In order to intensify small and medium enterprises, the government makes policies on improving small and medium enterprises in the framework of entrepreneurship. Therefore, researchers need to examine government policies concerning small and medium enterprises (SMEs) in developing entrepreneurship. This study aims to describe and find the right policy model for the government to support small and medium enterprises in developing entrepreneurship as one of the efforts to create a populist economic system. The method used is descriptive method with qualitative approach with data collection through literature study and documentation. The expected result of this research is to formulate the right government policy model to support small and medium enterprises. The result of the research shows that government policy is based on five strategies, among others: 1) Increasing the quality of human resources, in this strategy strengthening the entrepreneurial sector by doing the arrangement and development in the field of education, training, assistance in encouraging support for personal quality improvement will start entrepreneurship. 2) Increased access to financing and expansion of financing schemes, through the development of financing institutions / cooperative banks and SMEs, as well as optimization of nonbank financing sources, 3) Increasing and adding value of products and marketing coverage, expanding the application of appropriate technology to diversify products based on value chain and (5) ease, certainty and business protection, harmonization of sectoral and regional permits, reduction of types, fees and time of licensing arrangements, enhancement of effectiveness of enforcement regulation of fair business competition.