Establishing Sustainable Practices on Micro, Small and Medium Enterprises (MSMEs) to Advance Indonesia’s Economic Growth]

Abstract

Micro, Small and Medium Enterprises (MSMEs) have been contributing immensely to the economy by producing the largest number of entrepreneurs, employment and workforce absorption as well as a substantial contributor to the Gross National Income. Nonetheless, numerous unresolved issues were still encountered by MSMEs, such as (1) inadequacies in financial and managerial skills; (2) poor qualities, quantities and innovations of product and/or services; (3) limitations of technological advancement. In order to boost its competitiveness, MSMEs are required to develop sustainable strategies to further support MSMEs actors to come to be aware of and start setting up sustainable business practices, wherein the MSMEs business are not solely profit-oriented, yet will also be implementing the concept of triple bottom line: profit, people, planet. As MSMEs’ business practices are classified as the real sector, it mostly deals with the use of natural resources and environment, in which the two elements required further attention in regard to the next generation. MSMEs that capture the essence and integrate sustainability into their businesses may generate profit from lower costs, reduced risks and new opportunities.

Keywords: Sustainable, MSMEs, Indonesia’s Economic Growth

JEL Classification: A10