Internal Control and Risk Management Issues on The Sustainability Micro and Small Enterprises in Indonesia

Yıl 2022, Cilt: 4 Sayı: 1, 1 - 19, 31.01.2022

Wiwik Utami , Lucky Nugroho

https://doi.org/10.47103/bilturk.993568

Cited By: 2

Öz

The abstract has to be written within 250 words maximum and followed by three to five keywords. The micro and small business segment is the majority of business actors in Indonesia. Therefore, micro and small enterprises (MSEs) are the backbone of Indonesia's economy and focus on all stakeholders' attention. This study aims to analyze the factors that can affect the sustainability of micro and small businesses. These factors are internal control and risk management. The method used in this research is quantitative. The total population is all micro and small business actors around the Mercu Buana campus who do stationery and photocopies for campus needs. The number of samples that meet the requirements is 54 MSEs. The result of statistical data processing is that internal control significantly affects micro and small businesses' sustainability.
Furthermore, risk management has no significant effect on the sustainability of micro and small businesses. Also, it is known that MSEs are businesses that have a dependency on the business owner. Therefore, the owner's business experience has an essential role in maintaining the sustainability of the MSEs business.

Anahtar Kelimeler

Micro and Small Enterprises (MSEs), Sustainability, Internal Control, Risk Management

Destekleyen Kurum

Univeristas Mercu Buana

Kaynakça

• Agier, I., & Szafarz, A. (2103). Subjectivity in credit allocation to micro-entrepreneurs: evidence from Brazil. Small Business Economics, 41(1), 263–275. https://doi.org/10.1007/s11187-012-9429-9
• Ahmadun. (2015). Usaha Mikro, Kecil dan Menengah (UMKM) Sebagai Basis Ekonomi Kerakyatan. Jurnal Administrasi Dan Manajemen, 5(1), 250–256. https://doi.org/10.1017/CBO9781107415324.004
• Alkadafi, M. (2014). Penguatan Ekonomi Masyarakat Melalui Pengelolaan Kelembagaan Badan Usaha Milik Desa Menuju Asean Economic Community 2015. Jurnal EL-RIYASAH, 5(1), 32–40.
• Andi Wijayanto. (2013). Pengaruh Karakteristik Wirausahawan Terhadap Tingkat Keberhasilan Usaha. Jurnal Ilmu Sosial, 12(1), 16–28.
• Arafah, W., & Nugroho, L. (2016). Ethics Commitment in Microfinance and Shariah Microfinance Institution. International Journal of Research in Business Studies and Management, 3(3), 7–11.
• Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing, 13(1), 43–60.
• Awaluddin, M. (2014). Kajian Faktor Penentu Kinerja Usaha Kecil Di Kota Makassar. Jurnal Minds: Manajemen Ide Dan Inspirasi, 2(2), 120–136.
• Ayyagari, M., Beck, T., & Demirguc-Kunt, A. (2007). Small and Medium Enterprises across the Globe. Source: Small Business Economics, 29(4), 415–434. https://doi.org/10.1007/sl
• Bruwer, J.-P., Coetzee, P., & Meiring, J. (2019). The perceived adequacy and effectiveness of internal control activities in South African small, medium and micro enterprises. The Southern African Journal of Entrepreneurship and Small Business Management, 11(1), 1–11. https://doi.org/10.4102/sajesbm.v11i1.148
• Cieslik, K., Hudon, M., & Verwimp, P. (2019). Oxford Development Studies Unruly entrepreneurs-investigating value creation by microfinance clients in rural Burundi Unruly entrepreneurs-investigating value creation by microfinance clients in rural Burundi. Oxford Development Studies, 47(4), 373–390. https://doi.org/10.1080/13600818.2019.1597034
• Dewanti, I. S. (2010). Pemberdayaan Usaha Kecil Dan Mikro: Kendala Dan Alternatif Solusinya. Jurnal Administrasi Bisnis, 6(2), 1–10. Retrieved from http://repository.upnyk.ac.id/6209/2/Ida_susi_Dewanti_naskah.pdf
• Djakfar, M. (2015). Makna Kerja Bagi Pengusaha Kecil Muslim Di Tengah Perkembangan Bisnis Kuliner. Jurnal Al Hikam, 10(2), 410–433. https://doi.org/10.19105/ihkam.v10i2.736
• Guérin, I., Kumar, S., & Agier, I. (2013). Women’s Empowerment: Power to Act or Power over Other Women? Lessons from Indian Microfinance. Oxford Development Studies, 41(Sup1), S76–S94. https://doi.org/10.1080/13600818.2013.781147
• Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155–180. https://doi.org/10.1108/03074351311294007
• Hampel-Milagrosa, A. E., Loewe, M., & Reeg, C. (2015). The Entrepreneur Makes a Difference: Evidence on MSE Upgrading Factors from Egypt, India, and the Philippines. World Development, 66, 118–130. https://doi.org/10.1016/j.worlddev.2014.08.005
• Hardati, P. (2013). Pertumbuhan penduduk dan struktur lapangan pekerjaan di jawa tengah. Forum Ilmu Sosial, 40(2), 219–229. Retrieved from http://journal.unnes.ac.id/nju/index.php/FIS
• Herliansyah, Y., Nugroho, L., Ardilla, D., & Putra, Y. M. (2020). The Determinants of Micro , Small and Medium Enterpreneur (MSME) Become Customer of Islamic Banks (Religion, Religiousity and Location of Islamic Banks). In The 1st Annual Conference Economics, Business, and Social Sciences (pp. 1–10). https://doi.org/10.4108/eai.26-3-2019.2290775
• Hermes, N., & Lensink, R. (2011). Microfinance: Its Impact, Outreach, and Sustainability. World Development, 39(6), 875–881. https://doi.org/10.1016/j.worlddev.2009.10.021
• Hudon, M. (2009). Should Access to Credit be a Right? Journal of Business Ethics, 84(1), 17–28. https://doi.org/10.1007/s10551-008-9670-y
• Jones, P., Simmons, G., Packham, G., Beynon-Davies, P., & Pickernell, D. (2014). An exploration of the attitudes and strategic responses of sole-proprietor micro-enterprises in adopting information and communication technology. International Small Business Journal, 32(3), 285–306. https://doi.org/10.1177/0266242612461802
• Kemenkop&UMKM. (2018). Kementerian Koperasi dan Usaha Kecil dan Menengah - www.depkop.go.id. Retrieved May 21, 2020, from http://www.depkop.go.id/data-umkm
• Kusuma, P. T. W. W., & Mayasti, N. K. I. (2014). Analisa kelayakan finansial pengembangan usaha produksi komoditas lokal: mie berbasis jagung. Agritech, 34(2), 194–202.
• Labie, M., Laureti, C., & Szafarz, A. (2017). Discipline and flexibility: a behavioural perspective on microfinance product design. Oxford Development Studies, 45(3), 321–337. https://doi.org/10.1080/13600818.2016.1239701
• Ladzani, W. M., & Van Vuuren, J. J. (2002). Entrepreneurship Training for Emerging SMEs in South Africa. Journal of Small Business Management, 40(2), 153–160.
• Mcguire, P. B., & Conroy, J. D. (1998). Asian Financial Crisis. Brisbane: Foundation for Development Cooperation. Brisbane.
• Mead, D. C., & Liedholm, C. (1998). The Dynamics of Micro and Small Enterprises in Developing Countries. World Development, 26(1), 6–74.
• Miller, S. K., Anganuzzi, A., Butterworth, D. S., Davies, C. R., Donovan, G. P., Nickson, A., … Restrepo, V. (2019). Improving communication: The key to more effective MSE processes. Canadian Journal of Fisheries and Aquatic Sciences, 76(4), : 643-656. https://doi.org/10.1139/cjfas-2018-0134
• Mor, S., Madan, S., Archer, G. R., & Ashta, A. (2020). Survival of the Smallest: A Study of Microenterprises in Haryana, India. Article Millennial Asia, 11(1), 54–78. https://doi.org/10.1177/0976399619900609
• Mori, N., & Mersland, R. (2014). Boards in microfinance institutions: how do stakeholders matter? Journal of Management & Governance, 18(1), 285–313. https://doi.org/10.1007/s10997-011-9191-4
• Nugroho, A., & Sihite, J. (2018). Exploring the Indonesian Tourism Destination via Indonesia Travel @ indtravel. In 2nd International Conference on Tourism, Gastronomy, and Tourist Destination (ICTGTD 2018) Exploring (Vol. 52, pp. 29–32).
• Nugroho, L. (2020). Pengetahuan Konsumen Vis A Vis Perubahan Perilaku Konsumen Pada Era Digital. In Perilaku Konsumen dan Perkembangannya di Era Digital (pp. 65–77). Widina Bhakti Persada.
• Nugroho, L., & Chowdhury, S. L. K. (2015). Mobile Banking for Empowerment Muslim Women Entrepreneur: Evidence from Asia (Indonesia and Bangladesh). Tazkia Islamic Finance and Business Review, 9(1), 83–100.
• Nugroho, L., Hidayah, N., Ali, A. J., & Badawi, A. (2020). E-commerce to improve homemaker productivity (women entrepreneur empowerment at Meruya Utara, Kembangan district, West Jakarta, Indonesia). Amalee: Indonesian Journal of Community Research & Engagement, 1(01), 13–24.
• Nugroho, L., Hidayah, N., Badawi, A., & Ali, A. J. (2019). Socialization of mobile banking and internet banking for micro and small entrepreneurs (gender and business sector perspective- Kemayoran night market community). ICCD, 2(1), 419–426.
• Nugroho, L., Nurrohmah, S., & Anasta, L. (2018). Faktor-Faktor Yang Mempengaruhi Opini Audit Going Concern. Jurnal SIKAP (Sistem Informasi, Keuangan, Auditing Dan Perpajakan), 2(2), 96. https://doi.org/10.32897/jsikap.v2i2.79
• Nugroho, L., & Tamala, D. (2018). Persepsi Pengusaha UMKM Terhadap Peran Bank Syariah. Jurnal SIKAP (Sistem Informasi, Keuangan, Auditing Dan Perpajakan), 3(1), 49–62.
• Nugroho, L., Utami, W., Sanusi, Z. M., & Setiyawati, H. (2018). Corporate Culture and Financial Risk Management in Islamic Social Enterprises (Indonesia Evidence). International Journal of Commerce and Finance (Vol. 4).
• Nursiah, T., Kusnadi, N., & Burhanuddin, B. (2017). Perilaku Kewirausahaan pada Usaha Mikro Kecil (UMK) Tempe di Bogor Jawa Barat. Jurnal Agribisnis Indonesia, 3(2), 145. https://doi.org/10.29244/jai.2015.3.2.145-158
• Patten, R. H., Rosengard, J. K., & Johnston, D. E. (2001). Microfinance Success Amidst Macroeconomic Failure: The Experience of Bank Rakyat Indonesia During the East Asian Crisis. World Development, 29(6), 1057-1069. Retrieved from www.elsevier.com/locate/worlddev
• Pedchenko, N., Strilec, V., Kolisnyk, G. M., Dykha, M. V., & Frolov, S. (2018). Business angels as an alternative to financial support at the early stages of small businesses’ life cycle. Investment Management and Financial Innovations, 15(1), 166–179. https://doi.org/10.21511/imfi.15(1).2018.15
• Rijkers, B., Ruggeri, C., & Teal, F. (2010). Who Benefits from Promoting Small Enterprises? Some Empirical Evidence from Ethiopia. World Development, 38(4), 523–540. https://doi.org/10.1016/j.worlddev.2009.10.007
• Sarwono, H. A. (2015). Profil Bisnis Usaha Mikro, Kecil Dan Menengah (Umkm). Bank Indonesia dan LPPI.
• Setiaji, K., & Fatuniah, A. L. (2018). View of Pengaruh Modal, Lama Usaha dan Lokasi Terhadap Pendapatan Pedagang Pasar Pasca Relokasi. Jurnal Pendidikan Ekonomi & Bisnis, 6(1), 1–14. Retrieved from http://journal.unj.ac.id/unj/index.php/jpeb/article/view/5609/4315
• Siallagan, H., & Machfoedz, M. (2006). Mekanisme Corporate Governance, Kualitas Laba dan Nilai Perusahaan. In Simposium Nasional Akuntansi 9 Padang (pp. 23–26).
• Suci, Y. R. (2017). Perkembangan UMKM (Usaha Mikro Kecil dan Menengah) di Indonesia. Jurnal Ilmiah Cano Ekonomos, 6(1), 51–58.
• Suryo, M., Nugraha, E., & Nugroho, L. (2019). Pentingnya Opini Audit Going Concern dan Determinasinya. Inovbiz: Jurnal Inovasi Bisnis, 7(2), 123–130.
• Tambunan, T. (2012). Peran Usaha Mikro dan Kecil dalam Pengentasan Kemiskinan di Daerah. Jurnal Bina Praja, 04(02), 73–92. https://doi.org/10.21787/jbp.04.2012.73-92
• Tarmidi, L. T. (1999). Krisis moneter Indonesia: Sebab, dampak, peran IMF dan saran. Buletin Ekonomi Moneter Dan Perbankan, 1(4), 1–25.
• Utami, W., & Nugroho, L. (2019). Going Concern Studies of Government Social Enterprise in Indonesia Going Concern Studies of Government Social Enterprise in Indonesia (Village Government Enterprises Case/Bumdes-Lebak Region, West Java Province-Indonesia). International Journal Entrepreneurship and Management Inquiries, 3(5), 191–206. Retrieved from https://www.researchgate.net/publication/338215781
• Winanto, A. R. (2019). Investment, Labor and Their Effects on Economic Growth of Ponorogo Regency. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 14(1), 68. https://doi.org/10.24269/ekuilibrium.v14i1.1510
• Wiroto, D. W. (2016). Kapital Sosial dan Kepemimpinan dalam Pengembangan Kompetensi Usaha Mikro dan Kecil di Era MEA: Sebuah Tinjuan Konseptual Ringkas. Prosiding Seminar Nasional, 2(1), 600–610.