Indonesian Journal of Law and Economics Review
Vol 19 No 3 (2024): August
Marketing Management

Increasing the Income of SMEs in Indonesia through the Power of Quality and Education
Meningkatkan Pendapatan UKM di Indonesia melalui Kekuatan Kualitas dan Pendidikan


View Article
  • Rizky Fajar Farhansyah,
  • Sriyono*
Rizky Fajar Farhansyah
Program Studi Manajemen, Universitas Muhammadiyah Sidoarjo, Indonesia, Indonesia
Sriyono
Program Studi Manajemen, Universitas Muhammadiyah Sidoarjo, Indonesia, Indonesia *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/ijler.v19i3.1129
Published June 24, 2024
Keywords
  • SMEs,
  • product quality,
  • education level,
  • income,
  • Sidoarjo Regency
How to Cite
Farhansyah, R. F., & Sriyono. (2024). Increasing the Income of SMEs in Indonesia through the Power of Quality and Education. Indonesian Journal of Law and Economics Review, 19(3), 10.21070/ijler.v19i3.1129. https://doi.org/10.21070/ijler.v19i3.1129

Copyright (c) 2024 Rizky Fajar Farhansyah, Sriyono

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Crossref
Scopus
Google Scholar
Europe PMC

Abstract

This study explores the impact of product quality and the educational level of small and medium enterprise (SME) owners on SME income in Sidoarjo Regency, Indonesia. Using a quantitative approach with survey data from 52 SMEs, the analysis via SMARTPLS4 reveals that both product quality and education significantly influence SME income. The findings suggest that enhancing product quality and investing in education can lead to higher SME income, providing valuable insights for SME owners and policymakers to support economic growth in the region.

 

Highlight:  

 

  • Impact: Product quality and education level significantly influence SME income.
  • Method: Analyzed 52 SMEs in Sidoarjo using SMARTPLS4.
  • Recommendation: Improve product quality and education to boost SME income.

 

Keyword:  SMEs, product quality, education level, income, Sidoarjo Regency

View Article

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

  1. H. Noviono and D. Pelitawati, "Pengaruh Modal Kerja, Pendidikan Dan Teknologi Terhadap Pendapatan Usaha Mikro Kecil Dan Menengah (UMKM) Di Sentra Industri Tas Dan Koper Tanggulangin," J. Din. Adm. Bisnis, vol. 5, no. 2, pp. 1–8, 2019. [Online]. Available: http://jurnal.untag-sby.ac.id/index.php/adbis/article/view/3038
  2. N. Amalia, "Pengaruh Modal Biaya Produksi Jumlah Tenaga Kerja dan Tingkat Pendidikan Terhadap Pendapatan UMKM Pada Industri Batu Bata Di Kecamatan Teras," Jurnal Manajemen Informatika & Teknologi, vol. 2, no. 2, pp. 69–78, 2022, doi: 10.51903/mifortekh.v2i2.208.
  3. I. Online, F. Ekonomi, and U. Bhayangkara, "Analisis Pengaruh Aksesibilitas Permodalan, Peningkatan Kualitas Produk dan Peningkatan Kualitas SDM terhadap Pendapatan UMKM di Sidoarjo," Bharanomics, vol. 3, pp. 39–47, 2022, doi: 10.46821/bharanomics.v3i1.329.
  4. M. S. Andrean and Ervina, "Pengaruh Modal Usaha, Lokasi Usaha, Lokasi Pemasaran Dan Kualitas Produk Terhadap Pendapatan UMKM," Paper Knowledge. Toward a Media History of Documents, vol. 4, no. 1, pp. 183–198, 2022, doi: 10.31539/jomb.v4i1.3498.
  5. D. Hasanah and R. Latifahul, "Pengaruh Modal, Tingkat Pendidikan dan Teknologi terhadap Pendapatan UMKM di Kabupaten Purbalingga," Kinerja, vol. 17, no. 2, pp. 305–313, 2020.
  6. W. Oktaviana, "Pengaruh Modal, Biaya Produksi, Jumlah Tenaga Kerja dan Tingkat Pendidikan Terhadap Pendapatan UMKM Sektor Kuliner Di Kecamatan Lubuk Begalung Kota Padang," Horizon, vol. 1, no. 2, pp. 367–383, 2021, doi: 10.22202/horizon.2021.v1i2.4784.
  7. S. Siyoto and M. A. Sodik, Dasar Metodologi Penelitian. Literasi Media Publishing, 2015.
  8. M. Darwin et al., Metode Penelitian Pendekatan Kuantitatif. Media Sains Indonesia, 2021.
  9. S. Syamsuryadin and C. F. S. Wahyuniati, "Tingkat Pengetahuan Pelatih Bola Voli Tentang Program Latihan Mental Di Kabupaten Sleman Yogyakarta," Jorpres (Jurnal Olahraga Prestasi), vol. 13, no. 1, pp. 53–59, 2017, doi: 10.21831/jorpres.v13i1.12884.
  10. Soehardi and D. Thamrin, "Model of Increasing Income and Customer Satisfaction Through Product Quality and Digital Marketing in the MSME of Baduy Community," International Journal of Multicultural and Multireligious Understanding (IJMMU), vol. 9, no. 3, pp. 673–682, 2022.
  11. K. Isololipu and A. W. Hardianto, "Analysis of Product Strategy to The Business Growth of Small Medium Enterprises," Jurnal Administrasi Bisnis, vol. 11, no. 1, pp. 13–20, 2022, doi: 10.14710/jab.v11i1.39197.
  12. T. P. Nugroho, "The Influence of Price and Product Quality on the Purchase Decision of Scarlett Cosmetic Whitening Products," Int. J. Manag. Econ., vol. 2, no. 2, pp. 1–11, 2023, doi: 10.56127/ijme.v2i2.596.
  13. H. Rohaeni, M. R. Rianto, N. W. Setyawati, M. Wijayanti, and Ganiawati, "The Influence of Product Quality on the Purchase Decision of MSME Products During the Covid-19 Pandemic," IJSMR, vol. 1, no. 5, pp. 497–512, Jun. 2023, doi: 10.55927/ijsmr.v1i5.4770.
  14. T. H. E. Influence, O. F. Product, D. On, T. H. E. Income, and O. F. Porang, "The Influence of Product Quality, Costs, and Distribution on the Income of Porang Farmers," pp. 361–373, 2022.
  15. H. Haryadi and S. Hodijah, "Analysis of Competitiveness Determinants, and Export Development Strategy of Indonesian MSME Products to the ASEAN Market," in Proceedings of the 3rd Progress in Social Science, Humanities and Education Research Symposium (PSSHERS 2021), I. Ifdil, Ed., Paris: Atlantis Press SARL, 2023, pp. 293–306. doi: 10.2991/978-2-494069-33-6_36.
  16. R. Hermawan, "The Influence of Digital Marketing and Product Quality on the Development of MSMEs in Moderating Entrepreneurial Characteristics," 2023. [Online]. Available: [specific URL not provided in the initial reference]
  17. A. Amaradiwakara and M. M. Gunatilake, "Factors Affecting Growth of Small and Medium Enterprises in Sri Lanka," Int. J. Adv. Res., vol. 5, no. 2, pp. 1805–1814, 2017, doi: 10.21474/ijar01/3345.
  18. V. N. Xuan, N. T. P. Thu, and N. T. Anh, "Factors Affecting the Business Performance of Enterprises: Evidence at Vietnam Small and Medium-Sized Enterprises," Management Science Letters, vol. 10, no. 4, pp. 865–870, 2020, doi: 10.5267/j.msl.2019.10.010.
  19. E. N. A. Amarteifio and S. Agbeblewu, "Level of Education, Business Experience and Small and Medium Enterprise Performance in the Accra Metropolis of Ghana," International Journal of Multidisciplinary and Current Research, vol. 5, no. December, pp. 1460–1466, 2017.
  20. I. I. Abdullahi and C. Sulaiman, "The Determinants of Small and Medium-Sized Enterprises Performance in Nigeria," Advances in Economics and Business, vol. 3, no. 5, pp. 184–189, 2015, doi: 10.13189/aeb.2015.030504.
  21. T. Anggraeni, R. Hurriyati, P. D. Dirgantari, and D. Sukmayana, "Effect of Education Level, Gender Role, and Information Technology on MSME Income in the Era of COVID-19 (Case Study on Food MSMEs in Bandung City)," J. Hum. Soc. Stud., vol. 6, no. 1, pp. 109–114, Mar. 2022, doi: 10.33751/jhss.v6i1.5376.
  22. H. Karadag, "The Impact of Industry, Firm Age and Education Level on Financial Management Performance in Small and Medium-Sized Enterprises (SMEs): Evidence from Turkey," J. Entrep. Emerg. Econ., vol. 9, no. 3, pp. 300–314, Sep. 2017, doi: 10.1108/JEEE-09-2016-0037.