Development of Industrial Entrepreneurship in MSMEs through Production Resource Management

Intan Shaferi, Alisa Tri Nawarini, Refius Pradipta Setyanto

Abstract

Micro, small, and medium enterprises (MSMEs) advance the Indonesian economy. Being an alternative new job opportunity, MSMEs drive economic growth rate. In the Banyumas district, many MSMEs are starting, supported by government policies that are increasingly pro-MSMEs as a community economic activity to reduce poverty. Some MSMEs in Banyumas district are stuck and have difficulty developing after the COVID-19 pandemic. Many people are still hesitant about starting a business after the pandemic because many MSMEs closed during the pandemic. Lack of management capacity and inadequate technical skills caused the lack of development of MSMEs in Banyumas. Therefore, there is a need for research that looks at the comprehensive picture of the MSME industry in Banyumas district. This study aims to examine the industrial entrepreneurship model to increase MSME income industrially and the factors that influence it, including industrial entrepreneurship profile, resource variables, and innovation. The mediating variable used is production resource management. This research uses MSMEs' income variables and the factors influencing entrepreneurship and managing production resources. This study finds the novelty of production resource management as a highlight to increase the income of MSMEs. This research uses an analysis technique and the partial least squares structural equation modeling to examine the extent of the relationship among the variables. The result shows that industrial entrepreneurship and resource variables directly affect the income of MSMEs. Also, production resource management is a mediating variable for resource variables that affect MSMEs' income.

 

Keywords: MSME income, industrial entrepreneurship, resource, innovation, production resource management.

 

https://doi.org/10.55463/issn.1674-2974.51.2.7


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