The Influence of Micro and Small Enterprises (MSEs) on Poverty Reduction in Indonesia 2015-2019

Abstract

One approach in poverty reduction is through microfinance, as a flexible financing. The small people's economy which is synonymous with Micro and Small Enterprises (MSEs) is a big influence on economic growth in Indonesia. MSESs contribute greatly to employment in Indonesia by 97% of the total workforce and the largest contributor to GDP at 61.97% or equivalent to8,573.89 trillion rupiah.This study uses secondary data from 34 provinces using the following methods: 2 PLS regression which is a linear regression technique between the predictor variable X which is multivariate and the response variable Y to see the effect of MSEs and GDP on poverty and the effect of Poverty and MSEs on GDP per capita in Indonesia. . The end of this study in order to see the effect on the existence of GDP in Indonesia which is influenced by the number of MSESs on the current level of poverty, using the Granger method to look at 2 directions from the study