Implementation of the C4.5 algorithm for micro, small, and medium enterprises classification

Abstract

The coronavirus disease-19 (COVID-19) pandemic has spread to various countries including Indonesia. Thus, implementing large-scale social restrictions (Bahasa: Pembatasan Sosial Berskala Besar (PSBB)) has resulted in the paralysis of the economy in Indonesia. including micro, small, and medium enterprises (MSMEs) have decreased turnover and even went out of business. The Department of Cooperatives and Small and Medium Enterprises (SMEs) in Pesawaran Regency, Lampung, oversees 3,808 MSMEs, whose development should be monitored as a basis for determining policies. However, there are problems in classifying MSMEs according to their categories because they have to check the existing data one by one, so it takes a long time. Therefore, this study proposed the C4.5 algorithm to solve this problem. In addition, this research compared with the naïve Bayes algorithm to find out which algorithm had a good performance and is suitable for this case. The results showed that 91% of MSMEs were included in the micro category, 8% was in a small category, and 1% was in the medium category. Based on the results, it explained that the C4.5 algorithm was bigger than naïve Bayes with a difference in the value of 3.79%. It had an accuracy value of 99.2%. Meanwhile, naive Bayes was 95.41%.