The government support model on the development of smes in West Sumatera Province. Indonesia

Abstract

Small and Medium Enterprises is one of the priorities in economic development in Indonesia. West Sumatra has areas with unique creative industries based on livestock production. The development of the creative industry which has high additional value to product prices needs greater attention so that it can grow. The SMEs that are the focus are those based on creative industries, there are culinary SMEs made from beef and poultry products. This study aimed to develop a government support model to determine the factors that influence the development of SMEs, so that the factors that influence the development of SMEs can be identified. The analysis method used was partial least square-structural equation modeling (PLS-SEM). The findings of this study are government policies have a direct influence on the internal factors of SMEs, but do not have a direct effect on SMEs' performance. More intensive and more focused policies are still needed to improve the performance of SMEs.