Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) October 2015 Vol. 4(9), pp 346-356

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Original Research Articles

Existence of Internal and External Factors Implications to Small Scale Urban Business Performance Survey on Small Scale Agribusiness Enterprises in Palembang City Indonesia

DR. M. Syahirman Yusi

Lecturer, Department of Business Administration, State Polytechnic of Sriwijaya

Email: msyusi@gmail.com

Accepted 10 October 2015

Abstract 

Even though small-scale enterprises (SSEs) contribution to GDP is still not optimum yet, its existence has become an integral part of national business environment. Furthermore, it also had a highly potential and strategic role in expanding employment, economic service, equalization process, income enhancement, economic growth, and national stability. Though along the implementation it had met some problems both internal and external, nevertheless by having serious attention and improvement efforts from government and related instances, SSEs will still exist and grow as a strong fundament for national economic growth. Indonesian’s economic growth will improve positively if all the related actors give optimum contribution by developing a good coordination. Such actors are big scale, medium scale and last but not least small scale enterprises. The aim this study is to obtain the empirical evidence about internal and external factors in small scale urban agribusiness enterprises in Palembang City. Primary data was collected through survey technique from 200 samples, respondents taken by random sampling method and was analyzed by Two Stage Least Square (TSLS). Through  analysis showed that in agregate all of variables had a positive influence not only in first hypothesis, but also in second and third, it means all of the hypothesis were not rejected. 

Keywords: Small Scale Enterprises, Economic Growth, National Stability, Internal and External Factors.