The Effect of External and Internal Environment on Performance and Competitiveness of Micro, Small and Medium Enterprises (MSMES) in West Nusa Tenggara

Abstract

The government has a large enough attention to the promotion and development of MSMEs. It is aimed to the improvement of community business that can reduce poverty or improve the welfare of the poor community. MSMEs development in Indonesia as long as get great attentions of the government and of the society in general. The purpose of this study was to determine the effect of external and internal environment to the performance and competitiveness of Micro, Small and Medium Enterprises (MSMEs) in West Nusa Tenggara. Population of the study are the registered MSMEs manager at the Department of Industry and Trade in West Nusa Tenggara with the characteristics of MSMEs based on the criteria in the Act of RI No. 20 of 2008 on MSMEs in article 6. This study used random sampling technique with samples of 123 MSMEs managers. The result conclusions of this study show that: (1) The external environment has effect on the performance of MSMEs in West Nusa Tenggara; (2) The external environment has non-positive influence on the competitiveness of MSMEs in the West Nusa Tenggara; (3) The internal environment has effects on the performance of MSMEs in West Nusa Tenggara; (4) The internal environment has effects on the competitiveness of MSMEs in the West Nusa Tenggara; (5) The performance of MSMEs has effect on the competitiveness of MSMEs in West Nusa Tenggara.