Enhancing Accounting Use in MSMEs through Experience, Knowledge, and Education

This study aims This study aims to examine how labor absorption in the Micro, Small, and Medium Enterprises (MSME) sector in West Java Province is influenced by Gross Regional Domestic Product (GRDP), Average Years of Schooling (AYS), and the Regency/City Minimum Wage (RCMW) between 2018 and 2022. A multiple regression analysis was employed as the quantitative method of analysis in this research.The findings reveal that the RCMW significantly enhances labor absorption in the MSME sector. Although some MSMEs face challenges in adjusting to the rising wage costs, the increase in minimum wages ultimately benefits workers’ welfare and makes the MSME sector more attractive to employers. Moreover, AYS also has a significant positive impact on labor absorption. Higher education levels among the workforce contribute to improved productivity and enable MSMEs to expand their staff capacity.In contrast, GRDP demonstrates a significant negative impact on labor absorption in the MSME sector. The growth in regional income, predominantly driven by large-scale industrial sectors, tends to favor capital-intensive industries over labor-intensive MSMEs.This study underscores the importance of inclusive policies to support MSMEs. These policies may include adjusting minimum wages in alignment with the region’s economic capacity, expanding access to education and training programs, and enhancing MSMEs’ capacity development. In doing so, the MSME sector is expected to grow sustainably, increase labor absorption, and make a substantial contribution to the economy of West Java Province.

This research aims to analyze the factors in the implementation of the financial statements at MSMEs in the Pontianak City. This research was conducted because of the increasing number of Micro, Small, Medium Enterprises in Pontianak. In line with the term, the entrepreneurs experienced problems in the financial administration process. The main problem related to the preparation of financial statements has not been implemented by business people in the MSME sector and tends to do very simple records and certainly not in accordance with accounting standards. The subjects in this research are Micro, Small and Medium Enterprises (MSMEs) in Pontianak City and the respondents involved are entrepreneurs. The sampling technique is simple random sampling with a quantitative approach. Data processing and analysis techniques use data quality test, classic assumption test and multiple regression. This research shows the results that the independent variables X1, X3, X4 (education level, accounting understanding, and business scale) partially have a significant influence with a positive direction on the implementation of the financial statement recording of the MSMEs sector. While the independent variable X2 is accounting training was not proven to have an effect. Simultaneously there is an influence of the four independent variables on the dependent variable.

The Micro, Small and Medium enterprises (MSMEs) today constitute a very important segment of the Indian economy. The growth of this sector came about largely due to the vision of Government policies framed right after Indian Independence. MSME sector has emerged as an energetic and vibrant sector of the economy. As per the fourth census of MSMEs report published in 2012, the total numbers of MSMEs in India are 36 million employing over 80 million people. It is the second largest employer after agriculture accounting for 72% services and 28% manufacturing jobs. It also accounts for 45 % of total industrial production, 40% of total exports and contributes very significantly to the GDP. Manufacturing segment within the MSME contributes to 7.09% of GDP. The benefits of MSMEs have created a special status and importance in the Five-Year Plans right from its inception. In recent years, the MSME sector has consistent higher growth rate compared to the overall industrial sector. Despite its commendable contribution to the country's economy, MSME Sector is not getting the required support and faces numerous dilemmas. This is a research paper which aims at developing a framework taking into account efficient demand marketing and innovation strategy performances. The paper also presents the results of the pilot study undertaken.

PurposeThe primary aim of this research is to conduct a comprehensive investigation into the essential elements of Industry 4.0 implementation within Indian Micro, Small and Medium Enterprises (MSMEs). Acknowledging the MSME sector as a crucial contributor to the Indian economy and industrial development, the study delves into the assessment of MSMEs based on Industry 4.0 components. Additionally, it explores the profound impact of these components on various performance factors, including organizational performance, sustainability performance and human-related aspects. The paper further ranks these identified components based on their significance within the MSME sector.Design/methodology/approachEmploying a combination of methodological approaches, the research utilizes the Best and Worst Method (BWM), Data Envelopment Analysis (DEA) and calculates the Maturity Index for Industry 4.0 components. The BWM, a recognized multi-criteria decision-making technique, is initially applied to determine the weights and rankings of the identified components. Furthermore, the study evaluates 30 MSMEs, spanning manufacturing and service sectors, through the DEA approach. Industry 4.0 components are treated as inputs, and performance factors serve as outputs. Data for the analysis are collected through questionnaires distributed to the selected MSMEs. Lastly, the Maturity Index for MSMEs is also calculated.FindingsFrom the result of the BWM method “assistive manufacturing” was found to be a highly weighted key component of Industry 4.0. From the DEA analysis out of 30 MSMEs 13 SMEs were highlighted as being efficient, whereas 17 MSMEs were judged to be inefficient. Furthermore, from the maturity index calculation, overall Maturity Index was determined to be 3.33 which shows that Industry 4.0 is in its initial stage of implementation, but it has gained pace in its implementation.Practical implicationsThe research contributes to practical implications by offering a more accurate assessment of the state of Industry 4.0 implementation within MSMEs. The introduced maturity index proves instrumental in pinpointing key components that have received inadequate attention. This information is crucial for MSME managers and policymakers, guiding them in allocating resources effectively, addressing areas requiring attention and facilitating progress in the implementation of Industry 4.0. The study serves as a valuable tool for MSMEs to enhance their overall operational efficiency.Originality/valueThe research’s originality lies in its application of a comprehensive approach, combining BWM, DEA and the introduction of a maturity index for Industry 4.0 components in the MSME context. By employing these methodologies, the study not only identifies influential components but also provides a nuanced understanding of their relative significance. The research contributes significantly to the broader understanding of Industry 4.0 adoption, particularly, in the vital MSME sector within the Indian context. The findings are valuable for researchers, practitioners and policymakers seeking insights into improving the efficiency and effectiveness of MSMEs in the era of Industry 4.0.

This study explores the impact of fintech payment and e-commerce adoption on the performance of Micro, Small, and Medium Enterprises (MSMEs), focusing on the moderating role of the cashless society. Using a quantitative approach, data were collected from MSMEs operating in Central Java to examine how digital financial solutions influence business performance. The findings reveal that fintech payment adoption enhances MSME performance by improving transaction efficiency, financial management, and access to a broader market. However, e-commerce adoption does not directly affect MSME performance, which may be attributed to challenges such as technological readiness, digital literacy, and infrastructure limitations. The cashless society strengthens the impact of fintech payments on MSME performance, indicating that the shift toward digital transactions provides competitive advantages for MSMEs. However, its role in moderating the effect of e-commerce on MSME performance remains limited, suggesting that successful e-commerce adoption requires additional supporting factors. These findings underscore the importance of digital payment integration for MSMEs and highlight the need for financial literacy programs, digital mentoring, and infrastructure development to support MSMEs in adapting to an increasingly digital economy. This study provides valuable insights for policymakers, financial institutions, and MSME stakeholders in shaping strategies to enhance digital transformation and financial inclusion in the MSME sector.

Research aims: This study aims to investigate the influence of Human Resource Management (HRM) practices on employee performance, with job satisfaction serving as a mediating variable, within the context of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia.Design/Methodology/Approach: Data were collected using structured questionnaires distributed to owners and employees of MSMEs in Indonesia. The sampling technique used was purposive sampling, resulting in a total of 130 valid responses. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS 4 software.Research findings: The results of the study indicate that HRM practices have a positive and significant effect on employee performance. Furthermore, job satisfaction significantly mediates the relationship between HRM practices and employee performance. These findings suggest that enhancing HRM practices can increase employee job satisfaction, which in turn leads to improved performance.Theoretical Contribution/Originality: The findings of this study can serve as a valuable reference for policymakers in designing programs and policies that support the enhancement of HRM practices within the MSME sector. Strengthening HRM practices can contribute to increased employee satisfaction and performance, which in turn promotes the overall growth and competitiveness of MSMEs in Indonesia.Practitioners/Policy Implications: The practical implication of this study highlights the importance for MSME managers to implement effective HR strategies aimed at enhancing employee job satisfaction. By prioritizing well-structured HR practices, MSME managers can foster a more motivated and productive workforce, thereby improving overall organizational outcomes.Research Limitations/Implications: This study focuses primarily on HRM practices and job satisfaction as the main variables influencing employee performance. However, it acknowledges that employee performance is also affected by other important factors, which were not examined in this research. Future studies are encouraged to explore these additional variables to provide a more comprehensive understanding of the determinants of employee performance within the MSME sector.

The importance of Micro, Small and Medium Enterprise (MSME) has been recognised in recent years in both developed and developing countries for its significant contribution in gratifying various socio-economic objectives such as a higher growth of employment, promotion of exports and fostering entrepreneurship. The MSME sector is an important pillar of Indian economyas it contributes greatlyto the growth ofeconomywith a vast network of around 30 million units, creating employment of about 70 million, manufacturing more than 6000 products, contributing about 45% to manufacturing output and about 40% of exports, directly and indirectly. This sector even assumes greater importance now as the country moves towards a faster and inclusive growth agenda. Moreover, it is the MSME sector which can help realise the target of proposed National Manufacturing Policy of raising the share of the manufacturing sector in the gross domestic product from 16% at present to 25% by the end of 2022. The present paper is an attempt to focus the present status of the performance of MSMEs in India and Odisha in particular in terms of employment generation, number of units and capital formations. It also highlights the major challenges for the growth of MSMEs and initiatives taken to solve the constraints both at the government and institutional levels.

Purpose:The purpose ofthe study is toexamineaccess toinstitutionalfinancefor Micro, Small and Medium Enterprises (MSMEs) in India, with special emphasis on the role played by commercial banks in facilitating credit availability. Methodology:The study adopts a descriptive research design based on secondary datacollected from Reserve Bank of India reports, Ministry of MSME publications, World Bank reports, and relevant research literature. Data are analysed using tables,percentages, and graphical tools. Findings:The study finds that commercial banks have significantly increased institutionalcredit to MSMEs, supported by policy initiatives such as priority sector lending and credit guarantee schemes. However, MSMEs continue to face challenges such as collateral requirements, procedural complexities, and limited financial literacy. Limitations:The study is limited to secondary data and focuses only on commercial banks, excluding NBFCs and informal sources of finance. Implications:The findings provide useful insights for policymakers, bankers, and MSME stakeholders to strengthen institutional credit mechanisms, simplify lending procedures, and enhance financial inclusion in the MSME sector.

Advances in digital technology in the financial sector have encouraged Micro, Small, and Medium Enterprises (MSMEs) to shift from cash payment systems to non-cash payments through QRIS (Quick Response Code Indonesian Standard) as an effort to increase efficiency and modernize transactions. This research is motivated by the low level of QRIS adoption among MSMEs in Junti Village, Jawilan District, Serang Regency, Banten, most of which still rely on cash-based transactions. The purpose of this research is to analyze the implementation of QRIS by MSMEs, identify the obstacles faced, and assess the impact of the system's implementation on daily business activities. Data were collected through field observations, interviews with MSME actors, and supporting documentation, and this research was conducted in Junti Village in July 2025. The results revealed that some MSMEs that have adopted QRIS experienced benefits in the form of ease in conducting transactions, increased efficiency, and a more professional business image. These findings also confirm that the use of QRIS contributes to the acceleration of digital transformation in the MSME sector, although not yet fully optimal. The main obstacles encountered were limited access and the quality of internet infrastructure, which is still uneven, making it difficult for some business actors to utilize QRIS optimally. Based on these results, the study recommends the importance of increasing the intensity of socialization and training on QRIS use, as well as the need for ongoing support from local governments and financial institutions so that MSMEs can adapt more quickly and comprehensively to changes in digital technology, so that MSME digital transformation can take place effectively, inclusively, and sustainably. This study recommends the need for increased socialization, training, and support from financial institutions and local governments to encourage sustainable digital transformation of MSMEs.

The Micro, Small, and Medium Enterprises (MSME) sector in India plays a crucial role in driving employment opportunities and economic growth. Although most MSMEs are unregistered, they contribute 45 per cent to industrial output and 40 per cent to overall exports. These enterprises have been instrumental in industrializing rural and backward areas, reducing regional imbalances, and promoting equitable distribution of national income and wealth. However, the MSME sector faces several challenges and requires support to capitalize on opportunities in the rapidly evolving global markets. Consultancy services can aid MSMEs in enhancing their competencies in areas such as marketing, finance, business development, operations, and technology. The success of MSMEs is pivotal to rural and regional development, making them a vital component of the economy.
 A substantial number of Indian MSMEs rely on self-funding due to limited financing opportunities, especially for micro-enterprises, which comprise nearly 95% of all MSMEs. Late payments by larger enterprises often pose challenges for MSMEs in managing their receivables. The Factoring Regulation Act of 2011 presents a potential solution, expected to boost the factoring industry in India. Factoring services offer advantages such as open account facilities and increased credit limits as sales grow. To support MSMEs, financial institutions in India should be more proactive in providing finance against factored receivables.

Micro, Small, and Medium Enterprises (MSMEs) play an important role in the national economy. MSMEs are a populist economic system that can help alleviate poverty, and their growth has the potential to expand the economic base and contribute significantly to improving the regional economy and national resilience. The large number of MSMEs can become government partners in resource management. The MSME development strategy focuses on the agricultural sector in Karawang Regency. The success or failure of government policies in advancing MSMEs in the agricultural sector in Karawang Regency depends heavily on leadership, work commitment, and service quality. No company can develop or operate well until MSME participants provide exceptional service quality, work commitment, and service leadership. Therefore, it is important to address service problems in the MSME sector, especially in the agricultural sector in Karawang Regency. The main objective of this study is to empirically investigate the impact of servant leadership and work dedication on service quality. Data were collected using an online survey distributed to 259 SMEs in the agricultural industry in Karawang Regency, Indonesia. Data were evaluated using SEM. Hypotheses were assessed directly and jointly using two-step Partial Least Squares (PLS) path modelling. Based on the research findings, servant leadership had a higher influence value of 30.5% in influencing service quality than work commitment, which had a value of 22.4%. Mediation testing using the Sobel test resulted in a t-statistic value of 2.33 1.96 and a one-sided p-value of 0.00 0.05. Work dedication is an effective mediating component to increase the impact of servant leadership on service quality.

Environmental, Social, and Governance (ESG) has become a stakeholder demand for companies today. However, not all companies have successfully integrated the concept into the business model and gained value. In Micro, Small, and Medium Enterprises (MSMEs), the implementation of ESG is considered insignificant. Therefore, this study aims to identify ESG practices and gain insight into MSME's understanding of ESG. Hence, it provides an initial overview of current ESG practices as part of non-financial activities in the MSME sector. This research is also expected to provide additional insight to regulators. Research data was obtained through questionnaires on ESG and analyzed according to the responses of each pillar. Enumerators then guided the questions to MSMEs in the Sub-districts of Nanggewer Mekar, Pabuaran Mekar, and Pondok Rajeg. MSMEs in these sub-districts were selected because Nanggewer Mekar, Pabuaran Mekar, and Pondok Rajeg are actively involved in the Ministry of Environment and Forestry climate village program. Results show that from the initial identification of ESG understanding in MSMEs, respondents know about climate change issues and their impact on the environment, society, and governance. However, respondents understanding varies according to the perceived benefits to their business. In addition, respondents have not implemented elements of the ESG concept systematically and holistically. Therefore, the ESG concept has not been integrated into their strategy or business model. The study is limited in scope and area. Therefore, research also might be developed into empirical research to support the recent findings. Further, this research studies MSME's initial understanding of ESG activities.

In our country, the MSME plays a major role in the economy and social development of the country. Currently, the MSME sector contributes more strength to the development of our nation. India provides various opportunities for the entrepreneur. The MSME concentrates on skill development and creates awareness among entrepreneurs. MSMEs provide various opportunities for entrepreneurs. The banking sector offers loans and training for people in need. The labour-concentrated sector helps reduce imbalances in the region. The MSME plays a major role in all types of the sector like khadi & village industries, coir industries, etc.. The entrepreneur as well as employees gain more knowledge through the MSMEs sector.. This paper is an attempt to study the opportunities and challenges faced by micro, small, and medium enterprises in the country.

Micro, Small and Medium Enterprises (MSMEs) in Bangaluru is a critical contributor to the economic escalation and employment generation. This study aims to explore the issues regarding the performance and progress of MSMEs. The study is descriptive in nature, both primary and secondary data collected and appropriate statistical tools employed to draw the inherent facts about MSMEs performance. The study divulged that the MSME sector in Bengaluru faces challenges, such as access to finance, infrastructure constraints, and regulatory compliance. MSMEs rely on traditional banking channels for financing, while few look for NBFIs because of their flexible lending criteria. The future growth and prospects of MSMEs in the services industry are promising, By embracing innovation, collaboration, sustainability, talent development, market differentiation, customer-centricity, agility, resilience, continuous improvement, adoption of emerging technologies, focus on data analytics, expansion into niche markets, and adoption of flexible business models, MSMEs can unlock their full potential and grow. With the right support, resources, and strategies, MSMEs can take advantage of the growing demand for services and emerging opportunities in the digital economy.

Digital transformation has become one of the main challenges for Micro, Small and Medium Enterprises (MSMEs) in Indonesia, especially in dealing with post-pandemic market dynamics. This study aims to analyze the digital marketing strategies implemented by MSMEs in Banda Aceh in order to increase competitiveness in the digital era. The research method used is a descriptive method with a quantitative approach. Primary data was collected through a survey of 50 MSME players who actively use digital platforms, such as social media, marketplaces, and business applications. Secondary data was obtained from related agency reports and literature studies. The results showed that the majority of MSMEs in Banda Aceh have utilized social media, such as Instagram and WhatsApp Business, as the main channel for digital marketing. The most commonly used strategies include visual promotional content, time-based discounts and direct interaction with customers. However, significant challenges remain, such as limited understanding of technology, limited marketing budgets, and low utilization of customer data for consumer behavior analysis. This study concludes that the adoption of digital marketing can significantly improve MSME competitiveness, especially in expanding market reach and increasing customer loyalty. Strategic recommendations include improving digital literacy through training, utilizing analytics tools to understand consumer behavior, and collaborating with local communities to strengthen business networks. The findings are expected to provide practical contributions for MSME players in Banda Aceh as well as a reference for policy makers in supporting digital transformation in the MSME sector.