Abstract:
The performance of Micro, Small, and Medium-Sized Enterprises (MSMEs)
in Indonesia is examined in this study in relation to a number of different
influences. A quantitative examination of 255 MSMEs from various
industries, geographies, and sizes is carried out, with an emphasis on the
interplay of infrastructure, financial inclusion, innovation, and government
policy. In order to investigate the direct and intermediary links between these
important determinants and MSME performance, structural equation
modeling was employed in the study. The results revealed a strong positive
correlation between the variables, demonstrating the critical role that
government policies, infrastructure, financial inclusion, and innovation play
in fostering business success. Financial inclusion plays a mediating role, and
mediation analysis clarifies the contextual elements influencing the
connections that are seen. By providing practical insights for business
leaders and policymakers to navigate and enhance the business
environment, this research advances our understanding of the intricate
dynamics inside Indonesia's MSME sector.
