International Conference on Vocational Business, Logistic, Accounting, Supply Chain, Tax (ICoBLAST)

Introduction/Main Objectives: SMEs as the drivers of economic growth often face growth problems, therefore it is important to assess their performance in order to know how well they have performed and what actions need to be improved to perform better in the future.

 

Background Problems: Performance measurement plays a crucial role in supporting the growth of all businesses of all sizes including Small and Medium Enterprises (SMEs). However, there is a gap between the importance of performance measurement and its practice among SMEs. This study aims to assess the performance of SMEs in Indonesia particularly the micro-businesses that benefit from the government development program.

 

Novelty: This is the first study analyzing the performance measurement of Indonesian SMEs with less structured management which also get direct benefit from the government development program using the Balanced Scorecard approach.

 

Research Methods: The method adopted is the Balanced Scorecard in combination with the SWOT analysis and ANP model. A group of SMEs is selected as a case study in this research and a set of questionnaires is used to collect data from the owner-managers. Findings/Results: The findings reveal that the performance of the SMEs is still poor especially in the area of learning and growth and internal business process perspectives. However, they show a fairly good performance concerning the customer and financial perspectives.

 

Conclusion: It can be concluded that in overall the performance of the SMEs in Indonesia is still moderate even though they get substantial support from the government.

 

Implementation Potential: It is suggested that SMEs need to improve their performance by improving the profit margin and customer base while making corrective actions in product innovation and workers’ skills and competencies. It also implies that governments must give serious attention in conducting policies and programs to foster the growth of SMEs while undertaking a continuous SMEs performance measurement.

 

Keywords: SME; performance measurement; balanced scorecard.