Identifying Influential Indonesian SMEs Scaling-up Factors: AHP Quantified

Abstract

Indonesian government through the Ministry of Cooperatives and Small- Medium Enterprises (KEMENKOPUKM) has targeted 6% of MSMEs to be scale-up in the next five years. Despite the existing regulation of Law No. 20, year 2008 about MSMEs classification, there are no specific indicators for measuring scaled-up SMEs. The government is still under review of internal insights towards SMEs scaling up indicators from stakeholders of cross-field sectors. There are several research toward SMEs performance and growth parameters. Nonetheless, each study has its own version of the most influential indicators. This study has gathered the prior research and quantifying indicators that have impacted scaled-up the most using analytical hierarchy process (AHP). It results the most influential factor to the least one as follows: innovation (21.6%), productivity (20.7%), financial (19.9%), human capital and workforce composition (14.0%), global market (13.2%), and age of company (10.1%).