Reporting the Performance of Micro, Small, and Medium Enterprises: Evidence from Mahakam Ulu, Indonesia

Abstract

This study aims to identify the profile of MSMEs based on five categories: (1) production/industrial MSMEs, (2) trading MSMEs, (3) service MSMEs, (4) agribusiness MSMEs, and (5) creative/digital MSMEs. Additionally, the factors influencing MSME performance are analyzed. To maximize outcomes, the study also investigates factors beyond established boundaries that may affect the success or failure of MSMEs. The research methodology employs a descriptive-qualitative approach, utilizing interviews, observations, documentation, and literature reviews. The study found that among the twenty-five MSMEs examined in Mahakam Ulu Regency, the majority were owned by individuals of productive age, with most operating in the agribusiness and trade sectors on a micro to medium scale. Furthermore, most business capital was sourced from financial institutions such as credit unions. Factors influencing MSME performance include the owners’ educational background, adoption of technology (including digital payment systems and social media), and access to infrastructure, distribution channels, and regulations. Also, challenges and opportunities for MSME performance are shaped by local consumer preferences, geographical limitations, and limited banking involvement as a source of capital. The findings of this study are expected to serve as sustainable targets for stakeholders focusing on a locally wise economy.