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The Impact of Technology toward the Small Medium Enterprises (SMEs) Sustainability and Development

Nunik Purwaningsih, Galuh Puspita Sari

Abstract

One of potential industry sectors in Indonesia is leather industry. It has been expanding rapidly in recent years. Indonesia has potential market due to its large population. Moreover, leather goods from Indonesia are competitive among similar products from other countries. Despite the high growth, leather industries have a very few number. It is necessary to develop the sector. The number of entrepreneurs is one of indicators represent development of a country. Most leather industries in Indonesia are Small Medium Enterprises (SMEs). SMEs have essential role in economic development of a country. The study aims to investigate technological aspects applied in leather SMEs. Quantitative and PLS approach were implemented in this study. Data are obtained from respondents who are entrepreneurs in leather goods. The questionnaire consists of three parts which are company description, employee description, and employer perception to technology application in running the business. Results indicate that technology application influences SMEs in term of their sustainability and development.

Keywords: technology, entrepreneurship, SMEs, development

DOI 10.21063/ICTIS.2016.1089

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