Proceeding of the First International Graduate Conference (IGC) On Innovation, Creativity, Digital, & Technopreneurship for Sustainable Development in Conjunction with The 6th Roundtable for Indonesian Entrepreneurship Educators 2018 Universitas Syiah Kuala October, 3-5, 2018 Banda Aceh, Indonesia

Research Article

How Big is The Role of Micro Small Enterprises (MSEs) and Medium-Large Enterprises (MLEs) in Overcoming Community Income Gaps in Aceh Province ?: Data Analysis of 2016 Economic Census

Download257 downloads
  • @INPROCEEDINGS{10.4108/eai.3-10-2018.2284388,
        author={Ishak Hasan and Azwar Azwar and M. Shabri Abd. Majid},
        title={How Big is The Role of Micro Small Enterprises (MSEs) and Medium-Large Enterprises (MLEs) in Overcoming Community Income Gaps in Aceh Province ?: Data Analysis of 2016 Economic Census},
        proceedings={Proceeding of the First International Graduate Conference (IGC) On Innovation, Creativity, Digital, \& Technopreneurship for Sustainable Development in Conjunction with The 6th Roundtable for Indonesian Entrepreneurship Educators 2018 Universitas Syiah Kuala October, 3-5, 2018 Banda Aceh, Indonesia},
        publisher={EAI},
        proceedings_a={IGC},
        year={2019},
        month={5},
        keywords={micro small enterprises medium large enterprises gini ratio},
        doi={10.4108/eai.3-10-2018.2284388}
    }
    
  • Ishak Hasan
    Azwar Azwar
    M. Shabri Abd. Majid
    Year: 2019
    How Big is The Role of Micro Small Enterprises (MSEs) and Medium-Large Enterprises (MLEs) in Overcoming Community Income Gaps in Aceh Province ?: Data Analysis of 2016 Economic Census
    IGC
    EAI
    DOI: 10.4108/eai.3-10-2018.2284388
Ishak Hasan1,*, Azwar Azwar2, M. Shabri Abd. Majid2
  • 1: Lecturer in Teuku Umar University and Syiah Kuala University, Aceh
  • 2: Head Section of Cross-Sectoral Statistical Analysis Statistic Center of Aceh Province
*Contact email: ishakhasan20@yahoo.com

Abstract

This study aims to analyze the role of Micro Small Enterprises (MSEs) and Medium-Large Enterprises (MLEs) in addressing income inequality in all districts/cities in Aceh Province and also analyze the most dominant variables that reduce the community income gap. The results showed that the number of MSEs units, the average MSEsworkers, the total wages received by the SMEs workers, the SMEs wage average, and the district/city economic growth in 2016 had a significant effect on the income inequality in the districts/cities of Aceh Province. While the number of MSEs workers, the number of MLEs units, the number of MLEs workers, the average of MLEs workers, the total wages of MLEs workers, and the average wage of MLEsworkers have not significantly influence to the community income gap. The only factor that has a significant influence in reducing the gap in community income is the total remuneration (wages) received by MSEs workers. The recommendation that can be given to be implemented immediately for the Aceh government is to strengthen MSEs, including cooperatives as the drivers of the Aceh's economic which can absorb more labor and compensation or wages received by workers also increases. Furthermore, the Government of Aceh, in this case, the Provincial Manpower Office and the Office that manages labors all districts/cities must monitor the application of the Provincial Minimum Wage (PMW) for MSEs which have been under-emphasized for various reasons and consider