The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia

AbstractThis study examines the effect of household interference on business returns and household economic welfare of Micro and Small Enterprises (MSEs). This study employs a quantile regression method involving 7,020 households as the sample. The data are taken from the Indonesian Family Life Surv...

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Main Authors: Ramel Yanuarta RE, Elfindri, Fajri Muharja, Donard Games
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2212498
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author Ramel Yanuarta RE
Elfindri
Fajri Muharja
Donard Games
author_facet Ramel Yanuarta RE
Elfindri
Fajri Muharja
Donard Games
author_sort Ramel Yanuarta RE
collection DOAJ
description AbstractThis study examines the effect of household interference on business returns and household economic welfare of Micro and Small Enterprises (MSEs). This study employs a quantile regression method involving 7,020 households as the sample. The data are taken from the Indonesian Family Life Survey (IFLS) in two waves (2007 and 2014) to show the returns on microbusinesses. Variables such as unpaid workers, direct consumption of business revenue, and home-based businesses affect profits and household expenditures per capita. This study shows an overlap between MSEs and household business activities in emerging economies. This is contrary to most previous studies on MSEs that have separated businesses and households, thus MSEs’ performance could not be properly defined and analyzed. Besides, most Indonesian government policies and efforts only address business activities driven by opportunity, and few accommodate business activities driven by necessity. This research can provide clear evidence to policymakers who tend to adopt a “one size fits all” approach that returns to microbusinesses should be based on household welfare effects as well. This is because microbusinesses provide a livelihood and a means to address economic vulnerabilities, not simply taking advantage of an opportunity.
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spelling doaj.art-5228b0497bd84be88ef06f12d6ac18a22024-03-12T08:30:27ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110210.1080/23311975.2023.2212498The misconceptions on MSE research in an emerging market economy: The role of household interference in IndonesiaRamel Yanuarta RE0Elfindri1Fajri Muharja2Donard Games3Department of Management, Universitas Negeri Padang, Padang, IndonesiaDepartment of Economics, Universitas Andalas, Padang, IndonesiaDepartment of Economics, Universitas Andalas, Padang, IndonesiaDepartment of Management, Universitas Andalas, Padang, IndonesiaAbstractThis study examines the effect of household interference on business returns and household economic welfare of Micro and Small Enterprises (MSEs). This study employs a quantile regression method involving 7,020 households as the sample. The data are taken from the Indonesian Family Life Survey (IFLS) in two waves (2007 and 2014) to show the returns on microbusinesses. Variables such as unpaid workers, direct consumption of business revenue, and home-based businesses affect profits and household expenditures per capita. This study shows an overlap between MSEs and household business activities in emerging economies. This is contrary to most previous studies on MSEs that have separated businesses and households, thus MSEs’ performance could not be properly defined and analyzed. Besides, most Indonesian government policies and efforts only address business activities driven by opportunity, and few accommodate business activities driven by necessity. This research can provide clear evidence to policymakers who tend to adopt a “one size fits all” approach that returns to microbusinesses should be based on household welfare effects as well. This is because microbusinesses provide a livelihood and a means to address economic vulnerabilities, not simply taking advantage of an opportunity.https://www.tandfonline.com/doi/10.1080/23311975.2023.2212498micro and small enterprisesreturneconomic welfarehousehold interferencethe Indonesian family life surveyquantile regression
spellingShingle Ramel Yanuarta RE
Elfindri
Fajri Muharja
Donard Games
The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia
Cogent Business & Management
micro and small enterprises
return
economic welfare
household interference
the Indonesian family life survey
quantile regression
title The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia
title_full The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia
title_fullStr The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia
title_full_unstemmed The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia
title_short The misconceptions on MSE research in an emerging market economy: The role of household interference in Indonesia
title_sort misconceptions on mse research in an emerging market economy the role of household interference in indonesia
topic micro and small enterprises
return
economic welfare
household interference
the Indonesian family life survey
quantile regression
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2212498
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