Reducing Poverty Throughout Improving Business Performance of SMEs Alit Merthayasa (a*), Anwar Sanusi (b), Grahita Chandrarin (b)
Universitas Merdeka Malang
Abstract
The Special Region of Yogyakarta Province (DIY), was stated as a poorest province in Java islands by National statistic board. Total number of peoples below poverty line is around 463,630 (11.49% of total population). This study aims to describe and analyze correlation of the SDG^s components related to business strategy and performance of SME^s. Sustainable Development Goals (SDG^s), conceptual was used as basic variables in improving business performance of small and medium enterprise (SME^s) in order to reduce poverty alleviation. The type of this research is explanatory research. The method of the research is quantitative method as well as structural equation model (SEM), was used. The number of samples in this study were 170 respondents of SME^s determined by structural equation model (SEM) as the method of analyzing data, which is operated by AMOS. The population are 295 SMEs. The result of this study shows that the greatest influence was stated on business operational strategy to performance of SMEs of 6,365 and the smallest effect was on SDGs economic indicators to business operational strategy of 1,022. In this case it can be stated that the sustainable development goals (SDGs) have a significant influence on business operational strategy and business performance of SMEs. For small and medium entrepreneurs in Yogyakarta, seeing SDGs as a development goal will affect their operational business strategy, especially related to economic variables in order to reduce poverty.
Keywords: Business Strategy, Poverty Alleviation, Small and Medium Enterprise (SMEs), SDGs.
Topic: Poverty Alleviation and Reducing Inequalities
