Reducing Poverty Throughout Improving Business Performance of SMEs
Alit Merthayasa (a*), Anwar Sanusi (b), Grahita Chandrarin (b)

a) Universitas Merdeka Malang, Post Graduate Student
*) alitmerthayasa2009[at]gmail.com
b) Universitas Merdeka Malang, Teachers

Abstract

The Special Region of Yogyakarta Province (DIY) was stated as the poorest province in Java islands by the National statistic. The total number of people below the poverty line is around 463,630 (11.49% of the total population). This study aims to describe and analyze the correlation of the SDGs components related to business strategy and performance of SMEs. Sustainable Development Goals (SDGs), conceptual were used as essential variables in improving the business performance of small and medium enterprises (SMEs) to reduce poverty alleviation. The type of this research is explanatory research. The method of the research quantitative method as well as structural equation model (SEM), was used. The number of samples in this study was 170 respondents of SMEs determined by structural equation model (SEM) as the method of analyzing data, which is operated by AMOS. The population is 295 SMEs. The result of this study shows that the most significant influence was stated on business operational strategy to performance of SMEs of 6,365 and the most minor 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 the 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 to reduce poverty.

Keywords: Business Performance, Business Strategy, Poverty Alleviation, Small and Medium Enterprise (SMEs), SDGs

Topic: Poverty Alleviation and Reducing Inequalities