Thus, an increase in the productivity of community economic enterprises in Makassar City will be achieved if it is supported by government policies and easy licensing for the community regarding SME development. The development of SMEs through technological innovation developing in the Makassar City community is expected to expand market reach and accelerate the process of structural transformation. This indicator is measured based on changes in the economic structure of Makassar City and the resilience of the national economy in Indonesia.
The ontological assumption here is that the government will support increases in SME productivity for the economic growth of Makassar City. Third, when the researchers entered the field, they studied the situation and conditions of SMEs developing in the community of Makassar City. Fourth, during the data collection process, researchers (i) limited themselves to the scope of the study, (ii) recorded data using field notes, (iii) collected data using a recording device, (iv) investigated conflicting situations, and (v) field analysis conducted.
The potential to develop SMEs in Makassar City is dominant in centers of economic activity in the city center and in transition areas. In order to interpret the data in question, the characteristics of SMEs developed in society are compared. Meanwhile, shift share was used to determine (1) the shift in the economic structure of Makassar City, affected by the shift in the economy of South Sulawesi Province, (2) proportional shift growth in a sector's gross value added compared to the total sectors in South Sulawesi- the province, and (3) the differential shift or competitive position showing the difference in the economic growth of Makassar City.
Explanations related to SWOT analysis (see Table2) used in this study include (1) the interaction between strength factors and opportunity factors (S–O interactions), based on the principle of “using strength to seize opportunities utilized”; (2) the interaction between power factors with threat factors (S-T interactions), based on the principle of "use of force to avoid or overcome threats"; (3) the interaction between the factors of weakness with opportunities (W–O interactions), based on the principle of "exploitation of opportunities" or "exploitation of opportunities with weaknesses";. 4) the interaction between the factors of weakness with threat factors (W–T interactions), based on the principle of "minimizing weaknesses and avoiding threats".
Results
Furthermore, increasing the economic productivity of SMEs will require an adjustment in the use of technology. Respondents' perceptions of various programs implemented by the government to support the development of SMEs are shown in Figure 4 below. Respondents' perceptions of various programs implemented by the government to support the development of SMEs are shown in Figure 4 below.
Respondents' perception of the role and support of government policies in the development of SMEs. (2) insufficient support for human resource capacity and insufficient professionalism in the management of economic enterprises; (3) a suboptimal ability to organize SMEs; and (4) an ineffective promotion of SMEs in relation to the various programs implemented by the government. This means that the implementation of government policies has not been effective in promoting the development of SMEs in Makassar City.
Some of the factors influencing this condition are as follows: (1) poor coordination between agencies in the management of SMEs; (2) insufficient support for human resource capacity and insufficient professionalism in the management of economic enterprises; (3) a sub-optimal ability to organize SMEs; and (4) an ineffective promotion of SMEs in relation to the various programs implemented by the government. This means that the implementation of government policies has not been effective in encouraging the development of SMEs in Makassar City. The responses of SMEs to the performance of programs implemented by the government are presented in Figure 5 below.
Interpretations that can be proposed regarding the performance of government programs (Figure 5) related to the development of SMEs in Makassar City are as follows:. stated that the implementation of the SME Development Program was not yet effective. Thus, the implementation of government programs to promote the development of SMEs has not been optimal in supporting increased productivity in socio-economic enterprises. This means that the role of SMEs has not played an important role in supporting the economic growth of Makassar City.
Interpretations that can be proposed regarding the performance of government programs (Figure 5) related to the development of SMEs in Makassar City are as follows that the economic empowerment of SMEs was not yet optimal;. This means that the role of SMEs has not played an important role in supporting the economic growth of Makassar City. The influence of government policies, support for business capital and strengthening of human resource capacity on the development of SMEs is presented in Table 6 below.
The existence and improvement of productivity of SMEs in Makassar City requires efforts to develop and protect their business environment. Four factors positively influence the development of SME productivity: (i) technological innovation, (ii) business diversification, (iii) product marketing and (iv) business stability.
Discussion
Increasing the productivity of SMEs in Makassar City will require policy support from the government and is expected to reduce unemployment among the working age population and play a role in economic growth. The role of SMEs is also expected to absorb labor and open profitable business opportunities. This means that the role of SMEs will be a driver of economic growth, an agent of change and a pioneer in saving the environment.
Small and medium-sized enterprises play an important role in reducing the unemployment rate of the working-age population [96]. The development of innovations necessary to support the increase in productivity of small and medium-sized enterprises is carried out through several strategic measures, namely: (1) increasing the skills, knowledge and technological mastery of SMEs;. One of the factors responsible for the failure of SMEs is the high volatility of global economic conditions [105].
Referring to the things that have been explained, efforts to increase the productivity of small and medium enterprises in Makassar city towards sustainability, economic stability and marketing of SME products will require further strategic steps regarding the diversification and expansion of business, including: first, ease of licensing, through support. This means that the government has a role in protecting the market and facilitating the marketing of SME products. This process is carried out through technological innovation, building product marketing networks and strengthening the human resources capacities of SMEs.
Fourth, open innovation through smart cities to support the development of SMEs in Makassar City towards the implementation of an environment of innovation, empowerment and participation of citizens, businesses and other stakeholders in the formation of SMEs in Makassar City. Currently, small and medium-sized enterprises (SMEs) play a leading role in most of the world's economies. These three things are an important part of increasing the productivity of SMEs in Makassar City in a sustainable way.
The role of SMEs is thus an important element as a driving force for entrepreneurship and economic development. This means that the existence of SMEs in Makassar City will require a transformation of business management and innovation strategies towards sustainable SMEs. This means that increasing the productivity of SMEs will require facility support to meet global challenges; (3) management of knowledge.
Conclusions
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