Financial-Management-Based Development Strategy for Micro, Small, and Medium Enterprises to Support Sustainable Economic Development

Zulhelmi; Harfandi; Era Sonita; Muhammad Zaidan Hakiki

doi:10.61255/jeemba.v4i5.1684

Authors

Zulhelmi Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi, Bukittinggi, Indonesia
Harfandi Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi, Bukittinggi, Indonesia
Era Sonita Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi, Bukittinggi, Indonesia
Muhammad Zaidan Hakiki Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi, Bukittinggi, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i5.1684

Keywords:

Development Strategy, Financial Management, MSMEs, Sustainable Economic Development, SWOT Analysis

Abstract

Purpose – This study formulates a financial-management-based development strategy for Micro, Small, and Medium Enterprises (MSMEs) to support sustainable economic development in Indonesia.

Design/methodology/approach – The study adopts a qualitative descriptive design grounded in the resource-based view, dynamic-capabilities theory, and financial capability theory. Secondary data and documentary evidence were analyzed through a structured, dual-coded extraction protocol and a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis comprising Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), a TOWS matrix, and a weighted scoring procedure for ranking alternative strategies.

Finding/Results – With weaknesses and threats reverse-coded from severity ratings, the IFE (2.62) and EFE (2.58) scores indicate moderately favorable internal capabilities and external conditions, consistent with positive net internal (0.24) and external (0.15) positions that place the sector in Quadrant I. Of the four alternatives, the Strength–Opportunity (SO) strategy scored highest (3.73) and emerges as the priority strategic hypothesis, pending validation through Delphi or Analytic Hierarchy Process (AHP) procedures. The strategy is operationalized through ten interrelated actions spanning financing expansion, financial-management coaching, production and marketing capacity building, bookkeeping support, and financial-reporting oversight, each mapped to its supporting SWOT factors, implementation actors, and monitoring indicators.

Originality/Value – The study offers a theoretically grounded, financial-management-centered strategic framework whose underlying logic is transferable to other emerging-market MSME contexts. It provides guidance for financial institutions, MSME support agencies, and policymakers seeking to strengthen MSMEs as a pillar of inclusive and sustainable growth.

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