The Influence of Structure, Resources, Disposition and Communication on Small- and Medium-Sized Enterprises’ Empowerment Policy Implementation in Indonesia

For more than a decade, the government has implemented several policies by allocating resources and providing program assistances for small- and medium-sized enterprises (SMEs) in Indonesia. However, the results have not reached the expected goals. This study aims at investigating the influence and contribution of bureaucratic structure, resources, disposition, and communication toward the small- and medium-sized enterprises’ empowerment policy implementation in Indonesia. This study is an explanatory research. The population of this study is all food-sector SMEs owned and managed directly by their owners and registered with KOPERINDAG Agency of Gorontalo province; based on several criteria, 96 SMEs were selected as samples. The data were collected in one short study crosssectionally through questionnaire and selected by purposive sampling. The data were analyzed using Second Order Partial Least Square (PLS) to test the model. The results showed that four variables influence the implementation of the empowerment policy of micro, small and medium businesses in Indonesia. Based on the empirical facts, a ground-breaking finding pointed out to nine important aspects which determine government policy. Those nine aspects are creating conducive business climate, capital assistances, business protection, partnership development, training, establishment of a specific institution, strengthening the association, developing promotion, and developing equal cooperation.