Supporting SDGs for Increase of the MSMEs Industry – A Prediction Using Correlation

Abstract

The capacity of MSMEs in encouraging the Indonesian economy is undoubtedly after the economic recession caused by the monetary crisis in 1998. Therefore, we try to analyze the achievement of SGDs for the 2011-2019 period in relation to supporting MSMEs from the financial dimension. Several steps evaluate these actual conditions in the quantitative method. The relationship between total credit, value-added, and financial services is measured through parametric correlation and non-parametric correlation. Overall exploration shows a strong and positive relationship between total credit, value-added, and financial services, which are components of the 8th pillar of the SDGs. These findings, offer an important idea through a scheme to revitalize the financial aspects to make it easier for MSMEs and important as an effort to encourage MSMEs to have a maximum bargaining position. The novelty of this study with topics that apply to business development, especially from the principles of SDGs, is consistent with advancing MSMEs in Indonesia.