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Table 1 Key characteristics of MIEs, SEs, and MEs

From: Recent evidence of the development of micro, small and medium enterprises in Indonesia

No Aspect MIEs SEs MEs
1 Formality Degree of informality is high (most are operated in the informal sector). Degree of informality is lower (many are operated in the formal sector) All are operated in the formal sector.
2 Organisation & management Primitive/traditional Many are non-primitive units with modern management systems All have formal organisational structure with modern management systems
3 Workers used Most are family businesses; they use unpaid family members as workers/helpers Many use wage-paid employees All use wage-paid employees
4 Production process Traditional/manually Many are highly mechanised Degree of automation is much higher
5 Market orientation Most are very local oriented; served local low income households Local, national and/or export National and/or export
6 Economic & social profile of the owner Non−/low educated and poor Many are well educated and from non-poor families Most are well-educated and from medium to high-income families.
7 Technoloy used In general, they use ‘out of date’ machines or manually and do not utilise information technology (IT) Many use machines and utilise IT. Degree of modern technology used is much higher and all utilise IT.
8 Owner/entrepreneur by gender Many MIEs are owned/managed by women Less women are involved as owners/entrepreneurs Very few women as owners/entrepreneurs
9 Reason/motivation to run own business In general to survive Mostly for profit All for profit
10 Spirit of entrepre- neurship In general low Mostly high All high
  1. Sources: BI & LPPI (2015), Narayanan (2016),Tambunan (2017)