The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia

Government policies, such as subsidies and loan interest discounts, have stimulated the performance of micro, small, and medium enterprises (MSMEs). This study aims to examine the influence of government policies through subsidies on MSMEs in the creative industry by employing primary data from MSME...

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Main Authors: Zainuri Zainuri, Mohammad Zeqi Yasin, Rachmania Nurul Fitri Amijaya, Regina Niken Wilantari, Sebastiana Vipindrartin
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Economics & Finance
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Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2024.2446657
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author Zainuri Zainuri
Mohammad Zeqi Yasin
Rachmania Nurul Fitri Amijaya
Regina Niken Wilantari
Sebastiana Vipindrartin
author_facet Zainuri Zainuri
Mohammad Zeqi Yasin
Rachmania Nurul Fitri Amijaya
Regina Niken Wilantari
Sebastiana Vipindrartin
author_sort Zainuri Zainuri
collection DOAJ
description Government policies, such as subsidies and loan interest discounts, have stimulated the performance of micro, small, and medium enterprises (MSMEs). This study aims to examine the influence of government policies through subsidies on MSMEs in the creative industry by employing primary data from MSMEs in Jember Regency, East Java, Indonesia. We captured that subsidies for MSMEs will positively affect economic performance, as proxied by turnover and profit, only if incorporated into the interest rate discount program. This finding is robust from different measurement strategies, suggesting that subsidy provision as a macroeconomic policy is unreliable if applied in Silos. In addition, social capital plays a vital role in developing businesses in the creative industry. It opens new market opportunities, provides a free source of learning, and allows for collaboration that reduces the economic transaction costs of managing businesses.
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series Cogent Economics & Finance
spelling doaj-art-ce2196ce8ff74966aaaafd41469ff92f2025-08-20T02:57:29ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2024.2446657The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, IndonesiaZainuri Zainuri0Mohammad Zeqi Yasin1Rachmania Nurul Fitri Amijaya2Regina Niken Wilantari3Sebastiana Vipindrartin4Department of Economics, Faculty of Economics and Business, University of Jember, Jember, IndonesiaDepartment of Economics, Faculty of Economics and Business, University of Jember, Jember, IndonesiaDepartment of Economics, Faculty of Economics and Business, University of Jember, Jember, IndonesiaDepartment of Economics, Faculty of Economics and Business, University of Jember, Jember, IndonesiaDepartment of Economics, Faculty of Economics and Business, University of Jember, Jember, IndonesiaGovernment policies, such as subsidies and loan interest discounts, have stimulated the performance of micro, small, and medium enterprises (MSMEs). This study aims to examine the influence of government policies through subsidies on MSMEs in the creative industry by employing primary data from MSMEs in Jember Regency, East Java, Indonesia. We captured that subsidies for MSMEs will positively affect economic performance, as proxied by turnover and profit, only if incorporated into the interest rate discount program. This finding is robust from different measurement strategies, suggesting that subsidy provision as a macroeconomic policy is unreliable if applied in Silos. In addition, social capital plays a vital role in developing businesses in the creative industry. It opens new market opportunities, provides a free source of learning, and allows for collaboration that reduces the economic transaction costs of managing businesses.https://www.tandfonline.com/doi/10.1080/23322039.2024.2446657MSMEcreative industrygovernment policysocial capitalIndonesiaL26
spellingShingle Zainuri Zainuri
Mohammad Zeqi Yasin
Rachmania Nurul Fitri Amijaya
Regina Niken Wilantari
Sebastiana Vipindrartin
The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia
Cogent Economics & Finance
MSME
creative industry
government policy
social capital
Indonesia
L26
title The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia
title_full The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia
title_fullStr The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia
title_full_unstemmed The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia
title_short The role of government policy on the performance of MSMEs in the creative industry: evidence from Jember Regency, East Java, Indonesia
title_sort role of government policy on the performance of msmes in the creative industry evidence from jember regency east java indonesia
topic MSME
creative industry
government policy
social capital
Indonesia
L26
url https://www.tandfonline.com/doi/10.1080/23322039.2024.2446657
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