Track: Entrepreneurship

Abstract

Competitiveness needs to be improved to strengthen the entrepreneurial aspect in a region. Previous research indicates that entrepreneurs' characteristics, enterprise characteristics, networks, and the business environment influence the competitiveness of  MSMEs. This study applies quantitative methods to determine the influence of these factors on increasing the competitiveness of MSMEs in Malang City, proposing a competitiveness improvement model for MSMEs in Malang City and revealing the obstacles that hinder MSMEs competitiveness improvement in Malang City. The result of this study showed that entrepreneurs' characteristics and the business environment have a significant influence on increasing the competitiveness of MSMEs related to business growth performance. However, research findings also showed that enterprise characteristics and networks have no significant influence on increasing the competitiveness of MSMEs. Based on the research findings, the competitiveness of MSMEs can be increased by strengthening entrepreneurs' characters, creating a conducive external business environment, strengthening operational and marketing activities. In addition, the obstacles faced by MSMEs in increasing their competitiveness relate to marketing and production activities, financial strength, entrepreneur's characteristics, and the external environment. The results of this study provide contributions and recommendations for model implementation to increase the competitiveness of MSMEs to strengthen the entrepreneurial aspect in Malang City.