STUDI KERUANGAN PERTUMBUHAN SEKTOR INDUSTRI KECIL DAN MENENGAH KABUPATEN BANGKALAN

Abstract

The regional economic largely driven by the industrial sector of small and medium enterprises (SME), although it has not been supported yet by large capital. The effort to develop the SME sector businesses, it is important to conduct some reviews, such as by conducting a spatial study to find the convergence distribution of SME. This research is intended to determine the potential and growth of SME sector in Bangkalan, to reveal the convergence distribution of SME based on the type of industry and the last one is to determine the factors that influence the growth of SME sector. This research applies descriptive, balassa index and OLS method. The result of this research shows Bangkalan has a high potency and growth of SME with a distribution convergence in the sector of food, beverages and tobacco. The growth of SME in Bangkalan is influenced by capital, the distance to the economic centers and how long the bussiness has been held. Based on this research, it is necessary to expand the development of SME which covers all area in Bangkalan. Moreover, food, beverages and tobacco sector need more attention from regulators and stakeholders because they can absorb many labors. Finally, it is necessary to strengthen the capital and also provide an appropriate access from each district to the economic center.