INTERNAL AND EXTERNAL ENVIRONMENT AFFECTING MICRO SMALL AND MEDIUM ENTERPRISES BUSINESS GROWTH

Micro, small, and medium enterprises (MSMEs) play an important role as the backbone of Indonesia’s economy. In order to improve MSMEs improvement of development programs, internal and external factors that contributing to MSMEs growth needs to examine. To fill in this gap, the author using entrepreneur skills and financial literacy as internal factors, and access to finance as external factor. To understand the correlation between entrepreneurship skill, financial literacy, and access to finance towards MSMEs’ performance, the qualitative method particularly desk research approach was utilized to capture a broader perspective. The results indicate entrepreneurship skills, financial literacy skills and access to finance has positive correlation to improve MSMEs growth. This implies by improving entrepreneurship skills, financial literacy and access to finance will enable MSMEs to have unique advantages to compete in the market and sustain their business.