ABSTRACT
As the largest group of economic actors in Indonesia, Small and Medium Enterprises (SMEs) face various problems. It, for example, has limited access to get the capital. It also has difficulties in marketing products and having low management capabilities. This research aims to analyze the business performance of SMEs in Indonesia in terms of sales growth, number of workers, market share, profitability and additional assets, by exploring financial assistance provided by the government. This research used a quantitative method. The population were SMEs in Bandung, West Java, Indonesia, which got financial assistance from microfinance institutions. The sample were 150 the owners of SMEs. The sample was selected by using simple random sampling technique. The data was collected through a questionnaire. It was then analysed by using a Structural Equation Model (SEM). The results showed that sales growth had the strongest contribution to SMEs business performance. By contrast, expansion of market share had a smaller contribution to the SMEs business performance. This finding implies that SMEs have to apply marketing strategies; strengthen the capital, financial management, and management capabilities; and expand the relationship network.
