IMPLEMENTATION OF MSMES BUDGET PLANNING: EVIDENCE FROM TRENGGALEK REGENCY INDONESIA

Abstract

Micro, Small, and Medium Enterprises (MSMEs) have an important role in the movement of economic
growth in Indonesia. As a business actor, it is important to focus on how to get maximum profit by looking
at financial performance. One way to produce good performance for MSMEs is to know how to make
good and correct budget planning. The budget has many functions such as for business planning, decision
making, control, communication, and business performance assessment. This study aims to analyze
whether MSMEs in Trenggalek Regency have implemented budget planning in their businesses. The
research method this time is to conduct a qualitative approach using interviews, observations, and direct
documentation of 30 MSME owners in Trenggalek Regency who are engaged in the most dominant sector,
namely the beverage and food sector of the beverage and food industry in order to obtain real
information according to the field. The results of the study showed that more than half of MSME business
owners from a total of 30 research objects still have not carried out budget planning properly. This shows
that the implementation of budget planning for MSME actors in Trenggalek Regency is still unevenly
distributed.