The Influence of Learning Orientation and Entrepreneurial Orientation Toward MSMEs Performance (Case Study: Embroidery and Needlework in West Sumatera)

Many nations, particularly developing countries, have recognized the value of micro small and medium-sized enterprises (MSMEs). MSMEs play a role in enhancing a country's economic growth (Venesaar and Loomets 2006; Jeswal, 2012). The characteristics of a dynamic, innovative and efficient MSMEs, able to deal with the dynamics of the environment so MSMEs will be able to survive in a difficult situation (Miller, 1983). In Indonesia, MSMEs have significant role on employment and economic growth. MSMEs have contribution to economy include creation of wealth, employment, and income generation, both in rural and urban areas, thus, ensuring a more equitable income distribution (Soriano, E. M, 2012). They also provide the economy with a continuous supply of ideas, skills, and innovations necessary to promote competition and the efficient allocation of scarce resource (Soriano, E. M, 2012). In the last five years, the MSMEs sector accounted for about 99.6% of the registered businesses in the country by which 63% of the labor force earn a living. Around 35.7% of the total sales and value added in the manufacturing come from MSMEs as well (Department of Trade and Industry)