Internal and External Factors Influencing Financial Performance in Improving Competitiveness of Small and Medium Enterprises in Jayapura City

This study aims to identify and analyze the direct influence of internal factors (consisting of: Human Resource Management, Production, Marketing, Working Capital, Organization) and External Factors (which are Government Policy and competitors) on Financial Performance of Small and Medium Enterprises in Jayapura city. Data collecting method data are observation, interviews, and questionnaire. Data were analyzed using analysis of SEM (Structural Equation Modeling), with Amos Software. Results show that internal factor like human resource management does not affect the financial performance of Small and Medium Enterprises in Jayapura city, while the internal factors of production, marketing, working capital, organizational influence the financial performance of Small and Medium Enterprises in Jayapura city. The analysis also showed that the internal factors of human resource management, production, marketing, working capital and organizational influence on the competitiveness of Small and Medium Enterprises in the city of Jayapura. External factors which consist of: government policies and competitors affect the financial performance and competitiveness of small and medium enterprises businesses in the city of Jayapura. Financial performance affects the competitiveness of Small and Medium Enterprises in Jayapura city