What contributes to micro, small, and medium enterprises’ productivity in fisheries sector in Aceh, Indonesia?

Although Micro, Small, and Medium Enterprises (MSMEs) engaged in the agricultural, livestock, forestry, and fishery sector was recorded as the second-largest contributor to the Indonesian economy in the last decade, but their productivity level was relatively low due to their small-scale business entity. To further enhance their contribution to the national economy, MSMEs needs to enhance their productivity. This study measures Total Factor Productivity (TFP) of the MSMEs in the fisheries sector across 23 districts/cities in Aceh province, Indonesia over the period from 2015 to 2019 period. The study also decomposes the TFP into its sources. Using Data Envelopment Analysis (DEA), the study documented a low level of MSMEs' TFP during the study period. The MSMEs experienced different levels of TFP. Overall, the MSMEs experienced a decline in their TFP level, contributed mainly by the deteriorations in the efficiency and technical efficiency levels. These findings indicated the urgent call for adopting advanced fisheries-related technologies and implementing good MSMEs' governance practices to further promote MSMEs' performance. Finally, the relevant government authorities are suggested to prioritize promoting less productive MSMEs in the province by providing adequate financial assistance and conducting regular professional entrepreneurial workshops, short courses, and training programs