2.3 Definition of Small and Medium Enterprises in Indonesia
Defining the term of Small and Medium Businesses is sometimes controversial and arguable (Street and Meister,
[34]). There are various ways to determine the definition of SME and differ across countries. Therefore, the ideal
im of the study (Nooteboom, [35]). SMEs are
categorized based on the classification from Indonesian Small Medium Enterprises Organization (DEPKOP) and
The Central Bureau of Statistics (CBS) in Indonesia (DEPKOP, [26]; Kartiwi, [14]) (Table 1). The different
classification of Indonesian SMEs is depictured in the size of employee; where in small firms in Indonesia has 5-19
employees compared to most part of Europe with 5-50 employees (Nooteboom, [35]).