THE ROLE OF THE GOVERNMENT IN STRATEGIC MANAGEMENT AND ORIENTATION OF ENTREPRENEURSHIP TO SMALL MEDIUM ENTERPRISE BUSINESS PERFORMANCE

Empowerment of Micro, Small and Medium Enterprises is very strategic because of its great potential in driving the community's economic activities, and at the same time becomes the source of income for most of the community in improving their welfare. The role of government is necessary to be able to improve the performance of these SMEs. This study aims to determine and analyze the effect of strategic management and entrepreneurial orientation on the performance of small and medium businesses, both directly and through the role of government. The population in this research are small and medium entrepreneurs in the city of Pekanbaru. The sampling technique used was accidental sampling with a total of 60 respondents. To process data that has been obtained from questionnaires and test hypotheses using Partial Least Square (PLS) analysis techniques. The results of this study indicate that strategic management strengthened by the government will have a positive and significant impact on the performance of SMEs. Meanwhile, entrepreneurial orientation, strengthened by the role of government, also has a positive and significant effect in improving the performance of SMEs. Likewise, the direct influence of strategic management and entrepreneurial orientation on the performance of SMEs. Their influence has a positive and significant effect.