The Use of Corporate Social Responsibility Fund in Improving Performance and Developing Micro Small Enterprises in Riau Province

Abstract

The Community Development and Partnership Program is really useful for UKM or as an effort to increase community income as a form of social responsibility of SOE towards the community, especially the people in Pekanbaru City as a place for SOE to operate. This study analyzed the role of CSR funds in the development of entrepreneurship and the performance of micro and small entrepreneurs in Riau Province as well as analyzed the indicators of CSR programs on the development of small and micro businesses in the city of Pekanbaru on changes in the business environment by using AHP analysis.

In investigating the relationship between CSR Funding (non-tax revenue fund) to MSME Revenues, the Structural Model shows that the value of Structural Coefficient was 0.089 and P 0.123> 0.05. This value indicates that the relationship between CSR Funding (non-tax revenue fund) to the income of small and micro enterprises was not significant. The high or low value of CSR Funding (non-tax revenue fund) did not directly influence the high or low value of small and micro business revenues. Based on the matrix Indicator program objectives, the indicator that became priorities in designing the program was the Development of Local Microfinance Institutions with a Value of 0.280. Then it was followed by Institutional / Group Empowerment priority with a value of 0.216. Meanwhile, the lowest indicator was Family Involvement in doing business with a value of 0.068.