EVALUASI IMPLEMENTASI GOOD CORPORATE GOVERNANCE GUNA MENGAKSELERASI PERTUMBUHAN UMKM DI MAGELANG

Abstract

The evaluation of business governance aims to enhance effectiveness and reduce fraudulent activities through the implementation of Good Corporate Governance. Using a qualitative phenomenological approach, with both primary and secondary sources, this research investigates business governance in SMEs in Magelang through interviews with business stakeholders. Data from approximately 2,030 SMEs in Magelang were gathered, with Bakmie Seratus, Waroeng Kemboelan, and Angkringan Mamen selected as sample SMEs. These three SMEs have implemented business governance in a straightforward manner. (1) Transparency Principle: All three SMEs have implemented transparency principles regarding their income and expenses. (2) Accountability Principle: These SMEs have implemented accountability principles by assigning responsibilities according to their tasks. (3) Responsibility Principle: While these SMEs have implemented responsibility principles, further evaluation is needed for efficiency. (4) Independence Principle: The three SMEs have implemented this principle through self-ownership of capital. (5) Fairness and Equality Principle: These SMEs have implemented this principle through a flexible work system. Of particular interest is that Bakmie Seratus employs a "Pop-up Kitchen" sales system, introducing a unique aspect that could potentially lead to fraud. The purpose of this research is to understand and evaluate the implementation of Good Corporate Governance with the goal of accelerating business growth and fostering loyalty among stakeholders for sustainable business continuity.