PENGARUH INSENTIF PAJAK DAN STRATEGI BERSAING TERHADAP KINERJA UMKM DI KOTA SURABAYA

Abstract

UMKM’s performance is a result of personal success as a whole during a certain period in which what happened compared to the possibility, such as work result, target, goal, and criteria that had been decided and discussed together. This research aimed to examine the effect of tax incentives, and competitiveness strategy on UMKM's performance in Surabaya. The research was quantitative. Moreover, the data were primary with questionnaires as the instrument. The population was UMKM listed on KPP Wonocolo, Surabaya. Furthermore, the data collection technique used purposive sampling. In line with that, there were 100 respondents as the sample. Additionally, the data analysis technique used multiple linear regression with SPSS 23. The result concluded that tax incentives had a positive effect on UMKM’s performance. It meant UMKM could manage its capital with the incentives since they did not burdened by the tax obligation. As consequence, the performance would increase.Competitiveness strategy had a positive effect on UMKM’s performance by using indicators of price, quality, Delivery Dependability, product innovation, and Time to Market. In addition, UMKM that was mostly wanted by customers would increase sales value. As the result, UMKM’s performance would also increase.