THE ROLE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN IMPROVING THE LOCAL ECONOMIC GROWTH

Small and Medium Enterprises (SMEs) have a great contribution to the economic growth in Indonesia both macro and micro. Economic growth in west Sumatra exceeded the national economy in 2015 up to 5.46% while the national economic only 4.71%. In 2016, economic growth in West Sumatra only grew about 4.81%. Despite the decline of economic growth, SMEs remain a factor supporting the economic growth in West Sumatra. This study was conducted to determine the extent to which the role of Small and Medium Enterprises (SMEs) in their contribution to the economy of local communities in West Sumatra. This study was empirically examining the role of SMEs in improving the economy of local communities by using qualitative methods. The research result explained that SMEs have already given a big share in improving the local people's economy due to most of the people of West Sumatera have an entrepreneurial spirit that have been ingrained hereditarily which has become the structure root of the original culture of the local economy