Legal Protection for MSME Businesses and the Impact of Business Competition

Abstract

The progress of MSME business actors in Indonesia is a huge effort from various parties, coupled with the increasingly rapid global market which provides freedom for monopoly activities to occur. The existence of monopolies and oligopolies in a company often occurs in every country. In the economic sector, this often occurs so that it continues, ultimately leading to the occurrence of monopolistic acts and unfair business competition from various other forms will hinder the growth of MSME businesses. In micro and small businesses; as well as medium-sized (MSMEs) which have a very important role improving the regional and national economy.in accordance with Provisions of law no. 2 of 2008 MSMEs are productive micro-enterprises owned by individuals and individual business entities fulfill the criteria for being a micro business as per still needed regulations. For MSME businesses in Indonesia, household business activities have been able to provide large employment opportunities. The large heavy responsibility faced by MSME business actors comes from the scope of the product market alone, however, as the market becomes wider, competition from having to compete with companies in large categories becomes inevitable, as well as within the market itself, it also influences, among other things, the difficulty of accessing credit and technology. as well as the existence of human resources. Likewise, there is pressure from both parties which results in the productivity of MSMEs make lower than that of large companies