Critical Success Factors for Micro, Small and Medium Enterprises in Indonesia Silvia Anggraeni 1 Frangky Selamat 1* 1 Management Department, Faculty of Economics and Business, Universitas Tarumanagara, Jakarta, Indonesia *Corresponding author. Email: frangkys@fe.untar.ac.id ABSTRACT This study aims to examine the predictive ability of Critical Success Factors (CSF) for Micro, Small and Medium Enterprises (MSMEs) in Indonesia. The MSMEs sector plays an important role in driving Indonesia's economic growth. Thus far, a lot of research has been done on what contributes to the failure or trust of MSMEs, but specific research on CSF for MSMEs is still limited, and the findings are still inconclusive. The data was collected using an online questionnaire and analyzed by using PLS-SEM. This research was conducted by descriptive method with a total sample size of 69 respondents and the sampling technique using purposive random sampling. These results indicate that brand reputation, excellence customer service, reliable delivery, and government support affect MSMEs in Indonesia, whereas innovation does not. Keywords: Critical success factors, Innovation, Brand reputation, Government support, Success of MSMEs 1. INTRODUCTION According to Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises (MSMEs), small businesses are defined as independent productive economic activities [1]. It is generally accepted that MSMEs play an important role in economies around the world [2]. Breaking the poverty chain by creating jobs is the main task of MSMEs [3]. In developing countries, MSMEs are the main source of income, breeding ground for employers and job providers [4]. According to BPS [5] the number of MSMEs is 64.19 million businesses and the MSMEs workforce is 117 million workers. The BPS Economic Census [5] released data on the contribution of MSMEs, namely absorbing up to 97 percent of the total workforce, providing up to 99 percent of total employment, and contributing 60.34 percent of total National GDP, 14.17 percent of total exports, and 58.18 percent of the total investment. Thus far, many studies have been conducted about something that is related to the failed and fruitfulness of MSMEs, but research more specifically on Critical Success Factors (CSF) for MSMEs is narrow and the invention are yet undetermined [6]. Punctual research before, generally discussing what contributed to the failed of MSMEs, trying to find the factors that influence these failures, and discussing how to avoid these factors in order to reduce the risk of failure. These factors could be devided equally a person typical such as businessperson behavior, or non- individual typical such as organisantional stalwartness and the MSMEs environment [7] [8]. Besides Jasra, Hunjra, Rehman, Azam, and Khan [3] analyzed the effects of fiscal resource, strategy of commerce, resource of technology, government supports, way to information, enterprise plans and entrepreneurial skills on successful businesses. Skills from entrepreneurship are lacking, and financial resources are common factor. Even if these factors are met, it does not guarantee success. Therefore, further learning needs to be done about how these factors influence the successful of MSMEs. Research on CSF for MSMEs has not been widely studied in Indonesia. Some of the studies that have been carried out generally do not specifically discuss CSF for MSMEs, for example, as has been done by Subanidja & Legowo [9] which examines the investigation of financial constraints that help the success of the Enterprise Resource Planning (ERP) system and will improve performance. UKM. Therefore, the important reason this research is conducted is to examine what factors drive the success of MSMEs in Indonesia, with the variables to be studied replicating from Alfoqahaa's research [6], namely brand reputation, customer service excellence, reliable delivery and innovation. Reputation of brand served as a source of lasting demands and appeal [10]. Today's excellence in customer service is an important factor for business success [11]. Reliable delivery is the cornerstone of logistics process because it considers potential losses [12]. Based on Warren’s et al. literature review [13] innovation means the application of new technology, market science and also a form of business that is able to provide a combination of new products or services to consumers who can afford to buy with the price that providing profits. This study also examines the relationship of government support to the success of MSMEs, because according to Doh and Kim [14] [15] government support has a positive effect on the success of MSMEs. The purpose of this study is to empirically test the predictive ability of CSF on MSMEs in Indonesia. The results of this study are expected to be used to investigate the success of Advances in Social Science, Education and Humanities Research, volume 570 Proceedings of the International Conference on Economics, Business, Social, and Humanities (ICEBSH 2021) Copyright © 2021 The Authors. Published by Atlantis Press SARL. This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 201