Measuring inefficiency of MSEs in the food processing sector

The food processing sector is a that consistently contributes to gross domestic product (GDP) for the non-Oil and Gas industry also can deal with various economic shocks. A business form in this still dominated by Micro Small Enterprises (MSEs), which run traditionally. Therefore, research conducted MSE actors understand their efficiency better. This paper uses secondary data from results of business-level survey Department Industry Trade, Magelang City 2019 within random cross-sectional framework 948 micro-enterprises 199 small-enterprises estimates inefficiency determinants Indonesia MSEs divided into 2 categories, namely type small-enterprise micro-enterprise. based on cross-logarithmic production function show capital labor significantly impact improving efficiency. In addition, reason low small enterprises gender characteristics corporate actors. For micro-enterprises, marketing area cause inefficiency, while location enterprises.