Analysis of The Determinants of The Going Concern Of Small and Medium Enterprises In Ubud District, Indonesia

Abstract Small and medium enterprises (SMEs) are one of the leading driving forces in economic development. In Bali Province, SMEs are part of three pillars of economic development prioritized by local governments since 1969, in addition to the agricultural sector and tourism sector. Giving priority to SMEs, because the area of Bali Province is relatively narrow, and the limitations of the agricultural sector accommodate the growth of the workforce. With the holding of free trade, it is imperative for SMEs to maintain or improve their survival. This study aims to determine the determinants of going concern of SMEs in Gianyar regency, by taking samples of 80 respondents. Data were analyzed with tiered causality model with Structural Equation Modeling (SEM) model with Partial Least Square (PLS) software. The results showed that business characteristics, and human capital positively affect the contextual factors, while social capital has no significant effect on contextual factors. On the other hand, business characteristics, human capital, social capital, and contextual factors have a significant effect on the continuity of SMEs in Gianyar Regency. Keywords: Going concern, Small and medium enterprises, Economic development, Indonesia