IMPLEMENTATION OF MSMES BUDGET PLANNING: EVIDENCE FROM TRENGGALEK REGENCY INDONESIA

Micro, Small, and Medium Enterprises (MSMEs) have an important role in the movement of economicgrowth in Indonesia. As a business actor, it is important to focus on how to get maximum profit by lookingat financial performance. One way to produce good performance for MSMEs is to know how to makegood and correct budget planning. The budget has many functions such as for business planning, decisionmaking, control, communication, and business performance assessment. This study aims to analyzewhether MSMEs in Trenggalek Regency have implemented budget planning in their businesses. Theresearch method this time is to conduct a qualitative approach using interviews, observations, and directdocumentation of 30 MSME owners in Trenggalek Regency who are engaged in the most dominant sector,namely the beverage and food sector of the beverage and food industry in order to obtain realinformation according to the field. The results of the study showed that more than half of MSME businessowners from a total of 30 research objects still have not carried out budget planning properly. This showsthat the implementation of budget planning for MSME actors in Trenggalek Regency is still unevenlydistributed.