Awareness of MSMES on Business Legality in The Business Incubator Program in Makassar City

Siti Syarifah Wafiqah Wardah

doi:10.63922/ijevss.v5i03.3887

Siti Syarifah Wafiqah Wardah Faculty of Social Science and Law, Universitas Negeri Makassar, Indonesia

DOI: https://doi.org/10.63922/ijevss.v5i03.3887

Keywords: legal awareness, business legality, MSMEs, business incubator, Makassar.

Abstract

This study analyzes the level of legal awareness of MSMEs toward business legality obligations within the business incubator program managed by the Makassar City Cooperative and MSME Office. Using a descriptive qualitative approach and Soerjono Soekanto's legal awareness theory—encompassing legal knowledge, legal understanding, legal attitude, and legal behavior—this study examines the extent to which MSME participants understand and comply with legality requirements including the Business Registration Number (NIB), halal certification, and trademark registration facilitated by the incubator. Data were collected through in-depth interviews with seven informants comprising the incubator manager, mentors, and MSME participants. Findings reveal that MSME participants demonstrate graduated levels of legal awareness that progress in line with the incubation stage reached. Legal knowledge and legal understanding improve significantly after structured training and consultation, particularly regarding NIB and halal certification. However, legal attitude and legal behavior remain inconsistent, especially among MSMEs at the early stages. The incubator has significantly contributed to increasing legal awareness through structured training, one-on-one consultations, and free legality facilitation. Factors influencing legal awareness include educational background, digital literacy, length of program participation, and mentoring quality. This study concludes that the business incubator functions as an effective instrument for building MSME legal awareness and recommends development of a dedicated legal literacy module tailored to each incubation stage.

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