Empowerment Strategies to Enhance SMEs’ Compliance with IFAS-MSMEs: A Systematic Review
https://doi.org/10.56225/ijassh.v4i3.469
Keywords:
SMEs compliance, IFAS-MSMEs, Empowerment models, Systematic literature review, PRISMAAbstract
Small and Medium Enterprises (SMEs) in Indonesia continue to face persistent challenges in complying with the Indonesian Financial Accounting Standards for Micro, Small, and Medium Entities (IFAS-MSMEs). Limited managerial capacity, insufficient financial knowledge, and evolving regulatory expectations contribute to inconsistent and unreliable financial reporting practices. Strengthening SMEs’ capabilities is therefore essential to support accurate and compliant reporting. This study synthesizes existing evidence on empowerment models designed to enhance SMEs’ compliance, identifies key approaches, and examines their contributions to improving reporting outcomes. Using a qualitative Systematic Literature Review guided by the PRISMA protocol, peer-reviewed studies were retrieved from the Scopus database and screened based on thematic relevance, publication period, language, and accessibility, yielding 37 articles for detailed analysis. A thematic synthesis was conducted to examine the types of interventions, reported compliance outcomes, and contextual factors that influence their effectiveness. The findings reveal five prominent empowerment strategies that support SMEs’ compliance: capacity-building programs, adoption of digital financial tools, advisory and mentoring services, leadership and organizational readiness, and supportive regulatory environments. Collectively, these approaches enhance SMEs’ ability to meet reporting requirements, with integrated, multi-level interventions demonstrating stronger impacts than isolated efforts. The review underscores that improving compliance with IFAS-MSMEs requires coordinated action across managerial, organizational, and policy dimensions. The insights generated offer practical guidance for policymakers, practitioners, and researchers in developing targeted, sustainable, and contextually appropriate support mechanisms. Future research is encouraged to explore the long-term impacts of interventions, digital transformation pathways, and sector-specific customization to further optimize compliance outcomes.
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