Penelitian ini mengkaji pengaruh pembinaan pemerintah terhadap IKM-PED melalui pendampingan dan pelatihan terhadap pertumbuhan unit usaha dan kinerja usaha IKM-PED. Penelitian ini mengajukan lima hipotesis dengan jumlah sampel 190 pengusaha dan pengelola IKM-PED diseluruh Jawa Timur. Untuk menguji hipotesis penelitian maka dilakukan analisis Structural Equation Modelling (SEM). Hasil penelitian menemukan bahwa pembinaan pemerintah melalui pendampingan terhadap IKM-PED mampu meningkatkan pertumbuhan unit usaha dan kinerja usaha. Sedangkan pembinaan pemerintah melalui pelatihanternyata tidak mampu secara langsung berpengaruh terhadap pertumbuhan unit usaha dan kenerja IKM-PED. Pemerintah perlu melaksanakan prinsip-prinsip pengembangan IKM-PED yang didasarkan pada pemanfaatan potensi sumber daya alam andalan lokal daerah, masyarakat IKM-PED setempat dan sebagai pemasok utama pasar lokal. Pelestarian dan pengembangan seni tradisional budaya daerah juga perlu mendapatkan perhatian utama.

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Abstract
This paper presents the effects of Indonesian government?s developmental efforts of assistance and training performed on the growth of LED-SME business units and business performance. Both parameters of the government?s assistance and training were used to analyze the impact to the growth and performance of business unit. To achieve a comprehensive result, samples acquired in this research were about 190 entrepreneurs and managers of LED-SME fromEast Java. Based on the parameters above, there are five hypotheses made to prove the relationship of the assistance and training to the growth and performance of business units. The structural equation modeling (SEM) was carried out to test the hypotheses. The results have shown that the government?s developmental efforts through both assistance and training for the LED-SME were capable on increasing growth and performance of business units. On the other hand, government?s developmental efforts through only trainings were incapable of directly affecting growth of LED-SME business units and performance. To improve the business unit and performance, the government needs to implement developmental principles of LED-SME with the basis of utilizing local natural resources and also the communities of LED-SME as main suppliers for their local markets. In addition, preservation and development of local cultural and traditional arts also need to be the government?s main concern.