SMEs have previously been the main player in domestic economic activities in Indonesia, in particular as a large contributor of employment opportunities. They become a generator of primary or secondary sources of income for many households. For low income or poor farm households in rural areas, SE units of fewer than 20 workers in non-farm activities are especially important. These enterprises have also been an essential engine for the growth of local economies and communities (Tambunan, 2006). The National Agency for Statistics (BPS) which uses the amount of workers as a foundation for determining the size of an enterprise, defines that small enterprises (SEs) and medium enterprises (MEs) are business units with, respectively, 1–19, and 20–99 workers, and large enterprises are of no less than 100 workers. Based on the Indonesian’s Law No. 20/2008 concerning Micro, Small, and Medium Enterprises, micro enterprises/businesses are defined as: a. Enterprises with net assets less than Rp 50 millions (land and building excluded) or; b. Enterprises which have less than Rp 300 millions total annual sales. While small enterprises/businesses are defined as: a. Enterprises with net assets from Rp 50 millions – Rp 500 millions (land and building excluded) or; b. Enterprises with total annual sales from Rp 300 millions – Rp 2.5 billions. Medium enterprises/businesses are defined as: a. Enterprises with net assets from Rp 500 millions – Rp 10 billions (land and building excluded) or; b. Enterprises with total annual sales from Rp 2.5 billions – Rp 50 billions. This study adopts the SMEs definition from The Ministry of Cooperatives and SMEs. 2.2. Measuring Growth A variety of indicators are commonly used to assess SMEs growth and there does not seem to be a general measurement. Gross value added, in comparison with the first two, is an indicator of results, representing the amount of salaries and other elements related to labour factors cost, profit, exploitation subsidies, fixed capital amortization, after subtracting production taxes. Profitability rate is calculated as the ratio between the gross result of exercise and the gross value added at factors cost, and represents pretty well the performances of the enterprise