Abstract
SMEs are the main factor driving the country's economic growth. However, SMEs experience various difficulties in maintaining their business competitiveness. Therefore, they must carry out evaluations and improvements to improve their business performance. One of the management tools used to measure performance is the Balanced Scorecard (BSC). KPIs (key performance indicators) are used to determine the right initiatives to achieve targets. Unfortunately, the determination of process initiatives is usually based solely on previous experience, and there is no continuous improvement to find the best-targeted initiatives. Through kaizen, efforts to achieve targets can be carried out continuously and gradually using the PDCA pattern. This effort is a form of standardized improvement, so business performance is hoped to increase. The BSC and kaizen integration methods will complement each other to meet SMEs' needs and continuously improve their business performance. The research was conducted through case studies on SMEs manufacturing Batik Fashion. This study used surveys, discussions, and questionnaires to obtain data. This study proves that the kaizen approach can support the use of BSC in achieving goals and improving business performance in SMEs.
