What is it about?
SMEs in Indonesia play a vital role in development and economic growth, important roles include job creation, contributing to state revenues and reducing poverty in Indonesia. The results show the development of institutional capacity is determined by Internal factors include: 1) Leadership Aspects, 2) Shared commitment aspects, 3) Business Weaknesses and Strengths Recognition, 4) Participation Aspects, 5) Innovation aspect, 6) Transparency aspect. External factors include: 1) Networking aspect, 2) Information aspect, 3) Regulation Aspect (Law)
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Why is it important?
Factors that we found can influence the development of small-scale garment business in Cigondewah, Bandung. Internal factors include (a) aspects of leadership, which need to be further developed; (B) the aspect of commitment, which has been enhanced to be better prepared for long-term business objectives; (C) management of weaknesses and strengths; (D) aspects of participation, which have been properly implemented in accordance with our findings; (F) aspects of innovation, which need to be further developed; And (g) business finance management, which needs to be more transparent. External factors that we have examined include (a) networks, which we think are still limited; (B) information, which still needs to be developed; And (c) the regulatory aspect, where we find a high degree of inconsistency and uncertainty. Overall, this study shows that small-scale garment businesses in Cigondewah centers have not applied the principles of entrepreneurial competence required to stay competitive within an ever-changing timeframe. As well as the pioneering success of this business in the city of Bandung, because it has entrepreneurial competence.
Perspectives
I hope this article can be used as a comparison material for other researchers, in solving SME problems. because solving the problems of SMEs in any country can not be solved by one field to the scientist. through this article we can collaborate thinking of research results especially about SMEs to accelerate economic growth
Dr dindin Abdurohim Brata Sonjaya
University of Pasundan
This article is a very pleasant research, because in the process it can work with various parties involved both business actors, government and fellow lecturers. and also the results can be a reference for solutions especially SME development
dindin abdurohim
Universitas Pasundan
Read the Original
This page is a summary of: SME’s development indicators and organizational capability, Human Systems Management, May 2018, IOS Press,
DOI: 10.3233/hsm-17130.
You can read the full text:
Resources
COMMUNITY ECONOMIC EMPOWER STRATEGY
Ranking of Indonesia's Human Development Index Down to -113 from 188 Country in the World. Wednesday, 22/03/2017 18:45 WIB. Jakarta, CNN Indonesia - The United Nations Development Program (UNDP) in the Human Development Report 2016 report noted that the Human Development Index (HDI) Indonesia in 2015 is ranked 113, down from 110th position in the Year 2014. First, the level of poverty and hunger. UNDP notes that there are around 140 million Indonesians living on less than Rp 20 thousand per day and 19, 4 million people suffer from malnutrition. Second, health and mortality rates, as many as two million children under the age of one year have not received complete immunization. Then, the numbers maternal deaths as many as 305 deaths per 100 thousand live births. Third, access to basic services. UNDP sees that nearly five million children are not in school and children in Papua have levels removed from high school. THIS IS ONE OF THE BASICS: COMMUNITY EMPOWERMENT. Empowering a means by which people, organizations, and communities directed to be able to master (or rule over) his life. Target: Institutional / Organization / Community / family / Individual. Target Field: Economics. Final Destination: Have Ability & Independence.
CAPACITY OF SMALL BUSINESS INSTITUTIONS
Small Businesses in Cigondewah Sentra area has a role and contribution in economy of Bandung City, through contribution to the number of business units, as many as 169 business units, and absorb the labor of 1,118 people. The main problem faced is not the problem of capital, marketing, labor, technology, and market only, but the main problem lies in the institutional capacity. Based on the findings of the researcher, the condition occurs because the business owner still has limitations in the way of thinking and acting (mental attitude), lack of spirit, and limitations of science in managing the business While the business environment is not clear and consistency of information, the regulation of Bandung . One finding that shows the characteristics of small business in Cigondewah Sentra area of Bandung City aspect networking or business network which is a very important aspect for the existence, survival ability, and the sustainability of its business. Based on the description of the research findings, the institutional capacity of small-scaled businesses in the Sentra area of Bandung, shows the lack of entrepreneurial skills such as: the spirit, attitude, actions and knowledge in running the business. One finding that shows the characteristics of small businesses in the area of Cigondewah Sentra Bandung, which is a very important aspect for the existence, survival, and sustainability of its business. Researchers obtain a new concept for the development of Business Administration Sciences, in terms of institutional capacity building of small businesses is the concept of Nutworking Entrepreneurship Competence.
INSTITUTIONAL DEVELOPMENT STRATEGY IN THE MARKET ASEAN SMEs.
The main concept of the MEA is creating ASEAN as a single market entity where there is a production base of free flow of goods, services, factors of production, capital and investment, as well as the elimination of trade tariffs among ASEAN countries. Through the strengthening of this cooperation is expected to reduce the level of poverty and ec onomic disparities among its member states through a number of mutually beneficial cooperation. Envir onment single market and production base is expected as well, making ASEAN more dynamic, productive and make more powerful segments of the chain of global forces, as well as the bargaining position of ASEAN in the global economy to be strong and competitive. SMEs in Indonesia to make greater contributi ons to the National for Economic Employment, GDP and Exports compared to Other Countries. Indonesia has the power to develop the economy in the ASEAN market environment (MEA), among others: the purpose ASEAN investors, potentially becoming the exporting country and others - others. Environmental ASEAN markets create opportunity a nd a challenge, especia lly for SMEs, to be able to compete, In fact, the ex istence of the market environment of ASEAN, For SMEs still face obstacles in doing business in Indon esia compared to Other Countries , internal barriers include: Institutional and Human Resour ces, Production and Marketing, as well as capital intellectual. While the External barriers in clude: access financing, bureaucracy and Infrastructure Services. SMEs can choose the right business strategy to take advantage of the ASEAN market environment, one of which is the institutio nal development strategy, which includes the dimensions of the internal changes, the dimensi ons of intellectual capita l, the dimensions of environmental change and the dime nsions of the business network. Indonesian SMEs institutional development stra tegy can be implemented, would be but need policies and practical proactive support from va rious Indonesian SMEs institutional development strategy can be implemented, would be but need policies and practical proactive support from various stakeholders.
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