The Development Strategy of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia through Improving the Entrepreneurial Competencies

Abstract

Purpose – This research aims to develop and design Micro, Small and Medium Enterprises (MSMEs) development strategies in Indonesia through improving entrepreneurial competencies.

Design/Methodology/approach - SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis consists of: 1) Internal Factor Evaluation and External Factor Evaluation, 2) SWOT Matrix (S-O Strategies, S-T Strategies, W-O Strategies, and W-T Strategies), and 3) Weighted Score Table to determine the main strategy.

Findings – From SWOT analysis, the researchers can arrange and design the development strategy for Micro, Small, and Medium-sized Enterprises (MSMEs) in Indonesia through improving entrepreneurial competencies, namely; improving human resources’ knowledge and skills in  new business license, licensing new businesses, business management, regulating production processes, business operations, and business development, and also improving knowledge and skills in marketing the products to meet consumer demand. It is also a need to improve attitudes such as courage, self-confidence, independence, tenacity, and willingness to work hard in running businesses or MSMEs.

Research Limitation/Implications – This paper provides input for the development of MSMEs in Indonesia through improving entrepreneurial competencies.

Practical Implication – The arranging of statregy design using SWOT analysis can be the guide for MSMEs to develop their businesses.

Originality/Value – This paper integrates SWOT analysis into the business world especially towards the development of MSMEs in Indonesia