It's no secret that MSMEs hold great power in the Indonesian economy, right BossQ? The sheer number of them and meeting their needs with such a variety of goods makes them an inseparable part of the daily lives of the people of the country. This business group even contributes around 60% of Indonesia's total Gross Domestic Product. There is so much news discussing this as well as real evidence that confirms it.
Despite the extraordinary size, the growth of MSMEs is not comparable. Quoting an article Indonesian SMEs in 2019, 98.7% of Indonesian MSMEs fell into the micro business category and this structure has not changed since the previous 10 years. This picture shows that our micro businesses have never been upgraded to become small or medium businesses. In fact, it is known from Katadata, Minister of Cooperatives and SMEs Teten Masduki targets the export contribution of Micro, Small and Medium Enterprises (MSMEs) to double by 2024. Meanwhile, to date, MSMEs only contribute 14.5% to national exports. Of course, to be able to realize this big hope, there are a number of big steps that need to be taken by the Indonesian people.
We have a role in advancing the economy together. The government has a role, and so do corporations and MSME owners. Each has a role to play, so each needs to focus more on personal responsibility, rather than blaming each other for things that have passed or things that are beyond their control. So, what can we do? The steps needed are the courage to change from old habits and the initiative to seek information that can support the development of our business.
Community Empowerment Through Digital Technology
An article from the news site Media Indonesia raises a phenomenon that we everyone feels it in real life, namely technological advances that change the way people live, people's consumption patterns, and competition in business as a whole. For example, now food ordering services using online motorbike taxis and smartphones with sophisticated cameras are slowly eroding the existence of their predecessors, such as private kitchens and digital camera products.
This shift is also closely related to the millennial generation. As time goes by, the millennial generation increasingly dominates the workforce, so of course it has also become a key group in public consumption. Therefore, to be able to defend themselves in market competition, every business owner needs to understand the target market, market position, and consumer needs.
Regarding market competition in this era, marketing expert Yuswohady explained that business conditions will increasingly change and be dominated by demands from millennials in the next five years. What are the demands of this generation? In contrast to previous generations, the millennial generation's consumption places more emphasis on the experience economy and sharing economy. In short, this generation is more concerned with experiences that can be shared via social media, and is less concerned about owning things as long as life is more minimalist and practical.
What about MSME owners?
Of course we need improvement in our business. The current situation presents its own challenges for MSME owners in developing their business, but that doesn't mean we can't do anything! Remember, the millennial generation generally likes services that provide convenience and comfort, as well as a different experience from the product provider. Apart from that, MSMEs also need to learn to strengthen their brand or trademark.
How? There are many. One way is to strengthen brand presence with digital technology that is close to people's daily lives, for example social media for marketing. By leaving a digital footprint, we make our presence clear among existing product or brand competition. What if our focus is not selling products with different brands, but developing kiosks and grocery stalls? The concept is the same, BossQ. With a digital touch that prioritizes consumer needs, of course the impact on business will be more pronounced.
As Yuswohady said in Media Indonesia, for To be able to "move up a class", MSME players need to be more technologically literate. A clear example of openness to change and technological progress that can bear sweet fruit is clearly visible in Kios Putri, which wants to seize the opportunity to become better with the help of SME Belimbing.
Sweet Fruit from the Cold Hands of Star Fruit SMEs
UKM Belimbing can be said to be one of the catalysts or triggers for acceleration which plays an important role in the progress of Indonesian MSMEs. With awareness of the importance of community empowerment, especially MSME empowerment, Belimbing UKM uses its cold hands to boost a number of MSMEs in the country.
Founded by Pak Harjianto, UKM Belimbing started its contribution in Depok, West Java, on May 12 2016, and is a forum or medium for community empowerment to help develop all types of MSMEs in Depok. The support provided to dozens of MSMEs is in the form of marketing assistance, both online and offline. With diverse but simple products, such as various chips and instant coffee and ginger drinks, this SME also guides small business owners to create online shops and utilize digital technology such as social media to support sales.
The skills and information needed to compete in today's market may not be something that small entrepreneurs are familiar with or do every day, so SMEs in Belimbing take further development steps, such as seminars to broaden their knowledge, training to increase their skills in the field of technology, information and communication (ICT), as well as counseling regarding SMEs. Apart from that, a number of regular gatherings or meetings, for example breaking the fast together, are also often held by Belimbing UKM to increase cooperation between MSME owners. This UKM also provides a coworking space, complete with computer and internet facilities that make it easier for business owners to access online marketplaces, or sales sites, which are used for transactions. Amazing, huh!
UKM Belimbing has also collaborated with Qasir several times in empowering the community to develop its business. For example, QTalks by Qasir, a talkshow event which presents business owners such as Sonny Arca Adryanto, owner of the Martabak Orins outlet, and Prabu Revolution, owner of the Prabu Steak & Coffee restaurant. Both of them shared stories of the ups and downs of establishing and maintaining a business, which was of course relevant and provided a lot of new understanding for the participants. UKM Belimbing is also working with Qasir to utilize the Qasir application as an empowerment effort in the digital sector. With various features designed to support MSMEs, these business owners can record transactions that are more efficient, open, easy and optimal for their business.
This dedication has led one of the Belimbing SMEs, Kios Putri in the Permata Depok Housing area, to use the Qasir application to record sales and stock of goods sold. Quoting the news Radar Depok, Kios Putri was able to reap huge profits after opening an online grocery store on one of the e-commerce platforms in Indonesia. The owner of Kios Putri, Yohanes Susanto, managed to achieve a turnover of up to IDR 20,000,000.00 per month with this strategy.
Kios Putri's journey with SMEs in Belimbing shows that empowering the community through technology, even from the basics, can elevate the success of SMEs to the next level. Stepping into a new zone such as using technology can sometimes feel uncomfortable, but often this is only due to a lack of understanding about it. Therefore, we need to cultivate openness within ourselves so that we can reach a wider market and open up many opportunities for our respective businesses. If Kios Putri can do it, all of us can do it.
Well, what about you, BossQ? After this, what will you do to develop your business optimally? Will you open yourself to change with the changing times?