06 Oct How to Scale Up Indonesia’s Small and Medium Sized Enterprises (SMEs) in 3 Keys
Digital technology has provided good business opportunities, especially in small and medium sized enterprises. According to data from the Ministry of Communication and Information, there are 59.2 million small and medium sized enterprises in Indonesia. And as many as 8% (3.79 million) of the total owners have used digital platforms to market their products.
Small and medium sized enterprises can have a positive impact on economic development. Full employment is one of the impacts that occur as a result of the development of the business. In addition, development for small and medium sized enterprises will also increase per capita income.
However, some owners have difficulty designing strategic growth plans. There are several factors for owners can not improve their business. Constraints that often occur in small and medium sized enterprises are regarding digital transformation. Due to the lack of digital transformation, owners cannot access broad market share.
Digital transformation cannot be one of developed to scale up small and medium sized enterprises. According to the World Economic Forum, some owners do not have a clear understanding of their own potential. So their businesses have stagnated have a conclusion that there is no space for growth in their market segment. Therefore, tips are needed to improve SMEs business, so let’s get to know some of these tips.
1. Increase productivity and innovation small and medium sized enterprises
Increase productivity with technological and innovation capacity is regarded as an important determinant of competitiveness. At this stage, SMEs need to analyze and develop their products. Depending on relevant productivity, the owners might already have a strong idea of how creativity and innovation. There is a need for better innovation in order to capture mechanisms and behaviours market. So, this can provide a great opportunity to increase market interest.
Technology can also help owners to improve product innovation. There will be efficiency when we can utilize technology. Manys SMEs are characteesided by the use of traditional technologies, limited technical skills and lackof information about markets. These circumstances can lead to a lack of efficiency so that the business is difficult to develop
2. Increase Access to Finance
The basic problem that usually occurs in SMEs is a lack of capital. The lack of capital from owners has made the development of these businesses stagnant. This lack of capital can accur due to ineffective financial arrangements from the owner and it could also be because acces to capital is difficult. So there needs to be cooperation between the government and financial institutions to make it easier for business owners to get capital.
Furthermore, the government and financial institutions must provide financial literacy. The concept of financial literacy is less well understood and researched, especially in developing countries. In fact, financial literacy is seen as an important instrument for success of SMEs, since it helps to understand and evaluate the information needed to make daily decisions that have financial impacts in business.
3. Enhance market acces
MSEs owners must increase promotions so that the market can get to know the products they sell. Promotion can make potential customers aware of your brand and also helps in increasing customer traffic. Promotions will create brand awareness so that your target consumers know about your product. Without promotions, how will target consumers recognize and buy the products you sell.
When you have introduced your product and the target consumers have recognized your product, the next step is to create a good and positive impression on the products you sell. Build a positive and strong brand image so that consumers will prefer your product over competitors. To build a brand with a good image, you should focus on the quality of the products and services you have provided. In addition, by doing promotions, consumer loyalty will increase. This consumer loyalty is very important so that your target consumers do not switch to competitors.