How does the Campus of Indonesia Empower SMEs? An Analysis of the Assistances found in KEMDIKBUD Programs; My Theme is on Research

  Introduction Small and Medium Enterprises (SMEs) have an important role in the economic and industrial growth of a country (Husband and Purnendu, 1999; Mahemba, 2003; Tambunan, 2005). Small businesses are important to study because they have a crucial role in economic growth on a national and regional scale. Mostly  90% of the total businesses in the world are contributed by SMEs (Lin, 1998).

 In addition, SMEs have a contribution to employment (Tambunan, 2005). Empirical studies show that SMEs on an international scale is a source of job creation (Olomi, 1999; Lin, 1998; Westhead and Cowling, 1995). The contribution of SMEs to employment, both in developed and developing countries, including Indonesia, has a significant role in overcoming the problem of unemployment.

 In Indonesia, SMEs have a strategic role in development, this is shown in the National Long-Term Development Plan (RPJPN) 2005- 2025 which states that to strengthen the nation's competitiveness, one of the long-term development policies is to strengthen the domestic economy based on the advantages of each region towards competitive advantage. One of the ways to realize this policy is through the development of SMEs. In addition, the issuance of Presidential Instruction Number 6 of 2007 concerning Acceleration of Development of the Real Sector and Micro, Small, and Medium Enterprises (MSMEs), shows the strengthening position of SMEs in national development policies. The fundamental problem of this is how to implement these policies so that SMEs in Indonesia can truly become economic actors who have a major contribution to strengthening the domestic economy. Based on research by The Hongkong and Shanghai Banking Corporation (HSBC) in 2007, SMEs in Indonesia are very optimistic to continue to be developed because around 64% of SME entrepreneurs in Indonesia have the intention to increase investment in business development and around 44% of SME entrepreneurs in Indonesia have plans to increase their business development. 

 This study concludes that SMEs in Indonesia is a barometer of a country's economic health. This study further reaffirms that SMEs in Indonesia have shown their role in the creation or growth of job opportunities and as one of the important sources of the growth of Gross Domestic Product (GDP). According the State Ministry of Cooperatives and SMEs (2007) stated that in 2006 the contribution of SMEs in the creation of national added value was Rp. 1,778.75 trillion or 53.3 percent of the national GDP with a GDP growth rate of 5.40 percent in 2005-2006. . research by Rafinaldi (2004) states that Indonesian SMEs have contributed to the employment of National Seminar on Information Technology Application 2009 (SNATI 2009) ISSN: 1907-5022 Yogyakarta, 20 June 2009 B-12 work, which is more than 50% of the total national absorption. This contribution shows that SMEs in Indonesia can strengthen the structure of the national economy (Prawirokusumo, 2001). 

Meanwhile, based on research conducted by AKATIGA, the Center for Micro and Small Enterprise Dynamic (CEMSED), and the Center for Economic and Social Studies (CESS) in 2000, shows that the characteristics of SMEs in Indonesia are the resilience to live and thrive. The ability to improve their performance during the economic crisis. Basri (2003) suggests that SMEs in Indonesia can survive during the economic crisis due to 4 (four) things, namely: (1) Most SMEs produce consumer goods, especially those that are not durable, (2) The majority of SMEs rely more on non-banking financing in the aspect of business funding, (3) In general, SMEs carry out strict product specialization, in the sense of only producing certain goods or services, (4) The formation of new SMEs as a result of the many layoffs in the industry. formal sector. Facing the global economic crisis and multilateral free trade (WTO), regional (AFTA), APEC informal cooperation, and ASEAN Economic Community (AEC), SMEs are required to make changes to increase their competitiveness so that they can continue to run and develop.

Theoretical   of SMEs and Research Proposition

Structural theory Internal Problems (Basic) Lack of capital and limited access to finance are the main obstacles in developing small and medium enterprises (SMEs). 

The majority of entrepreneurs use their own capital in running their businesses.  Lack of SME capital, because SMEs are private businesses or companies that are closed in nature, relying on very limited own capital, while loan capital from banks or other financial institutions is difficult to obtain because the administrative and technical requirements demanded by banks cannot be met. Limited Human Resources Education (HR) Most small businesses grow traditionally and are family businesses that have been passed down from generation to generation. The limited human resources of small businesses, both in terms of formal education and knowledge and skills, greatly affect the management of their business, so the business is difficult to develop optimally. In addition, with limited human resources, it is relatively difficult for these business units to adopt new technological developments to increase the competitiveness of the products they produce. Weaknesses of market penetration (E-Marketing) Small businesses, which are generally family business units, have very limited business networks and low market penetration capabilities because the number of product innovations produced is very limited and of less competitive quality. 

                             

 SOLUTIONS AND EXTERNAL TARGETS

 Framework Models and Solutions The process of empowerment results obtained consistently after the training. And aspects of capital and the marketing aspect is a priority factor that determines the continuation of the prospects for SMEs.

                                                                CONCLUSION 

 The results of the Mentoring are obtained on the premise of the Indonesian SME fostered program Bangkit Innovation to protect the Nation from COVID -19 and the analytical Hierarchy Process that gives maximum results for the economic empowerment of SMEs in Central Java.

Research Method

Analytical results

Research Finding

Conclusion, Limitation, and Future research