The Development Strategy of Micro Small Medium Enterprises in Sungai Buluh Village, Singkep Barat District, Kepulauan Riau Province

Abstract

To stimulate regional economic growth, every region should fully explore the potential for local resource-based economic development. According to data from the Department of Manpower, Cooperatives, Micro Small Medium Enterprises Industry of Lingga Regency, the number of micro-small medium-sized processing industries in Singkep Barat District significantly increased from 22 units in 2014 to 53 units in 2019. The objective of this study is to formulate a development strategy for micro-small-medium enterprises. The resulting development strategy will be devised using the IFAS EFAS analysis method. The primary data was gathered through observations, interviews, questionnaires, and a review of relevant secondary documents. The findings revealed that all cracker producers source raw materials locally, with 58% of the raw materials derived from fish, shrimp, and squid, and high satisfaction with their quality. Despite the utilisation of traditional equipment such as bamboo and zinc, our study found that 51% of employers rely on local workers like family members and neighbours. Additionally, 77% of entrepreneurs fund their ventures using their own capital, with others resorting to bank loans or cooperatives. Notably, 89% of entrepreneurs market their products to shops and kiosks. The micro-small medium business industry boasts a high potential, with an average score of 88.6 (strongly agree), while the average score indicating issues in the industry's development stands at 74.525. Based on the results of the IFAS EFAS analysis, there are four priority-based strategies, including augmenting product marketing, expanding promotional efforts, increasing public awareness to safeguard sea and existing resources, and  suggest providing a drying place to address industry needs.