Small Scale Enterprise

Posted on August 10th, 2009

Informal and small-scale businesses have an important role to overcome effects of economic crisis and contribute to encourage the economic growth during the crisis. These business sectors have more superiority such as the ability to absorb employment and utilize local resources, and also the businesses are relatively flexible if compared with medium and large-scaled business. However, the small-scale businesses face some constraints regarding the capital aspect, business management expertise, and the quality of human resources as the management. These constraints are caused by the difficulties in accessing information and productive resources such as capital and technology, which influence the growth of small-scale business.

The development of small-scale business is one of the strategies used by the government to push the economic growth. In relation to the development of businesses, it needs complete information, easy and fast access especially on the potential information of economic sector or commodity. These factors are influencing the development of the businesses in a certain area (district), and the factors that influence the development, and the prospect of the development of integrated partnership program for the business sector or commodity.

Investment opportunity identification can be done more efficiently and effectively if the information on resources and their utilization such as profile of local economic activity is generated on the basis of small-scale business analysis. The research called as Baseline Economic Survey (BLS) . This research was conducted to renew the results of BLS conducted previously and it includes the collection of data/information directed to support the investment development activity and the development of small-scale business.

This survey mainly aims at identifying sectors/sub-sectors/commodities that can potentially be developed by designing the Priority Scale List (DSP) of Small Scale Business Development based on the sectors/sub-sectors/ commodities, which is elaborated up to a district level. It will also design the Integrated Partnership Program Commodity List (DKPKT).
This survey is expected to be able to reveal the direction and tendency of the regional economy based on the economic sectors/sub-sectors or the potential commodities . The economic trend was analyzed by assessing the fractional development to see which sector grows rapidly and has a potential for future development. In order to see how far a sector develops due to an influence of another sector, especially with the focus on the roles of small-scale business, an inter-dependency analysis of the economic sectors or sub-sectors is conducted.

The results of this Baseline Economic is to use the results of this survey as an analysis material and a feedback to refine the policies and to improve the implementation of a more focused regional development. For the Real Sectors the results of the survey provide important information for business investment development. Finally, for the Higher Education Institutions the results of the survey can be used as an information resource for thesis/dissertation writing or other types of writings.

reference : www.bi.go.id

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