Promoting Small and Medium Enterprises with a Clustering Approach: A Policy Experience from Indonesia

2005 ◽  
Vol 43 (2) ◽  
pp. 138-154 ◽  
Author(s):  
Tulus Tambunan
Author(s):  
Ganesh Narkhede B ◽  
◽  
Ganesh Narkhede B ◽  
Neela Rajhans ◽  
◽  
...  

For any company, whether big enterprises or small and medium-sized enterprises (SMEs), inventory is one of the key assets. Therefore, inventory-related decisions directly influence the revenue generated by the firm. This work aims to find a sufficient degree of control over each inventory item and to mitigate the inventory management problems of SMEs. Rank Order Clustering (ROC) algorithm is used in this study for multi-item inventory item aggregation. The proposed framework is tested on a medium-sized gearmanufacturing firm that manufactures 40 different types of planetary and customized gear-boxes. The results demonstrate 47.64 % of cost-saving through the proposed methodology of cluster formation using ROC and quantity discounts. This approach helps to identify different assemblies to aggregate the component requirements and to formulate a particular inventory strategy to minimize inventory carrying costs for each component.


2004 ◽  
Vol 6 (1) ◽  
pp. 29
Author(s):  
Tulus Tambunan ◽  
Hendrawan Supratikno

Small and Medium Enterprises (SMEs) in Indonesia are very important not only for employment creation, but also as important sources of economic growth and foreign currencies generation through exports. Since the early 1980s, the Indonesian government has adopted SME development policy through a clustering approach. This paper reviews the existing empirical studies on development of SME clusters in Indonesia. This paper deals with two main questions. First, what are the critical success factors of development of an SME cluster. Second to what extent this policy has contributed to the dynamic of SME clusters in the country. The paper argues that in many cases, the development policy has not been so successful. In essence, most failures can be attributed to the fact that one or more critical factors for successful SME cluster development were either not existing or not addressed correctly. Neglecting cluster linkage to markets is one reason of the failure. Prerequisite for successful cluster development is the cluster's potential to access to growing market, either domestic or abroad.


Author(s):  
Marius Octavian Olaru ◽  
Maurizio Vincini

Collaborative business making is emerging as a possible solution for the difficulties that Small and Medium Enterprises (SMEs) are having in recent difficult economic scenarios. In fact, collaboration, as opposed to competition, may provide a competitive advantage to companies and organizations that operate in a joint business structure. When dealing with multiple organizations, managers must have access to unified strategic information obtained from the information repositories of each individual organization; unfortunately, traditional Business Intelligence (BI) tools are not designed with the aim of collaboration so the task becomes difficult from a managerial, organizational, and technological point of view. To deal with this shortcoming, the authors provide an integration, mapping-based, methodology for heterogeneous Data Warehouses that aims at facilitating business stakeholders' access to unified strategic information. A complete formalization, based on graph theory and the RELEVANT clustering approach, is provided. Furthermore, the authors perform an experimental evaluation of the proposed method by applying it over two DW instances.


2021 ◽  
Vol 13 (14) ◽  
pp. 7807
Author(s):  
Rezzy Eko Caraka ◽  
Robert Kurniawan ◽  
Bahrul Ilmi Nasution ◽  
Jamilatuzzahro Jamilatuzzahro ◽  
Prana Ugiana Gio ◽  
...  

The COVID-19 pandemic has caused effects in many sectors, including in businesses and enterprises. The most vulnerable businesses to COVID-19 are micro, small, and medium enterprises (MSMEs). Therefore, this paper aims to analyze the business vulnerability of MSMEs in Indonesia using the fuzzy spatial clustering approach. The fuzzy spatial clustering approach had been implemented to analyze the social vulnerability to natural hazards in Indonesia. Moreover, this study proposes the Flower Pollination Algorithm (FPA) to optimize the Fuzzy Geographically Weighted Clustering (FGWC) in order to cluster the business vulnerability in Indonesia. We performed the data analysis with the dataset from Indonesia’s national socioeconomic and labor force survey (SUSENAS and SAKERNAS). We first compared the performance of FPA with traditional FGWC, as well as several known optimization algorithms in FGWC such as Artificial Bee Colony, Intelligent Firefly Algorithm, Particle Swarm Optimization, and Gravitational Search Algorithm. Our results showed that FPAFGWC has the best performance in optimizing the FGWC clustering result in the business vulnerability context. We found that almost all of the regions in Indonesia outside Java Island have vulnerable businesses. Meanwhile, in most of Java Island, particularly the JABODETABEK area that is the national economic backbone, businesses are not vulnerable. Based on the results of the study, we provide the recommendation to handle the gap between the number of micro and small enterprises (MSMEs) in Indonesia.


Author(s):  
Mudasetia Hamid ◽  
Evy Rosalina Widyayanti

Yogyakarta is a city and the capital of Yogyakarta Special Region in Java, Indonesia. It is renowned as a center of tourism, education and culture. Yogyakarta is one of the foremost cultural centers of Java. This region is located at the foot of the active merapi vulcano. Yogyakarta is often called the main gateway to the Central Java as where it is geographically located. It stretches from Mount Merapi to the Indian Ocean. This province is one of the most densely populated areas of Indonesia. Yogyakarta is popular tourist destination in indonesia after Bali. These have attracted large number of visitors from across Indonesia and abroad to the city. This status makes Yogyakarta is one of the most heterogeneus cities in Indonesia. In edition, Yogyakarta has attracted large number of people to reside in this city for business. One of these comers is small entrepreneurs with their market munchies enterprise (specially a traditional snack trader). This business is one of famous business in Yogyakarta, we will find rows of pavement vendors selling market munchies. The students and tourists are their main target customers. Market munchies enterprise is part of small and medium enterprises SMEs as livelihood activities. SMEs has an important role in economic growth of Indonesia. Therefore, it is very important to develop and strengthen the micro enterprise empowerment. Micro enterprise empowerment is one of strategy to reduce the poverty rate in Indonesia. Major challenger in implement this program are that micro entrepreneurs are conventional and have satisfied with their revenue. It is very important to develop a comprehensive and sustainable micro enterprise empowerment which consist of strengthen the quality of human resources, maximize the government’s roles, empower the enterprise capital and strengthen the partnership and autonomous. Micro enterprise autonomy will contribute to the economic and investment climate. This will lead to establish an accountable enterprise both for the micro enterprise and customers which at the end will strengthen the development of the micro enterprise in Yogyakarta.Keyword: micro entreprise, human resources, government roles, capital, partnership and autonomous.


Author(s):  
Khoirunnisa Cahya Firdarini

Accounting information has an important role to achieve business success, as well as for small businesses.This research examines the effect of business experience and accounting information system used toward business success with age of business as control variable. The population of this research are small and medium enterprises (SMEs) in creative industries sector operated in Yogyakarta district. Based on purposive sampling method, total sample of this research is 200 SMEs. Statistical tool utilized to test the hypothesis in this study is path analysis using structural equation modelling (SEM). The test result shows that business experience and accounting information have positive and significant effect to the success of SMEs.


Liquidity ◽  
2018 ◽  
Vol 1 (2) ◽  
pp. 159-166
Author(s):  
Muchtar Riva’i

The law arrangement of franchise law was first explicitly regulated by the Government Regulation No. 16 of 1997 which is then updated by Government Regulation No. 42 of 2007 to be created in an agreement that at least contains clauses as stipulated by Article 5 of the Government Regulation. However, franchise arrangements also associated with a variety of other laws and regulations applicable in Indonesia. This article is going to state that the importance of partnerships with small and medium enterprises as an effort to encourage the involvement of the wider economic community.


2020 ◽  
pp. 98-114
Author(s):  
Evguenia V. Bessonova ◽  
Alexander G. Morozov ◽  
Natalia A. Turdyeva ◽  
Anna N. Tsvetkova

The paper considers necessary conditions for acceleration of labor productivity growth in Russia. Based on micro data, as well as aggregate data, the paper quantifies the contribution of small and medium firms to labor productivity growth. It shows that mere increase of the number of small and medium enterprises is not as important for positive effects of these programs, as qualitative improvements: development of favorable environment for growth, which is largely determined by business climate. Accelerating productivity growth involves redistribution of labor and capital from inefficient to efficient enterprises. In particular, it is necessary to create conditions, which allow a firm to grow after it enters the market instead of stagnating as a small firm with low efficiency. At the same time, it is necessary for ineffective firms, which exhausted their growth potential, to have an opportunity to exit the market easily leaving resources including labor to fast-growing companies.


Author(s):  
Svetlana L. Sazanova

Entrepreneurship plays an important role in the modern global economy; the share of products of small and medium enterprises in the gross product and exports not only of the developed but also of developing countries is growing. Innovation processes cover all sectors of the economy, and more and more people are involved in entrepreneurial activity, which contributes to the penetration of entrepreneurial thinking and business values in all areas of the socioeconomic life of society. The Institute of Entrepreneurship plays an increasingly prominent role in the institutional environment of socio-economic systems. This actualizes the problem of studying the relationship of the institution of entrepreneurship with the institutions of law, culture, management. This requires a methodology that allows you to explore the impact on the institute of entrepreneurship not only economic, but also non-economic factors. The methodology of the “old” institutionalism possesses such a tool, it is structural modeling (pattern modeling), which allows to explore the diversity of interrelationships of the institution of entrepreneurship with other components of the institutional and economic environment. The article explored the features of the development of the institution of entrepreneurship in Russia, established the relationship between the institution of entrepreneurship, values, motives and incentives for entrepreneurial activity, built a structural model of the institution of entrepreneurship based on the methodology of the old institutionalism (pattern modeling). The structural model of the institution of entrepreneurship reveals the relationship between the institution of entrepreneurship, the values of entrepreneurial activity, its motives and incentives; as well as the relationship between the institution of entrepreneurship with the institutions of governance, cultural and religious institutions, legal institutions and society.


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