Empowering Small-Medium Enterprises for Developing Local Business: Case Study in Sub-district of Karanggede, Regency of Boyolali

Abstract

The study aims to explain the empowerment of small and medium enterprises (SMEs) as an effort to increase the sustainable local economy. In developing countries, SMEs play an essential role as the backbone of regional income, which significantly contributes to the national economy. Unfortunately, the SME sector faces various problems stemming from external and internal factors. The SME empowerment program is an effective alternative solution in developing the capacity of SMEs to maintain business continuity and develop innovative products. This research uses a qualitative approach with a case study method. Participant observation, in-depth interviews, and literature review were used to explore data in detail and depth. A purposive sampling technique was used to determine relevant and appropriate informants with the research topic. The study results show that 1) innovation is essential in maintaining SME business continuity. 2) The SME empowerment program aims to build the capacity of SMEs to increase their innovation. In this case, human resources and organizational capacity are carried out by derivative educational activities and workshops, training, and the use of ICT to develop organizational governance. Some of the proposed policy recommendations, the desire for the SME empowerment program needs to be on the agenda of the regional government's annual activities, the application of SME product protection policies must be carried out, and the use of SME products in various public and government events needs to be carried out.