Abstract

Cibaduyut is one of the footwear clusters that have a high potential in terms of export. The development of globalization creates new pressures and opportunities in competition for SMEs nationally and internationally; the internal factors, playing an important role for SMEs to export. The purpose of this study is to determine what internal factors affect the decision of SMEs in the cluster to export, how, and what the future recommendations to develop export activities in Cibaduyut cluster. The research method used in this research is by using a quantitative method to 10 respondents that have export experience by using frequency data approach. From the frequency data studied, 10 internal factors that include, strong business capital, skilled workforce, good product made, strategic location, intensive marketing, adequate machine tools, adequate warehouse, attractive packaging, foreign language skills, and availability of raw materials, studied to 10 respondents by using the data frequency approach of the development hypothesis, indicates that only the language factor is rejected in the hypothesis testing.

Highlights

  • The effect of globalization on trade is to open a country's economic gate for export

  • From the frequency data studied, 10 internal factors that include, strong business capital, skilled workforce, good product made, strategic location, intensive marketing, adequate machine tools, adequate warehouse, attractive packaging, foreign language skills, and availability of raw materials, studied to 10 respondents by using the data frequency approach of the development hypothesis, indicates that only the language factor is rejected in the hypothesis testing

  • Internal factor is a very vital factor for SMEs to export; internal factors are factors that come from the condition of the company

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Summary

Introduction

The effect of globalization on trade is to open a country's economic gate for export. Cibaduyut is one of the famous footwear clusters in Indonesia It has stood since very long, but the SMEs there still do not have enough courage to do export. They have a very high potential for export, including having good quality products, competitive prices, and having skilled craftsmen. They have not dared to export directly, but some SMEs do indirect exports, through overseas customers who come and buy Cibaduyut products directly and through brokers. What are the factors affecting SMEs to export and enter the international market in Cibaduyut cluster. From this research will be known what are the factors that influence SMEs in Cibaduyut for export, and how the recommendations for the future

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