Abstract
Involving small and medium enterprise (SME) to supply or become partner of big scale industries by outsourcing mechanism can increase both’s performance.It can increase the quality of products since they can focus on their specific activity. It can be realized if both of them located nearby or in the same industrial estate. The main problems are barrier to entry and the difficulty to fulfill the standard. There is barrier to entry for SME to become partner of big scale industries and to move into industrial estate since more expensive cost to operate in there. This paper assessed SME’s possibility to move into industrial estate and also how to optimize the outsourcing area in industrial estate, using SWOT, location theory, BCR, and policy analysis. The results are scenario, policy and strategies to enable SME move into the outsourcing area and how to optimize the outsourcing areadevelopment.
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