Marketing and Government Policy on MSMEs in Indonesian: A Theoretical Framework and Empirical Study

Ernani Hadiyati

doi:10.5539/ijbm.v10n2p128

Abstract

Marketing is the fundamental challenge faced by Small Medium Enterprises (MSMEs) to succeed. The most dominant issues SMEs have to deal with are: market and product competition, institution and market information access that supports marketing. To minimise the marketing problems, the government role as a policy maker isrequired, such as Act no. 20 year 2008 about MSMEs and the formation of Cooperation Ministry and MicroSmall Medium Enterprises with marketing deputy. The government programme on small enterprise developmentand empowerment through strategical marketing planning formulation covers: export market expansion anddevelopment, marketing infrastructure development, marketing partnership expansion with established enterprises, product marketing network development and product promotion development. Government intervention in marketing is anticipated to conduce improving MSMEs performance that contributes to the national economic growth through PDB growth, employment, and non-oil export.

Highlights

Empowerment of Micro, Small and Medium Enterprises (MSMEs) is an integral part of national development, aimed at building a just and prosperous society
The results showed that the customer has the important role to be studied in marketing SMEs
The qualitative approach is used to describe the government policy in marketing according to Act no.20 year 2008 about SMEs and marketing strategy from Cooperation Ministry deputy and MSMEs in marketing

Summary

Introduction

Empowerment of Micro, Small and Medium Enterprises (MSMEs) is an integral part of national development, aimed at building a just and prosperous society. In the economic development sector, the 1945 Constitution stresses explicitly the implementation of the kinship principle (Article 33, paragraph 1) and the implementation of the national economy, based on economic democracy (Article 33, paragraph 4). Policies that supports the MSMEs (affirmative policy), has become a widespread expectation within the public, they are aware and concern about their fate of the publics’ economy. Many factors affect the slow progress of these efforts, among others, the lack of attention from the government that can help solving the existing problems. SMEs has several common problems such as: low capital, difficulty in marketing the product, strong market competition, difficulty in obtaining raw material, lack of knowledge in the management and technical production

Methods

Findings

Discussion

Conclusion