Strategy for Improving the Performance of Culinary SME Actors in Langsa City, Indonesia

Abstract

Small and Medium Enterprises (SMEs) are pivotal in propelling the Indonesian economy. The stability and sustainability of economies in different regions have been greatly affected by the worldwide economic issues that have emerged due to the COVID-19 pandemic. One of the identified repercussions can be witnessed in the culinary sector of small and medium-sized enterprises (SMEs) in Langsa City. Thus, this study examines the effect of internal and external factors on the performance of Small and Medium Enterprises (SMEs) operating in the culinary sector within Langsa City. Additionally, this research aims to evaluate and propose strategies for enhancing the performance of SMEs in the culinary industry by employing a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis framework specifically tailored to the context of Langsa City. The present study uses a qualitative research design utilizing a case research approach. Data is gathered by distributing questionnaires, conducting in-depth interviews, and assessing validity through source triangulation. Based on the findings of the study, it was determined that the Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS) about the performance evaluation of Small and Medium Enterprises (SMEs) operating in the culinary sector in Langsa City have not yet reached their maximum potential. This conclusion was drawn through the application of SWOT analysis. This observation may be due to the outcomes of the Cartesian diagram utilized in the SWOT analysis. The chart reveals that quadrant II exhibits the highest cumulative score, suggesting several risks encountered by the business stakeholders. However, the culinary small and medium-sized enterprise (SME) actors have internal strengths. To boost the performance of Small and Medium Enterprises (SMEs) in the culinary sector, it is imperative to employ a Strengths-Threats (S-T) approach that focuses on implementing product diversification techniques.