small business. small forever?? a glimpse of small business in indonesia

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Where Do We Go From Here? a glimpse on UKM a glimpse on UKM that sometimes overlook A CSR Opportunity to work together with UKM By Dipo Aji Nugroho Former 4 th Gen. UKM Alumni Business Incubator at KADIN BDG

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Small business simply can't stay small forever, right? A Sample case in Indonesia. [email protected]

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Page 1: Small business. Small forever?? A glimpse of small business in Indonesia

WhereDo We Go

From Here?a glimpse on UKMa glimpse on UKM

that sometimes overlook

A CSR Opportunity to work together with UKM

By Dipo Aji Nugroho

Former 4th Gen. UKM Alumni Business Incubator at KADIN BDG

Page 2: Small business. Small forever?? A glimpse of small business in Indonesia

Eyes On UKM

• UKM plays as an “Indonesia’s economy life support” for more than 40% country’s income

• > 20% UKM creative industries inhabit • > 20% UKM creative industries inhabit West Java

• To date, BPPKU (as Bandung Chamber of Commerce “right hand” for UKM) has over than 2000 UKM registered & monitored

Page 3: Small business. Small forever?? A glimpse of small business in Indonesia

There’s just a bit of a Problem

• Not all is running well

• Mereley < 5% have good performance

• Where are the rest?• Where are the rest?

– Well, they’re mostly still creative

– Have good and quite competitive

products

– They simply don’t have the access

Page 4: Small business. Small forever?? A glimpse of small business in Indonesia

Access to What?

• If you say funding or else money

then you’re partly correct

• WHY IS THAT ..??

• Well,..money is mostly used for facilitating:

– More man hour / workers– More man hour / workers

– More products

– More machines

• But

– More sales ?

– More market ?

– Better financial setting ?

Let UKM worried these

problem themselves?

Page 5: Small business. Small forever?? A glimpse of small business in Indonesia

They Need Directions

• We don’t want to point them as conventionals in

doing business…but most of them are

• Funding is rarely used :

– For getting more Trainings

– For hiring ProfessionalsVery

– For hiring Professionals

• To accelerate growth

• To speed up sales

• Marketing efforts

• Controlling financials

• As a result :

RARE

An UKM An UKM todaytoday is the same as what an UKM is the same as what an UKM waswas

Page 6: Small business. Small forever?? A glimpse of small business in Indonesia

We have to stop this Pattern..!

• Not all UKM are behaved that way

• Some of them made it to the surface and successful :successful :

– Keep profiting

– Maintaining growth

• How’d they done it??

Page 7: Small business. Small forever?? A glimpse of small business in Indonesia

Really…..How ??

• Lots and lots of knowledge & experience

in doing business

– Up-to-date creative products

– Good marketing and sales

– Easy to read financials– Easy to read financials

– Good network

– Plenty of market access

• We surely don’t want to keep

UKM to stay small forever, do we ?

Page 8: Small business. Small forever?? A glimpse of small business in Indonesia

Sceptic. Is it just simply Luck

that UKM can grow that big?• Lots of opinion that UKM got big because

they have great number of orders at some

event.

• They simply at the right time & at the right • They simply at the right time & at the right

place.

• Well…..we don’t deny that. I mean an

event is part of sales effort, right?

• But what about those who doesn’t have

that kind of opportunities…or luck as we

may say ??? Pure Hard Work..!!

Page 9: Small business. Small forever?? A glimpse of small business in Indonesia

A Letter to You• Dear sir, I’m a start-up…but I assure you I

have one of a kind product..you should see it!

• Dear ma’am, my business is going nowhere.

It’ still the same as it was 10 years ago. What

went wrong?

• Can you help me…?• Can you help me…?

• What do I do next..?

• After this huge order…and then what?

• Right now…Money is only part of the issue

Page 10: Small business. Small forever?? A glimpse of small business in Indonesia

Help Me Help You

• Clearly…beside money, UKM needs extra knowledge in doing business

• HOW ?

MAKE UKM MAKE UKM

PROFESSIONAL

THROUGH

PROFFESIONALS

Page 11: Small business. Small forever?? A glimpse of small business in Indonesia

Help Me Help You (2)

• Supply professionals as their (UKM) buddies

• A professional can be: consultant or in-house within UKM site

• Question !!– Why not simply UKM just hire the professionals?

– I mean..they have the money

• Answer– Can you solely believe UKM will choose the right

one?

– Or yet..does it cross their mind to hire professionals? Might as well buy some machines ☺ like they always

do…

Page 12: Small business. Small forever?? A glimpse of small business in Indonesia

Creating Sense of Belonging Between UKM & Companies

• Think of friends who helped each other

• Companies not only funding money to UKM

• Companies act as buddies to help grow UKM business

• In what way?

– Knowledge & Experience

• Where to get this knowledge & experience?• Where to get this knowledge & experience?

– Through trainings and consultations

• Is there other way to speed things UP?

– Yes there is. Companies may select professionals to help UKM in needs

• To strengthen sense of belonging, companies may have some share of UKM business. It’s not much….but it makes you as part of UKM life

• Surely UKM will report all activities to companies as being part of their business

Page 13: Small business. Small forever?? A glimpse of small business in Indonesia

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