Local Wisdom Values in the Development of Micro Business Based
Creative Economy
Arie Indra Gunawan
Lecturer Economics Education Program FKIP Unswagati, Cirebon, Indonesia
Keywords: Micro business, Creative Economy, local wisdom.
Abstract: The value of local wisdom is potential because it can add value to the micro business activity based on creative
economy. The research method is qualitative with regional regional approach. Observations, interviews, and
documentation are used as a way to get data. The research was conducted to find out how acculturation of
local wisdom values in business activity of creative economy in Cirebon. The location of this research is
micro business located in 9 areas in Cirebon region representing 17 micro business, and various kind of
creative economic activity. Based on the research results, it is known that the value of local wisdom appears
in micro business activities. The value of local wisdom in micro-enterprises collaborates on creativity, skills,
imagination and creative talent to provide reinforcement to business products. With the value of local wisdom
that joins the economic creativity, micro business becomes more productive, innovative, and high selling
power.
1 INTRODUCTION
After the great economic crisis that hit 1998 there are
several assumptions that need to be maintained so that
Indonesia's economic condition is strong in facing the
dynamics of global economy. One of the lessons
learned from the crisis is that the economy must be
developed in a variety of sectors, especially large-
scale microfinance sectors.
The existence of micro business is very contribute
in the national economic activity, micro business is
one type of business that can grow and influence in
the national economy. Micro-enterprises create more
productive employment creation, because micro-
enterprises are typically labour-intensive businesses
that can absorb a lot of manpower. Micro-enterprises
have an important role in improving Indonesia's
economy, both in terms of number of businesses,
terms of employment creation, and in terms of
national economic growth as measured by Gross
Domestic Product
One of the special properties that micro
businesses have, is that micro businesses have greater
flexibility and adaptability when compared to larger
firms. Flexible because it can adapt to various
regulations and actual economic conditions that
occur, easily adapt in getting the raw materials,
equipment, and various resources required.
Therefore, when the economic crisis hit Indonesia
some time ago this micro business sector proved more
resilient in the face of crisis than other big business.
Based on the Central Bureau of Statistics Cirebon
2015 presented in table 1, micro business activities in
terms of industry and trade in Cirebon are classified
into 3 main sub-sectors namely Food, Textile and
Wood.
Table 1: Company and Manpower According to Sub Sector
in Kab. Cirebon 2015
Food
Textile
Wood
Company
Worker
Company
Worker
Company
Worker
Small
industry
351
3306
208
1561
484
3317
Home
Industry
2858
7307
795
2155
1566
2884
Amount
3209
10613
1003
3716
2050
6201
Source: BPS Kab.Cirebon 2015
Cirebon area is one of the most potential areas to
become an economic market, in this region also has
many micro enterprises that emerged as a result of its
demographic and strategic position, this region is
located on the north coast of Java known as pantura.
This city connect Jakarta-Cirebon-Semarang-
Surabaya. Economic development in Cirebon
influenced by strategic geographic location and
excess characteristic of natural resources, Cirebon is
a city full of cultural values that embedded the value
116
Gunawan, A.
Local Wisdom Values in the Development of Micro Business Based Creative Economy.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 116-122
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

of local wisdom. that is seen from the personality and
daily life of the people of Cirebon. The tourism
sector, the food and textile industries are all exposed
to the local wisdom of Cirebon considered by the
community as the "Kota Wali".
The consumer market and the trade industry are
potential markets for micro businesses, but despite
the potential, micro businesses are not easy to enter,
there are some difficulties faced by competition.
Given the potential market and the large number of
micro-enterprises, of course, will lead to a
competitive situation, this will become an obstacle for
micro-enterprises. Micro businesses need to
anticipate this by implementing various strategies to
survive in competitive situations and gain potential
market share.
Various strategies are undertaken to develop
micro business, one of which is to collaborate with
the concept of creative economy. The creative
economy is a new economic power that does not
depend on the diminishing factor of limited
production. This activity adopts the power of
unlimited creative action, a creative economy that
focuses on the creation of goods and services by
relying on expertise, talent, and creativity because
intellectual property is a way for the Indonesian
economy to succeed, to compete strongly, and to
achieve excellence in the global economy.
The current economic development is
dimensioned to the regional autonomy aspect, which
means that the acceleration of economic development
depends on the existence and sustainability of
regional governments that demand effective, efficient
and productive regional governance. This means that
good cooperation between stakeholders and
economic actors is needed. In every region that has
diverse cultures and specific and diverse potentials,
this will create a driving force for economic activity.
Therefore micro business activities can be developed
by exploring the potential, cultural richness, and local
wisdom.
The number of micro enterprises in Cirebon area
is very much, if it can grow in real amount it will
greatly boost the economy of Cirebon area. Based on
research conducted by the New England Foundation
of the Arts (NEFA) cited in Puguh & Malik Research
from FE UNS in 2011, mentions that creative
economy based on culture done in a community.
Therefore, micro business in Cirebon region has a
huge opportunity in creating a product that is in
demand by the market, because it has the potential of
characteristic natural resources combined with the
values of local wisdom that comes from a very high
culture. The dominant values of local wisdom felt in
Cirebon can be an additional capital for economic
activity, the capital is used as an addition to product
characteristics in terms of distinctive characteristics,
identities, characters, and advantages that distinguish
from similar products.
Local wisdom owned by a region should be a
selling point for micro businesses to be able to
compete in national and global level. By acculturating
local wisdom, the micro business will increase the
selling power because it has Citra and Identitas
Bangsa.
The figures described in the above confirm that
micro-enterprises must continue to be developed in
various ways, the values of local wisdom become one
of the strengthening of micro enterprises to develop
and sustain the national economy in order to be ready
for the global economy.
Based on the description a study was developed to
better understand the process of planting the values of
local wisdom in the activities of micro-enterprises
based on creative economy. This is done as an effort
to explore issues of local wisdom value in micro
business based on creative economy.
2 LITERATURE REVIEW
2.1 Creative Economy and Values Of
Local Wisdom
The affirmation of creative economy is done by
Landry and Bianchini (1995) quoted from Saksono
written in the journal of creative economy (2012)
based on their thinking that the world economy has
been shifting. If before the 20th century economies
had accumulated in manufacturing, it now shifted to
an economy derived from creativity as its main
commodity.
According to UNESCO, Creative Economy is an
industry that combines the creativity of skills and
skills to generate wealth and employment. Creative
industry is formed by creative culture, that is culture
combine creation, product and commercialization.
Products from Creative Industries are called
commercial product (commercial product) in the
form of creative goods and services.
Referring to the above, the creative economy is an
economic action that sells products or services with
innovative packaging that involves thinking, ideas,
and everything that has creativity value that makes
income and even employment. Therefore, experience,
knowledge, artistic value, technology and culture
become a foundation in this creative economy.
Local Wisdom Values in the Development of Micro Business Based Creative Economy
117

Based on the macro review, creative economy
industries contribute substantially to the national
economy. Based on statistical records the value of
creative economy has increased every year, starting
from the year 2010-2015 creative economy
contributes an average of 8% to the national income.
Governments through creative economy
institutions generally classify the types of creative
economic activities that are divided into several
activities: advertising, architecture, art, craft, design,
fashion, video, film and photography, interactive
games, music, performing arts, publishing and
printing, Computer and software services, television
and radio, as well as research and development.
According to Howkins 2009, the development of
creative economy can not be separated from the
development of local culture so that the more creative
a country to pack its culture, the country will be
stronger identity and its image that encourages the
country's economic growth. One of the key factors for
developing a creative economy is how a city is
applied as a cultural and artistic center.
Culture and art is a display of a collection of local
wisdom values that have undergone a process of
sedimentation. Local wisdom, consisting of two
words of wisdom or wisdom and local (local) or local.
So local wisdom is a local idea that is wise, full of
wisdom, good value, embedded and followed by
members of the community.
According Rahyono (2009) interpreted that "local
wisdom is the human intelligence possessed by
certain ethnic groups obtained through the experience
of society". That is, local wisdom is the result of
certain communities through their experience and not
necessarily experienced by other communities. These
values will be attached very strongly to a particular
society and that value has gone through a long time,
as long as the existence of that society.
According to Putu Oka Ngakan (Andi M. Akhmar
and Syarifudin, 2007) defines that: "Local wisdom is
the values or behavior of local people living in
interacting with the environment where they live
wisely. Therefore, local wisdom is not the same at
different places and times and different tribes. This
difference is caused by the challenges of nature and
the necessities of life are different, so that his
experience in meeting the needs of his life led to
various systems of knowledge both related to the
environment and social. As one form of human
behavior, local wisdom is not a static thing but
changes over time, depending on the order and social-
cultural bonds that exist in society ".
Meanwhile Keraf (2002) asserts that: "Local
wisdom is all forms of knowledge, belief,
understanding or insight and customs or ethics that
guide human behavior in life in an ecological
community. All forms of local wisdom are lived,
practiced, taught and passed down from generation to
generation as well as shaping human behavior
patterns towards fellow human beings, both natural
and occult "
Furthermore Francis Wahono (2005) explains
that: "Local wisdom is the intelligence and
management strategies of the universe in maintaining
the ecological balance that has been tested for
centuries by various disasters and obstacles as well as
human neglect". Based on the above definition it is
concluded that local wisdom not only stops on ethics,
but to the norms and actions and behavior, so that
local wisdom can be like a religion that guides people
in the attitude and act, both in the context of everyday
life and determine human civilization further.
Local wisdom is an element of the cultural
traditions of a people's society, which appear to be
parts that are placed in the physical order of buildings
(architecture) and the (urban) region in the geography
of the nation's. Based on some definitions of local
wisdom, at least implies some concepts, namely:
1. Local wisdom is a long experience, which is
precipitated as a guide to one's behavior;
2. Local wisdom can not be separated from the
environment of the owner;
3. Local wisdom is dynamic, flexible, open, and
always adjust to the times.
3 METHODS
The method of research used is descriptive analysis
method through qualitative approach. The use of
descriptive analysis is intended to present or describe
the findings of the field. Descriptive research is a
form of research intended to describe the phenomena
that exist, both natural phenomena and man-made
phenomena. The phenomenon may be the form,
activity, characteristics, changes, relationships,
similarities, and differences between phenomena with
one another phenomenon (Sukmadinata, 2006).
Descriptive research is a study that attempts to
describe and interpret something, such as existing
conditions or relationships, opinions developing,
ongoing processes, effects or effects, or on ongoing
trends. In this study no treatment is given or
controlled and there is no hypothesis test as contained
in experimental research. The research design is
presented in the form of chart as follows:
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
118

Figure 1: Research design
The search of data is done through observation
activities at several research sites in order to know
directly the real condition in the form of problems and
dynamics of micro business development based on
creative economy in applying the value of local
wisdom. As for the research sites are 9 districts with
a total of observed a number of 17 micro-enterprises.
4 RESULTS AND DISCUSSION
4.1 Creative Micro-Based in Cirebon
Not many business activities that run their activities
creatively in Cirebon. But with that Cirebon is a
potential city that is now being clean up to the satellite
city in eastern west Java. Micro-enterprises in
Cirebon are affected due to the demographic and
geographic contours of the Cirebon region itself.
Based on the results of the study can be described in
general that business activities in the Region Cirebon
include three types of business namely:
a) Manufacturing business, is a business entity
whose business activities to convert raw
materials into a product that can be used by the
community or the next producer. Examples:
Slippers, rattan craftsmen, convection, etc.
Micro businesses engaged in the manufacturing
sector implement creative economic activities
such as:
1) Ideas for utilizing available local materials
2) Production activities from the utilization of
residual production materials,
3) The value of creativity that arises in the
manufacture of the product.
4) Leverage the market interest to create the
product
5) Product variations are based on innovation
and product differences
6) Utilization of waste products to be made
goods that have a sale value
7) Creative processing techniques that have a
high selling value
8) Utilization and processing of processed
earth becomes more useful.
9) Connectivity to build domestic and foreign
marketing network.
10) Especially in batik, this business looks
very priority, many parties play a role in
batik development known as batik trusmi,
happened synchronization of role between
government, intellectual, and business
actor, besides creative economic activity
done also through creation of innovative
style And are in demand by the market,
thus generating a lot of demand from the
market. The role of the government is
clearly visible in the development of this
batik business, the government has made
Trusmi Village as a place of batik
localization in Cirebon, and gives a lot of
appeal to the wider community.
b) Trading business, is a business entity whose
business activity sells goods that have been
purchased. Example: culinary, traditional
hawker centre. Micro businesses engaged in
business sector implement creative economic
activities such as:
1) Harnessing the market interest to meet
their needs
2) Product variations are based on innovation
and product differences
3) Sales techniques are creative so as to
minimize the cost save
4) Connectivity and creativity to build
domestic and foreign marketing network.
5) Efficient use of information technology
media.
6) Determination of potential locations to
reach the market.
c) Business services, is a business that provides
services or services to consumers. Example:
Mini resto service, freight forwarder, barber
shop, salon and spa, merchandise, repair service
etc. Micro businesses engaged in the service
business sector implement creative economic
activities such as:
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119

1) Creative values that appear like changing
the shape, complementing the product,
giving the decoration to be more valuable
to sell.
2) Variation of services provided.
3) The design of business premises is varied.
4) Utilization of social media facilities.
5) Recycling activities utilize goods to have
economic value
The development of micro business in Cirebon
needs to get the greatest attention both from the
government or related agencies and society in order
to grow more competitive with other economic
actors. The development of micro sector in Cirebon is
a must because in terms of quantity and absorption of
micro enterprise work in Cirebon very dominate the
economy. Moreover, the Ministry of Cooperatives
and Small and Medium Enterprises is planning to
create 20 million new small and medium enterprises
by 2020.
4.2 Application of Local Wisdom in
Creative Micro-Based Business in
Cirebon
Local wisdom is a broad and comprehensive
phenomenon. The scope of local wisdom is wide and
varied, making it difficult to be limited by space.
Traditional wisdom and wisdom now differ from
local wisdom. Local wisdom places more emphasis
on the place and locality of the wisdom so it does not
have to be a wisdom that has been passed down from
generation to generation.
Local wisdom can be a wisdom that has recently
emerged within a community as a result of its
interaction with the natural environment and its
interaction with other communities and cultures.
Therefore, local wisdom is not always traditional
because it can include today's wisdom and therefore a
broader meaning than traditional wisdom.
Based on the results of the study, it was found that
the micro business activities in Cirebon were affected
by some local wisdom values that emerged in this
area. The application or influence of local wisdom in
economic activities can be seen as follows:
a) Local wisdom originating with the origin of the
region that became characteristic and can be a
competitive advantage, the origin of the region
can be used as a special identity in Cirebon
famous for the city of shrimp, city guardians,
etc. This happens because Cirebon is a coastal
area that has a main commodity shrimp. Then
this area is the region of heritage of the spread
of Islam first. Because the value of this local
wisdom has an impact on economic activity in
the form of a lot of influence in every economic
activity in Cirebon. Example: Market activities
that follow special days of religious, product
design and contaminated media designs from
the typical identity of the city of shrimp and city
guardians, such as Batik Trusmi have many
motives inspired by the characteristics of
Cirebon.
b) Local wisdom derived from routine hereditary
activities. This happens because of customs,
certain habits that certain societies believe to
carry out continuously. This is influenced by
contour and regional climate. Because the value
of local wisdom like this arises the customs and
tastes of local communities. The value of this
local wisdom has an impact on economic
activities in the form of acculturation of the
production process. Example: Making a typical
cracker Cirebon using spices and a particular
procedure, Seaweed Processing in Bandengan
Village using a special procedure performed for
generations.
c) Local wisdom derived from raw materials and
available resources. The raw materials and
resources available in Cirebon provide a value
that makes the culture and procedures that make
a value, this is a potential local potential that is
characteristic. The value of this local wisdom
affects economic activity in the form of
adjustment of production with the potential and
local raw materials available, for example: Krey
Bambu using local raw materials, Sendal
Plumbon which include batik ornament mega
cloudy.
d) Local wisdom derived from the production
system is done. This is because the traditional
local production system, as part of the effort to
fulfill the needs and management of the
workforce, is carried out in an open manner of
kinship and the empowerment of the
surrounding community. The value of this local
wisdom has an impact on economic activity in
the form of representation of spirit of gotong
royong. Example: empowerment of surrounding
communities as workers in every micro business
located in Cirebon region.
e) Local wisdom in human relations, this happens
because the local knowledge system as a result
of the continuous interaction that is built up due
to social needs. Influence on economic activity
in the form of business owner relationship
passed down from generation to generation.
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5 CONCLUSIONS
A creative economy that focuses on the creation of
goods and services by relying on expertise, talent and
creativity as intellectual property. Microenterprises in
Cirebon Region have generally conducted creative
economic activities, however not all micro enterprises
are optimally performing these activities, micro
enterprises in Cirebon region that is fairly traditional
and is a legacy business basically only do a little
innovation and creations that cause their business
Walk slowly. The application of creative economy in
micro business in Cirebon can be demonstrated by
various different characteristics, but generally
characterized by:
1. Based on ideas.
2. Unlimited development in various business
fields.
3. The constructed concept is relative
4. The occurrence of collaboration between
various actors who play a role, namely business
actors, intellectuals (intellectuals), and the
government.
Local wisdom becomes important and useful only
when local people who inherit the knowledge system
accept and claim it as part of their lives. That way,
local wisdom can be called the soul of the local
culture. It can be seen from the expression of local
wisdom in everyday life because it has been
integrated very well. Each part of the life of the local
community is wisely directed on the basis of their
knowledge system, as well as in economic activity.
Economic activities in the Cirebon region are also
characterized by the application of local wisdom,
those who run businesses strongly uphold the value
of local wisdom as evidenced by the use of local
knowledge, customary engagement (custom),
empowerment of surrounding communities, in the
economic activities they run. The value of local
wisdom gives influence in micro economic activities
in Cirebon, the three types of micro sector in Cirebon
actualize the value of local wisdom into the
production process so that the product created has
better selling value. In general, acculturation of local
wisdom values in micro business in Cirebon includes
the following:
1. Local wisdom is characterized, identity, and
made excellence product.
2. Raw materials used in production activities are
potential raw materials of the region.
3. Processes that occur in micro business activities
are hereditary.
4. Workers who enter into the production factor is
a workforce that relies on the surrounding
community as a form of soul gotong royong.
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