SME’s Development Model Based on Partnership
Eeng Ahman
Universitas Pendidikan Indonesia, Setiabudhi 229 street, Bandung, Indonesia
Keywords: SMEs, Partnership Model, Retuning Product and marketing.
Abstract: This study aims to analyze the effectiveness of the partnership model implemented between large and small
entrepreneurs. In this study focuses on the partnership model that is often intertwined between small industry
entrepreneurs and larger entrepreneurs. The method used in this research is quantitative descriptive with data
collection techniques. Through interviews and questionnaires. The number of samples is the same as the total
population of 49 SMEs in partnership with the Big Company. The scale used in this research instrument is
Likert scale. Furthermore, for the results of research is not biased and doubtfulness of the measuring
instrument must be valid and reliable. After the data is valid and reliable, then the next data analysis technique
Activities in qualitative data analysis, namely: Data Reduction, Data model and conclusion. The Results show
that MSME development partnership model Categorized as a network partnership model or building linkages
where the level of effectiveness is included in sufficient category. This finding implies that to improve the
performance of umkm required partnerships with large entrepreneurs.
1 INTRODUCTION
Small business is an integral part of the national
business world that has the potential, position, and a
very strategic role in realizing the goals of national
development. Small business with everything Its role
in development, must be developed with the spirit of
kinship, fill each other fill, mutual strengthening
between small and big business in the framework of
equity and realize prosperity as big as for all people
of Indonesia. To realize these goals, governments and
communities must work together. The community as
the main actors of development, while the
government is obliged to direct, guide, protect and
foster the business climate.
In an increasingly competitive atmosphere, the
existence of small and medium enterprises or small
industries is required to remain competitive with
other business actors, because this institution is
considered quite representative in empowering the
economy of society. One of the efforts that can be
taken to be able to compete is through cooperation in
partnership form. The Partnership means the
existence of minimal interaction and interaction
between two or more parties in which each party is a
"partner" or " Or & rdquo partner & rdquo.
Partnership is the process of seeking / forming
mutually beneficial forms of togetherness and
mutually educating each other to achieve common
interests. The Partnership is an effort to involve the
various components of either sector, community
group, government agency or non-government to
work together towards a common goal based on their
agreement, principles and roles. (Notoatmodjo,
Saptana: 2011).
Cooperation step in the form of business
partnership is a strategy to develop small industry and
morally this cooperation is needed by maximal
support from large entrepreneur side through
coaching package, and also partnership pattern which
can benefit both side equally, or handling loss which
Happens fairly. This cooperation does not manifest
itself, will still be built consciously and planned, both
at the national level and at the lower local level.
Similarly, the National Business Partnership
Movement (GKUN) is the main vehicle for
improving the ability of national entrepreneurs,
because the spearhead in facing the era of open
economy and free trade is a national
entrepreneurship. Partnership is an attitude to run a
business characterized by long-term relationships, a
high-level cooperation, mutual trust, in which
suppliers and customers cooperate with each other to
achieve common business goals. (Saparuddin M,
Basri Bodo, 2011)
The term partnership has been known by a number
of names, including strategic customeralliance,
strategic supplier alliance and partnership sourcing.
Many government programs are made for the
Ahman, E.
SME’s Development Model Based on Partnership.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 215-219
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
215

advancement of small businesses. It aims to
encourage and grow small and tough entrepreneurs
and modern, small entrepreneurs as people's
economic power and rooted in society, small
entrepreneurs capable of strengthening the structure
of a more efficient national economy. Partnerships
basically combine the activities of some business
entities, therefore a much needed organization is
needed. (Lan Linton, 2001: 53).
The partnership between Small and Medium
Industries with parties such as government, big
business, and other business actors such as road
development business that is increasing network
marketing, technology adoption, and production
efficiency. Related to efforts to maintain a mutually
beneficial and rewarding partnership relationship, the
government must be able to formulate appropriate
strategies and policies for the creation of equal
partnership relationships. A partnership is said to be
a joint venture with a medium-sized enterprise or with
a large business accompanied by fostering and
developing by a medium-sized or large-scale business
with due regard to the principle of mutual need,
mutual strengthening and mutual benefit, this is a
cornerstone of enterprise development. Partnership
that has been established in general not yet suitability
Model or pattern of partnership between concepts
with actual phenomena. The concept of partnership
that they interact with companies is not fair in the
distribution of risk or loss.
Based on this phenomenon, this study aims to
analyze how the partnership model of these
entrepreneurs contribute to the development of small
industries. Of the many models and patterns of
partnerships used, and fenced by the rules of
government regulations on partnership, how is the
mechanism of partnership pattern in improving the
development of small industries in Bandung in
particular. This review is expected to be an input in
policy making related to MSME development. The
results of previous studies conducted by Septiani, et
al (2011) and Saparuddin M (2011) suggests that
partnerships provide partnerships have a significant
effect on business performance of small
entrepreneurs and co-operatives that directly affect
income growth.
2 METHODS
The research method used in this research is
descriptive quantitative. This research puts more
emphasis on the description of a variable without
connecting with other variables, so that the
information obtained according to what conditions
exist at the time of the research. Population in this
research is all businessman home industry partner PT
X, PT Yt, and PT Z. The sample size is equal to the
total population of 49 employers, consisting of 17
employers of PT X partners, 17 business partners of
PT Y, and 15 Business partner of PT Z. Data
Collection Techniques used Observational studies,
Interviews, Questionnaire, and Literature study. In a
research the research instrument will determine the
data collected and determine the quality of the
research.
The research instrument used in this research is
questionnaire about working capital, raw material
price, and entrepreneurship behavior of small
entrepreneur home industry partner of PT X PT Y and
PT Z. Scale used in this research instrument is likert
scale. Furthermore, for the results of research is not
biased and doubtfulness of the measuring instrument
must be valid and reliable. That's why the
questionnaire given to the respondents tested the
validity and Reliability Test. After the data is valid
and reliable, then the next data anaisis technique is
Activities in qualitative data analysis, namely, Data
Reduction, Data models and conclusions.
3 RESULTS AND DISCUSSION
In general, the partnership model is grouped into two
according to Notoadmodjo (Saptana: 2011) ie model
I and II. Model I is more focused on the network
relationships are not too solid, while model II is a
more solid working relationship partner and planned
together among partners.
Partnership within Indonesian society is
something that is not unfamiliar to implement,
because this nation has known partnership since
centuries, albeit on a modest scale, to a very large
complex scale. Partnership in the implementation of
modern management understanding of the program
management, understanding the development
strategy of inter-institutional programs bermitramer
is the main factor that must first be a concern. The
lack and advantages possessed by each institution /
person that is imaged as a form of cooperation to
cover each other, mutually add, and mutual benefit
(mutualism). Partnerships can be made in technology
transfer, knowledge transfer / skills, transfer of
resources (human), learning transfer, capital transfer,
or various things that can be matched so as to
integrate in the form of intact.
The model used in the partnership relationship
between large companies and their partners is the
simplest partnership model is in the form of
networking networking) or building linkages. This
partnership is networked only. Each partner has its
own program ranging from planning, implementation
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
216

to evaluation. The network is formed because of the
service equation or service target or other
characteristics. To become a bigger corporate partner
company, in this case PT X, PT Y and PT Z certainly
not easy. Not a few small industries that want a
partner position, which is essentially the equivalent of
a large company. Some criteria or requirements for
small industry owners who will be partners of PT X
PT Y and PT Z are as follows: The business has been
running for a year, submit photocopy of Identity Card
, submit a photocopy of Family Card , submit
photocopy of marriage certificate / divorce Submit a
4x6 photo, submit photocopies of electricity bills,
water and telephone, submit Certificate of Business (
, submit a sample (sample) of the product in
accordance with the request of the parent company,
whose overall production in production
independently by small industry entrepreneurs,
submit Taxpayer Identification Number and keep the
good name and secret of the parent company
After qualifying, the survey and credit risk
analysis of each prospective partner assisted by the
Micro Credit Analyst staff of the parent company,
small entrepreneurs who are in compliance with
Standard Operating Procedure (SOP) will be
contacted by the company. Having officially become
a partner of the company, small entrepreneur Shall
comply with all rules concerning the mechanism of
partnership and maintaining good name and all
corporate secrets. Similarly, the parent company will
grant the rights of partners. Being a company
partnered with a larger company, certainly based on
several factors. According to the results of research
surveys and observations that have been done, there
are several dominant factors that influence small
industry entrepreneurs decide to partner.
Another reason that entrepreneurs have partnered
as such has been contracted. This partnership is
networked only. Each partner has its own program
ranging from planning, implementation to evaluation.
Only the product evaluation is done by the parent
company. This partnership model is a partnership
model that essentially entrepreneurs of small industry
partners have full responsibility for their production.
Small companies are free to establish business with
any party to get input production. There is no parent
company's intervention in the manufacture of the
product, except for the last quality control performed
by the parent company, or the term "return".
Table 1: Percentage of Reasons for Small Industry
Entrepreneurs Doing Partnership
Main Factor
Precentage
Increase Revenue tan
41%
Work Connection
15%
Ease Job and Marketing
26 %
Minimize Risk
12 %
Others
6 %
Source: Research Result, processed data
In modern management, both in the development
of human resources and institutional development /
partnership, partnership is one of the usual strategies
taken to support the successful implementation of
modern management. Partnerships are not simply
translated as a partnership, but partnerships have a
pattern, have a strategic value in realizing the success
of an institution in applying modern management.
The pattern of partnerships that occur in a network
linkages model is the pattern of sub-contractors.
Figure 1: Network Partnership Model (Building Linkages)
The pattern of subcontractors is a system that
describes the relationship between big business and
small or medium enterprises, where big business
Namely PTX, PT Y and PTZ as parent company
(parent firm) requested to small or medium
businesses as subcontractors to do all or part of the
work (component) with full responsibility to the
parent company. It can also be said that in the pattern
of subcontracting, small businesses produce goods
and or services that are components or parts of
production of medium-sized enterprises or large
Parent
Company
Parthershi
p I
Supliy of
Row
material
Production
Process
Quality
Control
Package
Partnershi
p II
Supply of
row
material
Production
Process
Quality
Control
Package
Partnershi
p III
Suplly of
Row
material
Production
process
Quality
Control
Package
SME’s Development Model Based on Partnership
217

enterprises. Therefore, through this partnership,
medium and / or large businesses provide the widest
opportunity for small businesses to produce their
products.
The responsibilities of the partners are: All the
raw material needs of the production process, such as
cowhide, synthetic leather, mica, glue, pvc fabric,
ribbon, yarn, border, and other materials. All
equipment and equipment for the manufacture of
products, namely sewing machines, other tooling
machines, and manufacturing sites are fully
determined by the partners. Finding, selecting and
selecting production labor. The benefits that can be
obtained in partnership with subcontracting patterns,
for small industrial companies, among others
Stabilize and increase sales, always receive orders
from the parent company with the intensity of time
that can be said to be sure. The opportunity to work
on all production guidance and technical capabilities
of production or management, acquisition, fostering
and upgrading of necessary technologies. Increasing
production has implications for increasing output.
Hone the ability of the independence of partner
companies in running the business, both in terms of
providing input to the production process. As for
large companies (parent company) is able to focus
attention on the part Etc., fulfilling capacity
shortages, obtaining a source of supply of goods at a
lower price than imports, while also increasing
productivity and employment opportunities for both
small and large companies.
Figure 2: Partnership Pattern Subcontractor
Figure 2 shows that the pattern of subcontractors
in addition to benefiting small entrepreneurs, the
pattern of subcontractors have a benefit for large
companies is able to focus attention on the part Etc.,
fulfilling capacity shortages, obtaining a source of
supply of goods at a lower price than imports, while
also increasing productivity and employment
opportunities for both small and large companies.
However, in this pattern the small industry employers
of PT X, PT Y and PT Z do not receive any assistance
from the parent company. Because the partner
position is structurally equivalent to the parent
company.
4 CONCLUSIONS
Based on the result of discussion that The partnership
model for the development of small industry partners
of PT X, PT Y and PT Z is categorized as a network
partnership model or building linkages where
partners have their own programs ranging from
planning, implementation to evaluation in corporate
activities And have full responsibility for the
sustainability of production. This finding implies that
to improve the performance of umkm it is necessary
to partner with big businessmen. For further research,
it is necessary to make additional indicators of the
success of the partnership, as well as to compare the
results of the partnership programs undertaken by
private companies with partnership programs
undertaken by State-Owned Enterprises (BUMN).
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