SMEs Empowerment Strategy Sector of Fisheries Marine Based on
Fish Flour in District Tojo Una-Una
Hilda Monoarfa, Rosida Panuki Adam and Rustam Abd. Rauf
Faculty of Economic and Bussines, Universitas Tadulako (UNTAD)
hildaborman@gmail.com, rosida_adam@yahoo.co.id, rustam_abdrauf@yahoo.com
Keywords: Strategy, SME Empowerment and Fish Meal.
Abstract: First year research has purpose to identify potential of empowerment of SMES and to formulate strategy of
empowering SMES of marine fishery sector based on fish meal as a supplier of local feed mixed ration of
livestock in Tojo Una-Una Regency. Samples of the study were taken by SMES by purposive sampling which
has done fish processing business in the form of fish and dried fish abon product. The analytical method used
descriptive analysis and SWOT analysis. The results showed that (a) descriptive results SMEs sector-based
fisheries and marine fish meal in Tojo Una-Una, potential revealed from the response of SMEs to the
motivation to increase the added value into fish meal is high (81.00%) , (b) empowerment fish meal-based
SMEs, the highest dimension of awareness. Next followed respectively by the dimensions of the organization,
management system, technical support and the lowest is the regeneration assistance, (c) s Strategy MSME
sector of fisheries and marine-based fishmeal in Tojo Una-Una, more focused on strategy S - O and Strategies
-T. Furthermore, the map position score IFAS (3,134) and EFAS (3,375) are strength /weakness and
opportunity/treat too high.
1 INTRODUCTION
Touna District as one of the marine fish-producing
districts in Central Sulawesi, with an average
production of 14933.70 tons / year and the number of
fishery 4,528 units (BPS Sulawesi, 2014).The
production of fisherman is partly marketed directly to
the nearest areas and exports. While small fish such
as anchovies, flat fish, and single fish in certain
seasons of production abundant and this is not utilized
maximally, even by fishermen still catch the sea has
been discarded, because according to fishermen the
price is not balanced with the cost of production
(Ishak, 2005; Suhal, 2014).
On the other hand, if observed that the market
potential of fish flour is so large, because
approximately 75% of Indonesia still imports fish
meal for the poultry feed industry. By looking in the
MP3EI, one vision of his is enhancement value added
and expansion of the value chain of the production
process and distribution of asset management and
access to (potential) natural resources, geographic
region, and human resources, through the creation of
economic activities that are integrated and synergistic
in and inter-regional economic growth centers.
Efforts to reduce the imports, then one of them
conducting coaching empowerment of fish-based
SMEs. If observed results Balitbangda study (2013),
explains that the potency poultry feed market big
enough, where the needs of feed for broilers is high
enough that 1,373,716.84 kg / cycle (22-30 days) or
an average of 125 065 Central Sulawesi , 17 kg /
cycle. F or laying hens in Central Sulawesi as much
as 57915.94 kg / month. If the feed ratio of 30% is a
manufacturer of raw materials fish meal, then it is
likely absorption of fish meal to be produced by
SMEs Fishermen can be absorbed in Central
Sulawesi. Empowerment of SMEs, will reduce the
burden on government annually imports nearly 70%
of fishmeal from other countries.
Based on the above description, and considering
the market potential of fish meal is still high enough,
then this opportunity needs to be achieved by
encouraging the Empowerment of Small and Medium
Enterprises of Sea Fishery Based Fishing Sector as
Supplier of Local Poultry Feed Mixed for Production
Efficiency and Increasing Fisherman Income in
TojoUna Regency -Una. Thus empowerment can
496
Monoarfa, H., Adam, R. and Rauf, R.
SMEs Empowerment Strategy Sector of Fisheries Marine Based on Fish Flour in District Tojo Una-Una.
In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 496-502
ISBN: 978-989-758-315-5
Copyright © 2018 by SCITEPRESS Science and Technology Publications, Lda. All rights reser ved
answer the problem of income in the fisherman sector
and other related sectors such as Mix Feed (Corn,
Kedelei, and Dedak).
Urgency Research, The production target sector
fisheries and marine Central Sulawesi has a direction
of development, which is divided into three (3) zones,
each Zone can take advantage of marketing
opportunities of very high fish meal, including
TojoUna-Una Regency, both locally and nationally.
As has been explained previously that about 75
percent of the national fish meal needs are met
through imports. Indonesia's dependence on imported
fish is an ironic fact, given Indonesia's abundant
marine resources, where fish meal is still a major
component of protein sources in feed formulations.
2 LITERATURE REVIEW
2.1 Economic Empowerment Strategy
of Fish-Based Starch Communities
2.1.1 Community Economic Empowerment
Community empowerment, Subejo and Supriyanto
(2004) mean community empowerment as follows:
Community empowerment is a deliberate effort to
facilitate local communities in planning, deciding and
managing local resources owned through collective
action and networking so that in the end they have the
ability and economic, ecological and social
independence.
Based on the above opinion, connected with the
economic empowerment of the community is an
effort to increase and strengthen the economy towards
an economically independent society. The research
related to economic empowerment has been done by
Hilda Monoarfa, et al (2015) which concludes that the
economic empowerment of local poultry-based
feeding communities in Palu City, with locus of
action research on Kaili Youth in ex-riot areas, shows
that by utilizing local feed (Maize, Bran, and Fish
Flour) the production efficiency rate reaches 35%,
compared to commercial feed.
2.1.2 Community Economic Empowerment
Strategy
According Prabowo (2003) and Jaloni (2008) there
are five strategies of community economic
empowerment program that ensures the achievement
of good results are as follows:
Awareness
In many cases in rural communities it is difficult
and even unable to recognize the potential of
themselves and the potential of the natural
resources they actually have. As a result, many
potentials are not utilized or wasteful, while the
life of society is apprehensive. Therefore,
awareness is important so that villagers know
the potential, opportunities, threats and
challenges of the future Larty (2000).
Organizing
One of the most fundamental sources of error in
the development of local community
organizations is the paternalism of planners.
When planners discover a weak traditional
institutional state then they reflect on
introducing a modern organization with uniform
shapes and patterns with other regions.
Assistance Regeneration
Each development program has a period of
implementation. During the program, people are
actively participating because there is a purpose
to be gained, such as salary / wages, short-term
employment opportunities. But after the
construction ended, the community's
participation declined even gradually
disappeared because the original purpose no
longer exists.
Technical Support
Renewal in a society generally requires
technical assistance from an outside agency that
controls the resources, information and
technology that can help accelerate the change
into reality (Tarwiyah, 2001)
System Management
Integration between related institutions is very
important both in terms of planning,
implementation, monitoring and evaluation of
activities as well as in terms of funding. Besides,
the management of the system is intended to
synergize the interests of related institutions for
it required good coordination in order to create
a good management system.
2.2 Added Value-Added Strategy of
Fish Starch Based
In the future, agro-industry (UMKM / IKM) can
become the loco of national economic growth motive.
There are at least five main reasons for this sense of
optimism (Aloni and Selealem,2008) : (1) the
processing industry is able to transform comparative
advantage into competitive advantage, which will
eventually strengthen the competitiveness of
products; (2) agro-industry products have added
SMEs Empowerment Strategy Sector of Fisheries Marine Based on Fish Flour in District Tojo Una-Una
497
value and large market share so as to affect the growth
of the national economy, (3) agro-industry has a large
linkage upstream or downstream, so as to attract the
progress of other sectors; (4) has a local raw material
base (comparative advantage) to ensure its
sustainability; and (5) the opportunity to change the
national economic structure from agriculture to
industry. (Supriyaanti and Herlina, 2012).
Further, (Wirabrata, 2000). described there are
four key elements in the development of rural
industrial ago namely (1) firm agglomeration
(cluster); (2) Increasing value added and value chain;
(3) Supplier networks through partnerships and
customers; and (4) physical and non-physical
economic infrastructure network. These key elements
play an important role in the development of a marine
fishery-based agroindustry, as well as the results of
the study of Hilda Monoarfa, dkk and Bappeda Kab.
Donggala (2007), explained that from four
dimensions (cluster, value added, value chain,
customer partnership) it turns out to simultaneously
affect 89.5% towards the development of marine-
based agro-industry business. However, the dominant
partial effect on marine-based agro-based
development is the supplier network through
partnerships, and increased value-added.
3 METHODOLOGY
The location of research in TojoUna-Una Regency,
and the target of respondents is SMEs fishery and
marine sector which has done the activity of value-
added processing process. Sampling technique using
method purposive sampling (Sekaran, 2004 and
Sugiyono, 2009). This means that sample samples
taken based on certain criteria as many as 21 SMEs.
The analytical method used is: (1) descriptive
analysis and (b) SWOT analysis to assess the
opportunities, threats, strengths and weaknesses of
SME Empowerment of Fisheries and Marine sector-
based fishmeal (Vakentesh and Krishnaveni Muthiah,
2012).
4 RESULTS AND DISCUSSION
The variables of empowerment of fishpond based
UMKM are measured based on 5 (five dimensions
are: (a) Awareness, (b) Organizing, (c) Assistance
Cadence, (d) Technical Support, and (e) Technical
Processing.
4.1 Dimension of Awareness
Tabulation of the frequency responder awareness of
SMEs to the dimensions of the four indicators, can be
presented in the following table 1.
Table 1: Respondents' response to the awareness
dimension.
Dimension of Awareness
N
Mean
X1.1. Potential of fish meal
21
4.9048
X1.2. Fishing business opportunity
21
5.0000
X1.3. Reduce imports of fish meal
21
4.9524
X1.4. The need of local livestock food
business
21
4.9048
Average
4.9405
Based on Table 1 above, it shows that of 21
respondents of UMKM average score of awareness
dimension 4,9. This implies that by understanding
how important the increase in added value for high
value products such as fish meal which in turn can
increase income for business actors from upstream to
downstream. The contribution of the highest
awareness indicator (X1.2) is that fish meal has
business opportunity, because domestic needs still
rely on import (X.13), to fulfill feed ration.
4.2 Organizing Dimension
Tabulation of the frequency of respondents SMEs to
the dimensions of organizing the five indicators, can
be presented in the following table 2.
Table 2: Respondents’ responses to organizing dimensions.
Organizing Dimension
N
Mean
X2.1. Business planning
21
4.4762
X2.2. HR settings
21
4.3810
X2.3. Unit of supervision
21
4.5714
X2.4. Capital investment
21
4.4762
X2.5. Strengthening partnerships
21
4.5238
Average
4,485
Based on Table 2 above, it shows that from 21
respondents of UMKM the average score of
organizing dimension is 4,485. This gives meaning
that by providing guidance to the organization of
MSMEs is expected UMKM has a good business
performance. Contribution of the value of the highest
organizing indicator (X2.5) is that it is very important
to develop the strengthening of partnership,
especially marketing partnership, so that the level of
SMEs' doubts can be minimized. In addition, the most
important indicator is that the oversight unit (X2.3) of
the government is mainly evaluated against the
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
498
assistance provided. The findings in the field there are
some SMEs found that the aid program is sometimes
not right on target or target but the tool can not be
used so that the benefits are less.
4.3 Dimension of Cadence Assistance
Tabulation of the frequency of respondents to the
dimensions of the regeneration assisting SMEs with
four indicators, can be presented in the following
table 3.
Table 3: Response of respondents to the dimension of
coordination cadence.
Dimension of facilitation cadre
Mean
X3.1. Sustainability of the mentoring
program
4.5714
X3.2. Active participation
4.4762
X3.3. Motivation and orientation of self-
reliance and socio-economic goals
4.3333
X3.4. Appropriate compensation
compensation
4.2857
Average
4,417
Based on Table 3 above, it shows that of 21
respondents of UMKM average score of cadreeration
dimension of mentoring is 4,417. This gives the
meaning that by conducting the program of cadreing
mentoring to MSMEs is expected that UMKM can be
accompanied by a companion in a sustainable
manner. The contribution of the highest supervisory
cadreement (X3.5) indicator is the continuity of the
mentoring program, meaning that the guidance done
by the government should not be interrupted only
until the project orientation. Termination of coaching
and mentoring should be up to the SMEs can really
be independent. In addition, another important
indicator is the active
Participation of members of the group of SMEs
(X3.2), because the results of field observations
indicate that most of the members are less active, for
various reasons, among others: interest in fish
processing (shredded) less attractive. The error when
recruiting members is less clear means the group is
built if any help is given. However, since 2015 the
government has recorded in the database, so the
formation of impromptu groups has been well
anticipated.
4.4 Technical Support Dimensions
Tabulation of the frequency responder technical
support SMEs to the dimensions of the three
indicators, can be presented in the following table 4
(Supriyati, 2014).
Table 4: Response of respondents to technical support
dimensions.
Technical Support Dimensions
N
Mean
X4.1. Supporting facilities and
infrastructure
21
4.6190
X4.2. Availability of information
technology
21
4.7143
X4.3. Business management and
production techniques
21
4.3333
Average
4,555
Based on Table 4 above, it shows that of 21
respondents of UMKM average score of technical
support dimension is 4,555. This means that by
providing technical support to MSMEs it is expected
that UMKM can master the process technically. The
highest indicator value contribution (X4.2) is the
availability of information technology. Such
information technology support such as
telecommunication network is felt very important,
because most of the territory of the cellular phone is
not yet available Hand Phone, so for marketing
information becomes obstructed. In addition, the
support of facilities and technical infrastructure
(X4.1) such as equipment for processing, raw
material preservative, and the lowest is business
management. Technical support is necessary because
the average UMKM has never done fish meal
processing, so technical support is very necessary.
4.5 Dimensions of System Management
Tabulation of the frequency of respondents SMEs to
the dimensions of the four indicators of system
management, can be presented in the following table
5.
Table 5: Responder to the dimensions of system
Management.
Dimensions of System Management
N
Mean
X5.1. Linkages / sisergergies with the
activities of other institutions
21
4.7619
X5.2. Continuous monev system
21
4.7143
X5.3. An analysis of funding needs
21
4.6667
X5.4. Coordination of related institutions
21
4.7619
Average
4.7262
Based on Table 5 above, shows that of 21
respondents of UMKM average system management
dimension score of 4.7262. This gives the meaning
that with the management of a good system of
MSMEs is expected UMKM can be built properly.
The contribution of the highest indicator value (X5.4
and X5.1 is the coordination of related institutions,
meaning that the UMKM empowerment program has
SMEs Empowerment Strategy Sector of Fisheries Marine Based on Fish Flour in District Tojo Una-Una
499
been seen running partially to the MSME group, but
on the other hand empowerment of other agencies or
agencies also in the same group, should be synergies
so that financing is more focused and efficient as well
as feketif In addition, the contribution of sustainable
monev indicator system (X5.3) The sustainable
monev system is intended to be detected as soon as
possible by MSMEs as per program or not Monev
should be done quarterly.
4.6 SWOT Analysis Strategy for
Empowerment of Small Business
Based on Fish Powder
Internal Factor Analysis Summary (IFAS) and
External Factor Analysis Summary (EFAS). Based
on the result of IFAS factor identification done, then
obtained the total score value in accordance with the
variables and indicators can be presented in Table 6
below.
Table 6: Internal Factor Analysis Summary (IFAS).
Internal factors
Weight
Rating
Weight
x
Rating
Strength (Strenght)
1
Potential of raw
materials
0.198
4.00
0.792
2
Fish processing
experience
0.192
3.00
0.576
3
Group participation
0.098
2.00
0.196
4
Group motivation for
value added products
0.197
4.00
0.789
Number of Strengths
0.685
2,353
Weakness
1
Business planning
0.055
3.00
0.165
2
HR settings
0.162
2.00
0.324
3
Local government
oversight unit
0.052
3.00
0.156
4
Strengthening of capital /
partnership
0.068
2.00
0.136
Number of Weaknesses
0.337
0.781
Number of IFAS Scores
1.00
3,130
Source: Primary data reprocessed.
Based on Table 6 above, it indicates that the
empowerment strategy of fishpond based UMKM,
showing IFAS value of 3,130 donated by score value
of strength equal to 2,353. This suggests that the
empowerment of fish-based MSEs is strongly
supported by indicators of potential raw materials, the
experience of SMEs in the field of processing, group
participation and SMEs have a high motivation to
improve the added value and diversification of
business from fish to fish meal abon. Besides the
strength factor in the empowerment strategy of
UMKM, there are also some weakness indicators.
Table 5 above, shows the value of the weakness factor
is 0.781. This suggests that business planning
indicators, local government control units on SME
groups, and strengthening of partnerships /
capitalization are essential to be improved in
accordance with the needs of MSMEs.
In addition to the strength and weakness factors
described above, it can be shown also the results of
external factor analysis as presented in Table 7 below.
Table 7: External Factor Analysis Summary (EFAS).
External Strategy Factors
Weight
Rating
Weight
x
Rating
Opportunity (Oportunity)
1
The business opportunity
is quite big
0.130
4.00
0.520
2
The import of fish meal
is quite high
0.095
4.00
0.380
3
Meet the needs of local
livestock feed
0.102
3.00
0.306
4
Compensation tenga
companion
0.081
4.00
0.324
5
Supporting facilities and
infrastructure
0.051
4.00
0.204
6
Linkage / synergy with
other activities
0.031
2.00
0.062
7
Ease of production
techniques and business
management
0.073
2.00
0.146
Number of Opportunities
0.563
1,943
Threat (Treath)
1
Information Technology
0.140
4.00
0.560
2
The monev system is not
measurable
0.130
3.00
0.390
3
Analyze funding needs
0.134
3.00
0.402
4
Interagency coordination
0.040
2.00
0.080
Number of Threats
0.444
1,432
Number of EFAS Scores
1.00
3,370
Source: Primary data reprocessed.
Based on Table 7 above, it indicates that the
empowerment strategy of fish-based UMKM,
showing EFAS value for the opportunity variables of
1,943 contributed by the first highest value of the
indicator of the business opportunity of fish meal,
import of fish flour which is high enough for the
domestic needs as the feed mix livestock, the
availability of adequate supporting facilities and
infrastructures, the ease of production techniques, and
the linkage and synergy with programs from other
agencies.
Besides the opportunity factor in the
empowerment of fish-based SMEs, there are also
some threat indicators. Furthermore, from Table 7
above, it shows the value of the threat factor in the
UMKM empowerment strategy of 1,432 contributed
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
500
by the threat value of the information technology
indicator, the unstable monev system, and the
analysis of funding needs for both working capital
and the sustainability of the assistance fund.
Based on Table 9 and 10 shows that the strategy
of empowerment of SMEs are in the SO strategy with
a value of 4.295 and Strategy ST with a value of
3,785. This indicates that the strength of UMKM is
aimed to seize the opportunity, especially that SMEs
have a high awareness of how important the increase
of added value of the product into fish meal so that
the income of UMKM increases and also can increase
fisherman income. Similarly, ST strategy that with
the strength of MSMEs is expected to avoid the threat
from the dimension of institutional management
system of UMKM (Hilda, 2014; Suhal, 2014; Larty,
2000).
4.6.1 Quadrant 1 (Aggressive Strategy)
A favorable situation because it has the power to take
advantage of existing opportunities. The most
appropriate strategy is to harness the potential applied
to the production of fish for further processing into
fish meal for livestock feed needs that can ultimately
reduce imports of fish meal.
4.6.2 Quadrant 2 (Strategy Diversification)
Despite facing various threats, in these conditions still
have strength especially on the potential availability
of raw materials and opportunities fish meal demand
is still high, it is seen from the level of imports of fish
meal that is high enough every year. However, it
should be improved its monitoring and evaluation of
sustainability of funding for sustainable
empowerment and facilitation, which during this time
only mentoring projects.
4.6.3 Quadrant 3 (Strategy Turn Around)
Tojo Una-Una have considerable opportunities as a
center for the production of animal feed, because it
has the greatest production potential for corn and
soybeans. This opportunity needs to be utilized to
meet the demand of feed market especially in Central
Sulawesi and other area by doing partnership with
farming business.
4.6.4 Quadrant 4 (Strategies Defensive)
At s state all four quadrants is very unfortunate,
because Empowering SMEs face a wide range of
external threats and internal weaknesses. For that
effort to be considered in this strategy is to minimize
the weaknesses and threats (Supriyati, 2012).
5 CONCLUSIONS
Based on the results and discussion of research, it can
be drawn some conclusions as follows. The results of
the identification of the empowerment of fish and
marine based SMEs in Tojo Una-Una, are very
potential to be revealed from the response of UMKM
to the motivation to increase the added value into fish
meal is high enough (81.00%). Empowerment of
small-scale fishmonger based on fish flour is the
highest awareness, followed by each dimension of
organizing, system management, technical support
and the lowest is kaderisasi assistance.
Strategy MSME sector-based fisheries and marine
fish meal in Tojo Una-Una, more focused on strategy
S - O and Strategy S -T. Furthermore, the position
maps of IFAS and EFAS are at the High Strength /
Weakness and Opportunity / Threat level is also high.
Dissemination, training and awareness of the
MSME sector-based fisheries and marine fish meal in
Tojo Una-Una, because the business has a high
market opportunities as local livestock feed rations
mix more efficient. Because the business position
map has a high strength / weakness and coupled with
high opportunities / threats, it should facilitate the
government in marketing partnerships and ensure the
price of food mix commodities (corn, soybeans, and
fish meal).
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