Could Small and Medium Enterprises (SMEs) Entering to Global Market? Evidence of SMEs in Central Java

Ana Shohibul Manshur Al Ahmad, Mulyadi

2018

Abstract

Entering the international market is a challenge especially for Small and Medium Enterprises (SMEs). Limited market access, capital, competitiveness, product standardization, managerial capability and competitive conditions that have caused the non-conducive business climate to become the main obstacle for SMEs to penetrate the global market. To achieve it, a strategy and support from various parties is needed to produce SMEs that have competitiveness and independence to be able to exist in the global market. The purpose of this study is to analyze the capabilities and conditions of SMEs in Central Java in entering the export market. This research method is purposive sampling, which a sample chosen based on certain criteria and applied according to the research objectives. The population in this study were all SMEs in Central Java with a total sample of 162 (n = 162). The results of this study indicate that SMEs have been able to penetrate export by 9.7% while others are still focused on the domestic market. Some problems that include labor unpreparedness (lack of skill labor), non-standardized products, market access, promotion and marketing systems, capital and supply chains cause low competitiveness of SME products making it difficult to penetrate international markets. The implications of this research are the need for synergy and collaboration between government, academics (colleges and secondary education), financial institutions, private sector, media and industry associations to enhance the role of SMEs through empowerment, integrated coaching, mentoring and technical support.

Paper Citation

in Harvard Style

Ahmad A. and Mulyadi. (2018). Could Small and Medium Enterprises (SMEs) Entering to Global Market? Evidence of SMEs in Central Java.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 413-421. DOI: 10.5220/0009498104130421

in Bibtex Style

@conference{unicees18,
author={Ana Shohibul Manshur Al Ahmad and Mulyadi},
title={Could Small and Medium Enterprises (SMEs) Entering to Global Market? Evidence of SMEs in Central Java},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={413-421},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009498104130421},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Could Small and Medium Enterprises (SMEs) Entering to Global Market? Evidence of SMEs in Central Java
SN - 978-989-758-432-9
AU - Ahmad A.
AU - Mulyadi.
PY - 2018
SP - 413
EP - 421
DO - 10.5220/0009498104130421