GOVERNMENT MOTIVATE SMALL BUSINESS TO COLLABORATE WITH MODERN RETAILERS

The Ministry of Cooperatives and Small Business [UKM] again facilitated small-and-medium business to be engaged with modern retail companies in the capacity as supplier of products. Monitoring by the Ministry unveiled that the typical problem faced by UKM in a collaboration was that the strong always overpowered the weak. UKM was always the loser although the shared business grew in size. Supposedly UMKM partnership in general trading was based o shared business opportunity accessible by UMKM to expand market through collaboration with modern retailers.

               

Neddy Rafinaldy Halim, Deputy Head of Marketing and Business Networking and UKM stated in on Friday [31/5] that infect partnership was something commonplace and natural In business. He said that no business player was bound to collaborate with an other player, not excepting micro and small business. “For that matter we encourage UKM to collaborate in partnership with modern retailers’ he said

               

Rafinaldy disclosed that the government encouraged partnership between cooperative societies and micro-small-and-medium business [UMKM] to enhance understanding of green products and marketing opportunity of green products. Rifinaldy said that through government facilitation for cooperative between UMKM and big retailers in selling eco-products, players of the real sector should be ready to collaborate with big retailers. The UMKM were entrepreneurs who had successfully developed business in eco-products like handicrafts from recycled raw materials, natural batik colorant, and furniture made of raw materials stipulated as protected by the law.

               

He remarked further that meeting of players of the real sector and big retailers would build better comprehension of eco-products among nurturers or regional government, KUMKM, big retailers, and related institutions. Meeting would be facilitated for UMKM with big retailers, a hundred of them, of various provinces.

               

The objective of conducting the forum was to expand marketing network base on sub-contracting platform between KUMKM and big retailers. He disclosed that the Ministry and UKM were ready to accommodate UKM whose eco-industry was based on green raw materials. He admitted that the process toward eco green industry must be exercised gradually. However, UKM must be constantly motivated to produce green products.

               

The ministry of cooperatives and UKM estimated that growth of national entrepreneurs based on growth ration in the past 3 years might come to 2.5% of total population or 6,128,655 people. The figure was a target to be met by government: it was also an increase of 1.56% or 3,707,205 people by 2012. Meanwhile in 2011 the number of businesspeople in Indonesia was only posted at around 57,339 people.

               

The Ministry of UKM and Cooperatives enhanced growth of entrepreneur through National Entrepreneurship Movement [GKN] which had entered the third year. With support of programs of other institutions to attain 2% of entrepreneurs, the government was optimistic that the target would be met. He disclosed that he was trying hard to drum up more entrepreneurs by focusing on the young generation. The capacity and quality of young entrepreneurs were potentials to be builder of the nation’s further. The number of youngsters between the age of 16-30 years were great potentials. (SS) 

Business News - June 05,2013