Empowerment of Micro, Small, Medium Enterprise (MSME) Using SWOT Analysis

Abstract

MSMe (Micro, Small, and Medium Enterprises) become a vessel proven quite productive in reducing unemployments. This labor-intensive business does not require specific prerequisites i.e. education level, employee expertise with relatively-low business capital requirement, and simple technology uses. This sector holds crucial roles in the improvement of gross domestic product (GDP) for Indonesian economy. This study aimed to identify, analyze, and describe the growth of MSMe in Malang City. As an explorative study with descriptive-qualitative approach using SWOT analysis tool, this study found—based on SWOT analysis developed into IFAS-EFAS matrices, TOWS matrix, and SWOT Cartesian Diagram—the most suitable strategy is the S-T Strategy located on the quadrant IV of the diagram. This is a strategy that employs strength factors to overcome threat factors. Therefore, the strategy implementation is through improvements of MSMe’s products in order to compete with products in other places by continuously innovating unique product advantages.

Keywords: MSMe Empowerment, Creative Economy, SWOT Analysis

DOI: 10.7176/EJBM/13-8-07

Publication date: April 30^th 2021