Medium Small-Medium Member Group Migration (UMKM) Magetan Regency in Dealing with Asean-Free Market

Abstract

The purpose of this research are (1) to describe the empowerment of Micro, Small and Medium Enterprises (MSMEs) in Magetan Regency in increasing the competitiveness of industry in order to face ASEAN free trade; and (2) to describe the problems faced by MSMEs in Magetan Regency in improving industrial competitiveness in order to face ASEAN free trade.The target of this research is small and medium business actors, Department of Cooperatives and MSMEs Magetan District and Bappeda Magetan Regency. This research uses Participatory Action Research (PAR) method, is a research that actively involves all stakeholders in reviewing ongoing actions (where their own experience as a matter) in order to make changes and improvements in a more good.The findings of this research are as follows: (1) The empowerment of MSMEs by Dinas Koperasi and MSMEs Magetan can be grouped into 3 phases, namely: (a) Initial Phase, the indicator is the training, counseling and policy formulated related to the development of MSMEs. (b) The Participatory Phase, a process of empowerment originating from the government with the community, by the government and the community, and intended for the community; and (c) the Emancipatory Phase, where at this stage the community has been empowered and has the ability to develop its business; and (2) Some of the obstacles experienced by MSMEs in Magetan Regency in business development include lack of business capital owned by MSMEs, access to capital that is difficult to reach, less professional management, difficulties in rapid business competition, low level of innovation of MSMEs perpetrator, government policies that are less pro- MSMEs, difficult to obtain raw materials and markets that quickly change the appetite so that marketing becomes difficult.

Keywords: empowerment model, micro and small business.