UMKM Empowerment Strategy, and Their Effect on the Economy of Village Communities

Abstract

UMKM have an important role in driving the people's economy, because most of the business actors are carried out by small communities (villages). However, the existence of village MSMEs has not developed in accordance with expectations because there are still a number of obstacles faced in empowering UMKM. The problems of UMKM themselves have a number of different potentials and characters, so that the government is not so easy in determining the UMKM empowerment program. For this reason, a comprehensive and comprehensive empowerment program is needed that is able to accommodate and overcome the various challenges faced by each UMKM. The village UMKM empowerment strategy focuses more on business development efforts through capital assistance programs, strengthening institutional capacity, education, technology transfer, and developing business networks and cooperation. Ease of access to capital is still a classic problem faced by UMKM, so UMKM are difficult to develop and have low competition . In addition, institutional strengthening such as BUMDES has not been able to become a forum that is able to mobilize and grow village MSMEs, as a result it is difficult to develop and low sustainability, and low technology transfer in producing their products, as a result it is difficult to enter modern markets.

Keywords: Strategy, Empowerment, UMKM, economy, village.

DOI: 10.7176/RHSS/12-22-04

Publication date: November 30^th 2022