Reporting from, data from the Ministry of Cooperatives and SMEs noted that there were 98.7 percent of micro-scale businesses in Indonesia. The high growth of UMKM has even contributed 36.82 percent to the GDP (Gross Domestic Product) in Indonesia. This certainly has a positive effect on economic aspects in Indonesia, for example such as increasing employment which is one of the effective solutions to reduce unemployment. However, despite experiencing rapid development, it does not mean that SMEs in Indonesia are free from obstacles. Moreover, these obstacles are not always related to funding, but also by the following things.

1. Licensing Process
Do you know that there are still many MSMEs in Indonesia that do not have permanent legal entities? In fact, if they do not have an official business permit, an MSME is at risk of experiencing difficulties to advance their business, for example to apply for capital. Investors are likely to choose MSMEs that are already registered and have official permits because they are considered more trusted.

2. The lack of business networks
In Indonesia, there are still SMEs who do not realize the importance of building a community in business. In fact, getting to know other MSME actors, especially those who have similar types of businesses will also help us to learn and exchange ideas. Not only that, a business network will also expand the opportunities of SMEs to establish cooperation and increase business expansion.

3. Not yet innovated
In the midst of rapid development, an MSME actor is required to be able to think critically so as to produce certain innovations for his business. These innovations can be in the form of variations of products sold or service quality innovations. To innovate, SMEs are advised to make observations beforehand about consumer trends.

4. The use of technology is still limited
Advances in technology basically affect all aspects, including sales. Therefore, the sales process can be done quickly, practically, and safely. One of them is using Cashlez, an mPOS application that records all payment transactions and accepts various non-cash transaction methods. Businesses no longer need to bother to calculate the amount of payment and provide change.

The challenges faced by SMEs are not limited to capital. There are other matters such as administrative and operational matters that also need attention.

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