Besides Capital, These Are the Challenges MSME Owners Must Face

In Indonesia, MSME is one of the business drivers whose numbers are increasing. This has a positive effect, which is to open up employment opportunities for human resources. However, the progress of MSMEs did not make it free from challenges such as capital problems that could hamper business. In addition to capital, SMEs can also face the following problems.

1. Licensing Affairs
   Do you know that in Indonesia, there are many MSMEs that do not have a clear legal entity? In fact, not having an official business license can be at risk of smooth running a business. Because of this one thing, other matters at MSMEs can also be hampered, for example when they want to apply for capital and market products.
   
2. Tax Payment
   In addition to taking care of licensing, other regulatory matters that also often cause problems among MSME owners are regarding tax payments. Online-pajak.com notes that there are only 2.5% of the 60 million SMEs in Indonesia who have reported income tax. This shows that the level of tax awareness that is naturally their responsibility is still minimal and for that, the SMEs need to get more socialization.
   
3. Lack of Innovation
   In the midst of intense business competition, including on the MSME scale, MSME actors must always be open-minded and intelligent in looking for opportunities. Someone who does not follow developments and market needs will certainly be difficult to survive. That way, they will easily create innovations, both in terms of the production of goods and services and in terms of services.
   
4. Lack of Use of Technology
   Even though it is still on a small scale, this does not mean that MSMEs do not need technology. Instead, technology, for example which facilitates the payment process, will help SMEs to improve the quality of their services. With Cashlez, they can receive a variety of non-cash payments, both using cards, namely debit and credit, and those using QR Codes.