Get to Know More About MSMEs

Discussing about the world of business and economics must never be separated from SMEs. Do you know what is meant by MSME? Based on the Law of the Republic of Indonesia No. 20 of 2008, MSME is a Micro Small and Medium Enterprises that can be owned by individuals and individual business entities. A business can be referred to as MSME if the business has a net worth of up to 50 million excluding the calculation of the place of business and land. In addition, an MSME can also have sales results that can reach 300 million.

Meanwhile, the source of the same Law also states that an MSME may not be part of a branch alias or medium and large subsidiary. If our MSMEs have assets of 50 to 500 million with a turnover of 300 million to 2.5 billion, then our MSMEs can be categorized as small scale businesses. However, if our business already has assets worth 500 million to 10 billion and turnover reaches 2.5 to 50 billion, then our business is categorized as a medium-sized business.

In everyday life, there are various types of MSMEs that we can find easily, for example such as tire patches, rice stalls, grocery stalls, up to ATK supply shops and photocopy services. Based on the type, actually small-scale businesses are classified into 3 types, namely small industries, small-scale companies, and informal businesses. Different from small businesses, medium-sized businesses have more complex classifications, for example businesses related to export-import, agriculture, animal husbandry, plantations, as well as food and beverages.

After getting a brief explanation about MSMEs, it is now time for us to find out more about MSMEs in Indonesia. At present ukmindonesia.id notes that the structure of MSMEs in Indonesia is dominated by micro-scale businesses, which account for 98.7 percent. This seems to be a trend that has happened since 10 years ago. This means that both the government and micro entrepreneurs need to try even harder so they can develop their respective businesses and be at a higher level.

As one of the economic drivers in Indonesia, MSME actors are a potential that needs to be developed. To make it happen, it needs to be supported from various aspects, ranging from technology, capital, to expertise.