revealed that based on Presidential Decree No. 19 of 1998, MSMEs became economic activities of Indonesian people on a small scale that needed protection from unfair competition. While in the last few decades, MSME businesses have started to bloom, from home-based to intermediate-based. So, what can we distinguish MSMEs based on anyway? Check out the following explanation!

1. Based on the type of business

If we differentiate MSMEs based on the type of business, then there are 3 MSMEs, namely:

a. Culinary Business
UMKM in the culinary field is one of the most popular types of business, even by young people. Many innovations and breakthroughs are done in the culinary field. Moreover, running a business in this field also does not require a lot of capital, but has the potential to promise that the food is one of the main types of human needs.

b. Fashion business
Besides UMKM in the culinary field, UMKM in the fashion sector is also one of the most popular types of UMKM. Moreover, every year fashion trends will always change so that this becomes an opportunity for businesses to further develop their business.

c. Agricultural Business
Many people assume that agricultural business needs large tracts of land. When in fact, we can start this business from our yard. If we diligently manage it, then the benefits in this business can be very promising.

2. Based on the way the development of MSMEs
If we see how an MSME develops, then we can categorize the MSME into 4 types, namely:

a. Livelihood activities
Livelihood activities are UKM (Small and Medium Enterprises) whose function is to provide opportunities for job seekers. Therefore, livelihood activity business actors can be categorized as business actors in the informal sector, for example, such as street vendors.

b. Micro Enterprise
These types of business people are those whose daily activities are filled with making handicrafts, but they have not yet become fully entrepreneurs.

c. Fast moving enterprise
At this stage, an SME already has the characteristics of an entrepreneurship and will develop to become entrepreneurship on a larger business scale.

In running a small scale business, everything will surely start from a simple thing. However, this does not mean that MSMEs cannot develop; rather, not a few MSMEs have succeeded in proving that their potential is to expand their business.
Share : icon icon