The Small and Medium Enterprises Development Model Base on One Village One Product in Central Java Provinces

Abstract

The purpose of this research is to know the main constraints faced by small and medium enterprises (SMEs) who are incorporated in one village one product (OVOP) handicraft and food processing in Central Java; then find out what needs are needed to strengthen the competitiveness of SMEs incorporated OVOP Handicraft and Food Processing in Central Java and what strategies are used SMEs incorporated in OVOP Handicraft and Food Processing in the face of the enactment of MEA (free market). Key Constraints OVOP handicraft is in the latest production equipment to increase production capacity, lack of warehouse to accommodate raw materials, weak quality of human resources related to its competence. The main obstacles of SMEs OVOP food processing are weak branding, limited outlets and marketing media, dependence on the middleman/agent. Priority development strategies of OVOP handicrafts are supporting the provision of advanced technology support equipment emerges as the first priority then followed by human resource training related to effective and efficient production techniques as a second priority. The third priority is the revitalization of cooperatives as a support unit. As for development strategy for OVOP, food strategy priority is creating branding and doing vigorous promotion for the product known more widely terpilh be the first priority. Then, the second priority is always to innovate the production for the market. Moreover, the third priority is the utilization of e-commerce media to expand the marketing network.

Keywords: One Village One Product; Small and Medium Enterprises, Handicraft, Food Processing

Australian Academy of Business and Economics Review, vol 4, issue 4, October 2018, pp 252-263