However, the problems in women MSMEs are productivity and product qualityJakarta (ANTARA) - Cooperatives and Small, Medium Enterprises (SMEs) Minister Teten Masduki lauded Micro, Small, and Medium Enterprises (MSMEs) managed by women, who sent their children to school and held potential to create a new established entrepreneurs' generation.
"Some of these women MSMEs have striven to help meet the household needs. However, if we look at the role in the family and how they can send their children to school with the income from MSMEs, we hope that young entrepreneurs will later arise from their families," he noted in a press release here, Tuesday.
Masduki stated that as many as 64 percent of the MSMEs were owned by women in the culinary sector. He also remarked that women MSMEs were one of the government's targets in order to build one million established entrepreneurs.
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"However, the problems in women MSMEs are productivity and product quality," he noted.
In connection with this matter, the government will continue to assist women in MSMEs to compete, including by facilitating access to financing not only for working capital but also for product development.
The government is also developing the concept of clustered MSMEs to increase competitiveness and product development, Masduki remarked.
"We are looking for a cluster model in which MSMEs that join the cluster could become aggregators, such as e-commerce. Within the cluster, there will be research and development to support product innovation," he explained.
The minister also expressed optimism that existing MSMEs would produce goods that already have a market share. Moreover, he reminded that President Joko Widodo (Jokowi) had instructed the central and regional governments to allocate 40 percent of the state and regional budget to purchase cooperative and MSME products.
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"The amount reaches Rp400 trillion, and this is a clear market share. MSMEs will be guided to produce goods and services whose market share already exists," Masduki stated.
Apart from the MSMEs' recovery during the post-pandemic period, the government also aims to transform MSMEs into a digital sector by targeting 30 million MSMEs to go digital in 2024. Until now, the target has only reached 19 million MSMEs.
Chancellor of Prasetiya Mulya University, Prof. Djisman Simandjuntak, stated that the digital transformation of MSMEs was not solely in the logistics sector with a platform as a base.
However, the production of MSMEs must also undergo technological changes as a key to develop small and medium enterprises.
"MSMEs must apply technology since the main source of growth is technological change. Now, we are facing an era wherein technology enters all processes needed in business,” Simandjuntak emphasized.
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Translator: M Razi Rahman, Resinta S
Editor: Fardah Assegaf
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