"It depends on how these entrepreneurs use the loans."
Denpasar, Bali (ANTARA News) - According to Prof DR Wayan Ramantha, an economist from Bali`s Udayana University, entrepreneurs running small and medium enterprises (SMEs) in Bali, should sell their products at competitive prices to gain dominance in the domestic market.

"It is unacceptable for products of local SMEs to be defeated by products from China and Malaysia, especially in our own market. Therefore, entrepreneurs running SMEs in Bali should offer competitive prices," Ramantha said on Friday.

According to him, these entrepreneurs should offer competitive prices, if they want to compete and maintain strong business ties in the domestic market.

He also argued that these entrepreneurs will be able to sell their products at competitive prices, since there are many banks and financial institutions that are willing to provide loans.

"It depends on how these entrepreneurs use the loans. The poor quality of human resources is one of the problems that entrepreneurs face in Bali," he expressed.

Therefore, Ramantha advised the people of Bali to reduce imports and increase exports, to boost the regional economy.

"Besides offering competitive prices, entrepreneurs should also have a workable marketing strategy," he said.

"When I say `workable marketing strategy`, it is not just limited to advertising. In fact, the best marketing strategy is to maintain the quality of the products and stick to the specified delivery period," he added.

Meanwhile, Gede Made Sadguna, Deputy Chief of Indonesia's Central Bank (BI), in Denpasar, said that strengthening SMEs in Bali is very important, since SMEs can survive economic shocks.

"SMEs remain strong, amidst economic shocks, compared to other kinds of businesses, because SMEs usually grow from small businesses, which have been through the selection process," he said.

Entrepreneurship through SMEs, according to Sadguna, should be developed to reduce the regional economic dependence on the central government.

Based on the data from the provincial government of Bali in 2011, the number of SMEs in Bali has reached 262 thousand units.

Editor: Priyambodo RH
Copyright © ANTARA 2012