To Increase Income Can Try SME Business. A home is a place for all family members to gather. However, there are still many people who do not own their own homes. The reason is the cheap household prices. To add to the atmosphere that can buy a house, you can jump into the prospective SME business
To Increase Income Can Try SME Business. UKM (Small and Medium Enterprises) or there is also what is called UMKM (Micro, Small and Medium Enterprises) is an activity carried out by individuals or individually owned business entities. The difference with a large business can be seen from the amount of net worth of the business actor and the results of annual sales.
Reporting from Kontan, the number of business actors engaged in the micro, small, and medium category in 2018 has reached 58.87 million people. One of the micro-entrepreneurs is the most. This data comes from the National Development Planning Agency, the Central Statistics Agency, and the UN Population Fund.
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When compared with the population of Indonesia in the same year, this prediction is predicted to be around 265 million people, this figure is quite large. This means that the number of SMEs in Indonesia is very large. Although still at a micro level, the presence of SMEs is one of the driving forces for the global economy in Indonesia.
Due to limited capital, many business actors have started small businesses. Poor management and limited expertise mean that the growth rate of SMEs is usually not too fast. However, some later became large and made a decent profit.
Therefore, the SME business is the people’s choice to get out of a tough economic situation. Doing business also allows business actors to have new stages that can be set aside to buy family needs, including housing.
The strengths of UKM
Compared to large-scale businesses, SMEs have many advantages. You can optimize it to get the most out of your business. The following include:
Small and medium-sized businesses have the opportunity to execute new and unique ideas. The reason is, the business operating system is not as complicated as large companies. With fresh ideas, it is easier for business people to enter the target market and can attract potential customers.
Focus on one area
Another advantage is that it is more focused on the field that is currently being cultivated. If you are developing a culinary business, for example, you will be more easily recognized because of the main product being sold. Another advantage, you can have loyal customers.
Easy to disappoint
One of the weaknesses of large-scale businesses is that they require a large capital. However, small and medium enterprises are not the case. With minimal capital, UKM can be started. Because of this, anyone can own a business, even if the initial payoff is not very large.
Lack of UKM
Apart from having advantages, UKM also has weaknesses. What are the weaknesses of these small and medium enterprises? Check out the following reviews:
Limited Operating Budget
One of the characteristics of SMEs is that they start with small capital. This results in limited operational costs. If the funds are not clever, business actors fail to develop their business and are threatened with bankruptcy.
To run a business professionally, adequate experts are needed. However, due to limited funds, SMEs usually do not have this point. It seems that production results cannot be optimal and business is difficult to develop.
Little Production Capacity
Also, the production capacity of SMEs is usually not as much as large businesses due to a limited workforce. This makes business people unable to take all existing orders, especially on a large scale that gives a lot.