Volume 2, Number 1 July 2022
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The Marketing Constrains of The Development of Cracker-Making Small and Medium Enterprises (SMEs) in The Seruyan Hilir Sub-
District
M. Zainal Arifin1, Jelita2
1,2Institut Agama Islam Negeri Palangka Raya, Palangka Raya, Indonesia, Email: [email protected]
Email: [email protected] Abstract
Seruyan Hilir District is a sub-district located on the edge of the sea, so this area produces a lot of fish and shrimp, one of which can be used as an ingredient in making fish crackers. Based on the team's research, there are 50 groups of fish cracker craftsmen in this sub-district. There are fish cracker craftsmen who have been running their activities for more than 20 years, but the results have not made much progress. Based on research from the research team, it turns out that the problem is in product marketing. In this research, the research team tries to find the cause and try to find a solution. The method in the study is Sociological Empirical with the use approach qualitative descriptive. The place study is Regency Excited because in the district this many are found by SMEs namely making shrimp crisp fish. Findings in a study this is what makes SMEs products in the Regency Excited still lost compete with product outside or from area other is still low power skills work, not yet smart develop product and still weak marketing. To resolve the problem so SME owners need to increase management so that expected can develop products to be able to compete with other areas. The problem is the more day the number of SMEs is increasing many so that need creativity new in increase quality so no lost with product outside . In management marketing need improved for example leveraging e commerce, expanding network marketing etc necessity of socialization via social media.
Keywords: Constraint, Marketing, Fish Crackers
INTRODUCTION
Indonesia, as a country that has a lot of natural wealth, has not been able to exploit its potential. Communities are required to further develop the potential that exists in themselves and in their respective areas so that their needs can still be met. To improve the welfare of the community, the role of Small and Medium Enterprises (SMEs) is very important because these SMEs are quite numerous, not only in urban areas but also in rural areas. According to the World Bank, the community's livelihood itself is very dependent on the SME sector. Most of these small businesses are concentrated in the trade, food, food processing, textile, garment, wood, and wood product sectors, as well as non-metallic mineral production.
SMEs have a fairly strong role in Indonesia's economic development and are considered the driving force of the economy of a region. This was shown when there was an
86
economic crisis in 1998, and small businesses were the group that survived the most when many large businesses went bankrupt. There are at least two things that must be understood in the SMEs study. First, SMEs themselves should be able to understand themselves well, and secondly that SMEs should be able to see the direction, relationship, and conditions created with outside parties, including the state party, which in this case is represented by the government as the organizer of the state.1Overall, the SMEs sector has accounted for around more than 50% of GDP (mostly in trade and agriculture) and around 10% of export2. BPS 2018 data also shows that SMEs have a big role in providing employment opportunities of 96.99% of the GDP formation of 60.34%. SMEs also contributed to the addition of foreign exchange in the form of export revenues of 27,700 billion and created a role of 4.86% of total exports.3
The results of the research team's interview with a fish cracker maker in the Seruyan Hilir sub-district showed that he has been in the business of making fish crackers for more than 20 years, and this he did start from his parents. However, until now, his business has not much development, and the turnover of his business from year to year is not very increasing4. likewise with other fish cracker craftsmen.
Based on this problem, the research team will conduct research, what are the real problems faced by fish cracker craftsmen in the Seruyan Hilir sub-district. So that this research does not overlap with other researchers, the research team has explored previous studies. There are several studies that are similar to this research comparison, so they do not overlap with this research.
First, Rian Hidayat5.menulis skripsi wrote a thesis with the title: " SMEs Development Strategies in the Covid-19 Pandemic Period. The results of the study state that the distribution of the Palembang city SMEs affected by the pandemic is still quite large and continues to grow and develop because Palembang City SMEs continue to build development strategies to meet needs.
1Adisasmita Sakti, Transportasi Dan Pengembangan Wilayah (Yogyakarta: Graha Ilmu, 2011), hlm.
59.
2Sakti, ibid.
3Sakti, ibid.
4Gregory Mankiw, Mankiw, Gregory, Makroekonomi Edisi Keenam, Jakarta, Erlangga, Edisi keenam (Jakarta: Erlangga, 2006), Ibid.
5 Rian Hidayat, 2021, Skripsi: Strategi Pengembangan UMKM di Masa Pandemi Covid-19, Skripsi Judul Teknik Industri, Universitas Muhammdiyah Palembang, Tidak dicetak.
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Second, Betty Eliya Rokhmah6, in research entitled: "Challenges, Obstacles, and Readiness of Online Marketing of SMEs in Nglebak Village, Tawangmangu District, Karanganya Regency," conclusion of this research are that the challenge faced by SMEs in Nglebak Village is competition. This competition can arise both from the surrounding area and from outside the region. Even now, many competitors are emerging from abroad. If this is not addressed, it will certainly make SMEs unable to compete and cannot retain their customers. The obstacle faced by SMEs in Nglebak Village is limited capital which makes SMEs less able to develop their businesses. In addition, limited knowledge related to marketing and managerial skills makes SMEs less able to develop and even tend to not change.Third, Trisnawati, in the article: "Study of Small and Medium Enterprises (SMEs) Sector Innovation with a Dynamic System Approach (Case Study on the Food Industry in Sidoarjo Regency, East Java)”7. In conclusion, SMEs in Sidoarjo Regency face two main problems in the financial aspect, among others: capital (both initial and working capital) and long-term finance for investment which is indispensable for long-term output growth.
Fourth, Isra Djabbar, Sudirman Baso8, research title "Development of Performance- Based Small & Medium Enterprises (SMEs) in North Kolaka Regency." The conclusion is the results of the study indicate that the development of small and medium enterprises (SMEs) in providing guidance and supervision to SMEs has not been running properly and properly;
this is due to employee performance, program targets that have not been met, and the availability of limited supporting facilities.
The research conducted by this research team is different from the research above;
the direction of the research carried out by this team is the marketing constraints of the development of cracker-making SMEs in the Seruyan Hilir sub-district.
6Betty Eliya Rokhmah, Tantangan, Kendala, dan Kesiapan Pemasaran Online UMKM di Desa Nglebak, Kecamatan Tawangmangu, Kabupaten Karanganya, Jurnal Filantropi: Jurnal Manajemen Zakat dan Wakaf Volume 1 , No. 1, Tahun 2020.
7Trisnawati, 2016, Kajian Inovasi Sektor Usaha Kecil Menengah (UKM) dengan Pendekatan Sistem Dinamis (Studi Kasus pada Industri Makanan di Kabupaten Sidoarjo Jawa Timur), Jurnal Akuntansi, Ekonomi dan Manajemen Bisnis Vol. 4, No. 1, July 2016, 60-67
p-ISSN: 2337-7887.
8Isra Djabbar, Sudirman Baso, 2019, Pengembangan Usaha Kecil & Menengah (UKM) Berbasis Kinerja Di Kabupaten Kolaka Utara, PUBLIKAUMA, Jurnal Ilmu Administrasi Publik 7 (2) (2019): 116- 129.
88 METHODE
This type of research is field research using a descriptive research approach so that researchers can describe the reality of phenomena that occur in the field. At the same time, the data collection technique is the technique of interview, observation, and documentation.
The location of this research is in the Seruyan Hilir sub-district, with the reason that in this sub-district, there are 17 fish cracker craftsmen registered with the Seruyan Regency Cooperative, SME, Industry, and Trade Office. While there are quite a number of unregistered cracker craftsmen, generally, those who are not registered are cracker craftsmen who have a small turnover.
Validation of data by using triangulation of sources that is comparing and checking back the degree of confidence of information obtained. This can be achieved by: (1) comparing the data from observations with data from interviews; (2) comparing what people say in public with what they say in private; (3) comparing what people say about the research situation with what they say over time; (4) comparing the situation and perspective of a person with various opinions and views of others (5) comparing the results of the interview with the contents of a related document.9 For data analysis as developed by Miles and Huberman, namely: Data Collection, Data Reduction (Data Reduction), Data Display or data presentation, and Conclusions Drawing / Verifying or drawing conclusions.10
DISCUSSION AND RESEARCH RESULTS
Seruyan Regency is one of the regencies in the province of Central Kalimantan, Indonesia. The district capital is located in Kuala Pembuang. In 2020, the district's population was 162,906 people, with a density of 10 people/km2.11 Meanwhile, the boundaries of the Seruyan district are as follows:
North : Melawi Regency, West Kalimantan
East : Katingan Regency, East Kotawaringin Regency South : The Java Sea
West : Lamandau Regency, West Kotawaringin Regency
9Lexy j. Moleong, 2014, Metodologi Penelitian Kualitatif, Bandung: Remaja, Rosdakarya, Bandung, hal. 171.
10Lexy j. Moleong, 2014, Metodologi Penelitian Kualitatif, Bandung: Remaja, Rosdakarya, Bandung, hal. 171.
11https://id.wikipedia.org/wiki/Kabupaten_Seruyan, diakses tanggal 15-11-2021 pukul 11.00 WIB.
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Astronomically, Seruyan Regency is located between 0077' South Latitude and 3056' South Latitude and between 1110 49' East Longitude and 112084' East Longitude, so this district has a tropical climate. Seruyan Regency is an expansion district of East Kotawaringin Regency. This district has an area of 16,404.00 Km2.12Seruyan Regency has 10 Districts, which are as follows:
No Sub-Districts City
1 Seruyan Hilir Kuala Pembuang
2 Seruyan Hilir Timur Pematang Panjang
3 Danau Sembuluh Telaga Pulang
4 Seruyan Raya Selunuk
5 Hanau Pembuang Hulu
6 Batu Ampar Sandul
7 Danau Seluluk Asam Baru
8 Seruyan Tengah Rantau Pulut
9 Seruyan Hulu Tumbang Manjul
10 Suling Tambun Tumbang Langkai
Source: Statistics Kab. Fun Year 2020
There
are 10 villages in Seruyan Hilir sub-district, which are as follows:
No Village KM2
1 Sungai Perlu 544
2 Kuala Pembuang II 74
3 Kuala Pembuang I 49
4 Pematang Limau 1.156
5 Tanjung Rangas 680
6 Muara Dua 475
7 Jahitan 741
8 Baung 882
9 Sungai Undang 44
10 Persil Raya 14
Source
: Data from Kelurahan/Village in Seruyan Hilir District
Understanding Small and Medium Enterprises (SMEs)
SMEs are one type of individual-owned business, there are some business entities that are legal entities, and some are not. This business entity is not independent and is not a subsidiary or branch of a company that is owned, controlled, or affiliated either directly or indirectly. Judging from the size of the workforce, Small businesses have a workforce of between 5 people to 20 people and have a turnover of at least 200,000,000 per year.
The Big Indonesian Dictionary (KBBI) explains the meaning of business according to etymology which means work, while according to terminology, it means activity by
12Ibid.
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mobilizing energy (mind and body) to achieve a certain purpose.13 Small businesses are people who dare to open jobs with their own strength but also benefit the community because they can absorb workers who need work14. According to Ina, small businesses are people's economic activities that are small in scale, have a net worth or annual sales results, as well as ownership as regulated by law15.The Role of Small and Medium Enterprises (SMEs)
The business sector is a sector that plays a very important role in Indonesia as a developing country. UKM is a business sector that gets a lot of attention from various groups because of its very dominant role in Indonesia's national development. Some of the roles of SMEs in Indonesia's national development are:
a. Absorb labor;
b. Providers of goods and services for the community;
c. Spare parts provider for medium and large-scale businesses;
d. Can reduce urbanization;
e. Utilizing regional economic resources; and f. Show the self-image of the Indonesian nation16.
In line with the above thinking, those SMEs can be placed in a complete framework for the realization of fundamental economic reform; it is necessary to have a solid footing and a comprehensive framework that underpins them. During the New Order government, the recognition of the SMEs sector only reached the conceptual order. , while in reality, the SMEs sector has been sidelined. Efforts to empower the people's economy are, in principle, a manifestation of the demands of economic development based on universal democratic values, namely, making humans objects of development with autonomy as the starting point. 17
The SMEs sector has great potential to be developed. Some of the great potentials of the SMEs sector are:
13Departemen Pendidikan Nasional, Kamus Bahasa Indonesia, (Jakarta: Pusat Bahasa, 2008), hal.
1599.
14Abdullah Ma‟ruf, “Wirausaha Berbasis Syariah,” Antasari Press, 2010, hal. 1.
15Ina Primiana, IMenggerakkan Sektor Riil UKM Dan Industri, (Bandung: Alfabeta, 2019), hal. 11.
16Suparyanto, Kewirausahaan Konsep Dan Realita Pada Usaha Keci. (Bandung: Alfabeta, 2016), hal, 30-38.
17Munir Muhammad, Peran Usaha Kecil Dan Menengah (UKM) Dalam Penciptaan Lapangan Kerja Baru,MODERNISASI, Volume 1, Nomor 2, no. juni 2005 (2005): 122.
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a. Not much dependent on external factors such as global economic turmoil, such asforeign currency debt, and imported raw materials to carry out its activities;
b. The production time (time lag) of SMEs is relatively short;
c. Relatively small capital requirements;
d. Most SMEs businesses are labor-intensive activities, so they can create jobs;
e. Has great opportunities for the development and adaptation of various technologies;
f. Filling various inefficient market niches for large companies; and g. As a support for the existence of large-scale companies.18
Cracker Craftsmen in Seruyan Hilir District
There are more than 50 groups of fish cracker craftsmen in Seruyan Hilir District, but those registered with the Office of Cooperatives, SMEs, Industry and Trade, Seruyan Regency. 2020 there are 17, which are as follows:
NO Production brand Place
1 Kerupuk Umi Kalsum Kuala Pembuang I 2 Kerupuk Ikan Dahlia Kuala Pembuang I 3 Kerupuk Ikan Rexsa Kuala Pembuang I 4 Kerupuk Mama Sandy Kuala Pembuang I
5 Kerupuk Ersyam Kuala Pembuang I
6 Kerupuk Mama Hesti Kuala Pembuang II 7 Kerupuk Mama Erwin Kuala Pembuang II
8 Kerupuk Mama Ema Kuala Pembuang II
9 Kerupuk Mama Zaki Kuala Pembuang II 10 Kerupuk Mama Tara Kuala Pembuang II 11 Kerupuk Ikan Aurora Kuala Pembuang II 12 Kerupuk Hj. Asih Kuala Pembuang II 13 Kerupuk Ikan Saidah Kuala Pembuang II 14 Kerupuk Ikan Rada Kuala Pembuang II 15 Kerupuk Mama Riyan Kuala Pembuang II 16 Kerupuk Mama Fajri Kuala Pembuang II 17 Kerupuk Ikan Putra Umi Kalsum Kuala Pembuang II
Source: Department of Cooperatives, SMEs, Industry, and Trade of Seruyan Regency.
Local Government Support for Fish Cracker Crafts
Ms. NF has held the position of Head of UKM for Seruyan Regency since 2016.
Previously, she was a staff in this UKM section. According to his explanation, in the Seruyan district, there are quite a number of craftsmen such as palm sugar, dried fish, snacks, law
18Rachmawan Budiarto, dkk, Pengembangan UMKM Antara Konseptual Dan Pengalaman Praktis.
(Yogyakarta: Gadjah Mada University Press, 2016), hal 17.
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crackers, flat crackers, cork fish crackers, shredded purun woven, shrimp paste, banana chips, and others.19 When asked by the Research Team how far the role of the Seruyan district government is in fostering Fish Cracker Crafts SMEs, Ms. NF explained as follows:1. Conducting Training
The Seruyan district government is quite concerned about the craftsmen in this area; for example, it is holding training for craftsmen so that the quality of their products is even better. This training is carried out by the provincial government because the funds for the training are only available to the first-level government, namely the Central Kalimantan Provincial Government.20 In 2019 training on making fish crackers was held in the city of Sampit, so from the Seruyan district, two people were asked to participate. Until now, the number of trainees is still small and limited due to limited funds.21
2. Assist Equipment
Furthermore, Ms. NF explained that the Seruyan district government had provided equipment to craftsmen several times, so the assistance is in the form of tools because if it is in the form of money, we are worried that it will be misused. This equipment assistance is given in rotation, meaning that those who have already received it will not be given any more.22
This assistance will be provided by related parties, so it does not have to be from the Department of Industry, Trade, Cooperatives, and SMEs. For example, in recent years, the Fisheries Service has provided assistance to artisans of flat fish crackers, mackerel fish crackers, and cork fish crackers or haruan fish. The equipment provided is large pots, large pans, stoves, and also tools to package crackers to make them look neat and elegant.
3. Assisting the Permit Process
The Seruyan district government is always active in helping craftsmen take care of permits, including by facilitating permits; for example the applications for permits can be made online now.
4. Facilitate the Distribution of Capital
The Seruyan district government always strives for SMEs in this area to develop well, for the government's capital has very limited funds. In this case, this assistance is usually from financial institutions such as banks such as the People's Business Credit (KUR)
19Hasil Wawancara dengan ibu NF, Kasi Pembina UKM Kantor Dinas Perindustrian, Perdagangan dan Koperasi Kabupaten Seruyan pada tanggal 23-06-2020.
20Hasil Wawancara dengan ibu NF,Ibid.
21Ibid.
22Ibid.
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program. This KUR program is a soft loan with no large and very small interest. This was provided by Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) 1946, and Bank Kalteng. The Department of Industry, Trade, Cooperatives, and SMEs only helps gather SMEs to disseminate KUR funds from BRI, BNI, and Bank Kalteng because the government does not have the funds to help SMEs.Fish Cracker Marketing Constraint
Marketing is a very important activity because it is the spearhead of a business.
Based on the facts in the field, the obstacles in marketing for fish cracker craftsmen in the Seruyan Hilir sub-district are as follows:
1. Marketing is still conventional
According to Mh, one of the crackers craftsmen in Seruyan Hilir district, the problem she faces as a fish cracker craftsman is marketing.
23Currently, he markets his products by displaying them in front of the house; the buyers are still the only people who pass in front of his house. In general, fish cracker craftsmen do marketing like this.
2. Fish cracker craftsmen are not good at marketing online
Internet users in Indonesia always increase every year, with an estimate now reaching 73% or there are 196 million users. However, low technological knowledge and an unskilled workforce are considered to be obstacles to digitalization for SME business actors.
According to data from the Ministry of Cooperatives, Small and Medium Enterprises (KUKM), there are 64.2 million SMEs themselves. Based on research conducted by Delloite Access Economics also shows that 36% of national MSMEs still use conventional marketing methods, and only 18% of MSMEs can use social media and websites to promote their products.24
Likewise, fish cracker craftsmen in the Seruyan Hilir sub-district marketing their products are still conventional; they are not good at marketing their products online. Even though the development of technology today has shown very rapid progress. Many things from the life sector have used the existence of internet technology. The presence of the internet has had a huge impact on human life in various aspects and dimensions. Likewise,
23Wawancara dengan ibu Mh, pengrajin kerupuk ikan di Kecamatan Seruyan Hilir tanggal 24-06- 2020.
24Insi Nantika Jelita , Literasi Digital UMKM Jadi Kendala dalam Transformasi Digital Ekonomi, Koran Antara Digital, 08 May 2021
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communication technology is a hardware device in an organizational structure that has a social value that allows individuals to collect, process, and exchange information.25The Ministry of Trade always encourages the marketing of SME products digitally.
This is supported by the fast growth of Indonesian e-commerce because 58% of the people have made digital transactions.26 The government always prepares the latest technological developments or the second wave of the digital economy to improve people's welfare. An example is by strengthening the 5G fast internet network and transmitting data through the internet network.27
3. Craftsmen do not have a drop shipper or reseller
The term reseller is taken from English; in this case, the word 're' means 'return' while the word 'seller' means the seller. So the word reseller has the meaning of reselling or reselling.28 The system used by resellers, according to management science, is included as an indirect distribution method, which means selling goods from producers to consumers through intermediaries. With this reseller, it can automatically increase sales.
CONCLUSION
The conclusion of this research is that the obstacles faced by fish cracker craftsmen in Seruyan Hilir sub-district are in the field of product marketing; the causes are: (1) Marketing is still conventional, meaning that the product is displayed in front of the house so that buyers are still very limited; (2) Fish cracker craftsmen are not good at marketing online; (3) Craftsmen do not have a drop shipper or reseller.
The suggestion given is that an easy way to overcome this problem is that fish cracker craftsmen should actively join in various exhibitions organized by various agencies to expand market reach.
25Mohamad Trio Febriyantoro, Pemanfaatan Digital Marketing Bagi Usaha Mikro, Kecil Dan Menengah Pada Era Masyarakat Ekonomi Asean, JMD: Jurnal Manajemen Dewantara Vol 1 No 2, Desember 2018 hal. 62
26https://mediaindonesia.com/ekonomi/444325/kemendag-dorong-pemasaran-produk-ukm-di-era- digital.
27 Fetry Wuryasti , Kemendag Dorong Pemasaran Produk UKM di Era Digital, Koran Antara Digital, Rabu 03 November 2021
28 Andre Kurniawan, Mengenal Apa Itu Reseller, Cara Kerjanya, dan Keuntungan yang Didapat, Koran Digital Merdeka.com, Rabu, 7 April 2021
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In addition, fish cracker craftsmen should be able to focus more on collaborating with various merchants or outlets who are able to help promote their products so that the marketing level of fish crackers will be even wider in reaching the market.REFERENCES
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