The Analysis of Micro, Small, and Medium Enterprises (MSMEs) development through external facilitation and internal potential on former workers of Sigaret Kretek Tangan (SKT) PT. HM Sampoerna Jember

Abstract

The Micro, Small, and Medium Enterprises (MSMEs) have a strategic role in promoting economic growth and reducing unemployment in a country. This very strategic structure of this informal sector makes MSMEs as one of alternatives for moral responsibility in restructuring the Sigaret Kretek Tangan (SKT) PT. HM Sampoerna Jember, which was officially closed in 2014. To encourage the development of its business, the facilities from external factors and internal potential have a very important role. The purpose of this study is to find out how the development of MSMEs through the facilitation of the external parties and the internal potential of the Sigaret Kretek Tangan (SKT) PT. HM Sampoerna Jember; knowing the facilitation of external parties and the internal potential of the former workers of the Sigaret Kretek Tangan (SKT) PT. HM Sampoerna Jember in running MSMEs; find out how the constraints faced by MSMEs former workers of the Sigaret Kretek Tangan (SKT) PT. HM Sampoerna Jember in carrying out its business. The type of research used in this study is descriptive research with a qualitative approach. The data analysis in this study was carried out in four stages, which consisted of data collection, data reduction, data presentation, and conclusion drawing. The results of the study showed that the internal developments of MSMEs of the former workers are: the efforts to innovate production, the efforts to procure capital, the expansion of network marketing efforts, procure production facilities and infrastructure. While external development is carried out with the help of both related agencies such as Jember: Industry and Trade Service (Disperindag) and Cooperatives Small and Medium Enterproses Service (Dinkop UMKM) an extension of the government or from the Association of MSMEs in the Jember regency or at the provincial level, such as granting access to MSMEs to capital resources, providing guidance and training, increasing product promotion, expanding product marketing, providing facilities and infrastructure. On the other hand, in the development of MSMEs, the former workers of The Sigaret Kretek Tangan (SKT) PT. HM Sampoerna Jember also faces obstacles, including unstable raw material prices, limited quality of human resources, limited capital and lack of facilities and infrastructure.