Strategic Sustainable Development With Innovation And Business Model Canvas In SMEs

Abstract

Koperasi Magar Jaya in the Kanigoro District of Blitar Regency has thirteen SMEs members. The members have equal rights and obligations, including access to capital loans, procurement of raw materials, training opportunities, and the chance to market their combined products in specific events. While all members can manage their own businesses, there is also an opportunity to sell products together in culinary centers, souvenir centers, and for special occasions. To sustain and develop the business, sustainable strategies are necessary. The research objective is to design sustainable strategies using the business model canvas and formulate solutions for the SMEs. The research methodology is qualitative descriptive, utilizing primary and secondary data sources. The analysis involves designing the business canvas as a tool for developing the Framework for Strategic Sustainable Development (FSSD). The research findings indicate key activities such as procurement of raw materials, production, packaging, and marketing. The value proposition includes standard pricing, standardized products, and attractive packaging. Key resources include raw materials, capital, equipment, machinery, and labor based on the production process. Customer relationships involve discounts on purchases, although they may not be standardized or applied equally to all customers. Consignment of products, payment terms, and free local delivery services are also provided. Channels of distribution involve direct service and can also utilize agents or souvenir centers. Customer segments include the community in need of the products, as well as agents or resellers and souvenir centers. The cost structure includes production costs and sales expenses. Revenue streams come from cash sales, sales through souvenir centers, and consignment sales