Proposed Growth Strategy for Small Business Using the SME Soundness Assessment Method

Abstract

Small and Medium Enterprises (SME) is an enterprise activity that plays a role in increasing national income, promoting economic growth, and achieving national stability. SMEs have promoted economic growth by creating employment opportunities and balancing the economy. The increase in the number of SMEs has positively impacted the Indonesian economy, showing an overall increase of 60.43 %, and the government is being asked to reduce the SME tax to 0.5%. Unfortunately, this does not free business participants from problems that result in the ongoing business not running. To support this issue in various ways, SMEs need to know the health of their business and company. SME Soundness Measurement provides a vision of business performance from a financial such as liquidity ratio, activity ratio, loan ratio, profitability ratio, and nonfinancial such as marketing, operations, good governance, human resources. The assessment results were compared with the table AHP Calculations, final score of financial of 38.81% and non-financial aspect of 25.92%, overall score of 64.73%. The results of measuring the level of Health obtained results in Cracktive companies, which are included in the Good Soundness II” category with a A rating. Measurement the Health Level of SMEs is appropriate for Cracktive companies to determine the level of health and can be a tool for improvement.