Digitalization Strategy of Small and Medium Enterprises (SMEs) of Agribusiness Sector at North Sulawesi

Abstract

The Area Lockdown that is implemented by the government to prevent the spreading of Coronavirus has affected the society’s behavior on purchasing. The digitalization of shopping has reduced direct contact which also contributed to prevent the spread of Covid-19. In order to survive this era, small business and medium business owners needs to adapt with the situation and condition. This is a difficult task that is needed to increase the awareness of the benefits from digitalizing business and incubating them to ensure their readiness to compete. North Sulawesi is an agrarian area that needs the attention of the government to ensure the agriculture field are strong and formidable, which is one of the sectors that contribute to the province’s economy growth. This research aims to identify and recommend digitalization strategy for the small business and medium business owners in North Sulawesi. The analysis result that agribusiness SMEs are in the quadrant 1 (one). The main weakness of SMEs digitalization is that the digital literacy is still limited, internet access that is still limited, the production process that still use manual equipment, and the uncertified products. To develop the digitalization of agribusiness SMEs there is several things that could be done by the North Sulawesi government with the help of several services.