PRIORITY SECTOR OF SMALL AND MEDIUM ENTERPRISES USING AHP: A CASE STUDY OF YAMARU ENTERPRISE

Abstract

Small and medium enterprises (SMEs) play an important role in the development of a country’s economy by providing employment and using local resources; they also have the ability to quickly adapt to external and internal changes and technological developments due to their flexible nature. The development of SMEs continues to be encouraged, but there are many complex factors that impact their development, primarily focused on the lack of resources. This study seeks to determine priority sectors for developing SMEs and business units that offer the greatest potential opportunities. This study uses the AHP method, which is widely used in Multiple-Criteria Decision Analysis (MCDA). Out of the five criteria analyzed, human resources was the priority factor (28.1%) that must become the main focus for Yamaru enterprise. The results of this study can be adopted by other SMEs.