Small business. Small forever?? A glimpse of small business in Indonesia

WhereDo We Go

From Here?a glimpse on UKMa glimpse on UKM

that sometimes overlook

A CSR Opportunity to work together with UKM

By Dipo Aji Nugroho

Former 4th Gen. UKM Alumni Business Incubator at KADIN BDG

Eyes On UKM

• UKM plays as an “Indonesia’s economy life support” for more than 40% country’s income

• > 20% UKM creative industries inhabit • > 20% UKM creative industries inhabit West Java

• To date, BPPKU (as Bandung Chamber of Commerce “right hand” for UKM) has over than 2000 UKM registered & monitored

There’s just a bit of a Problem

• Not all is running well

• Mereley < 5% have good performance

• Where are the rest?• Where are the rest?

– Well, they’re mostly still creative

– Have good and quite competitive

products

– They simply don’t have the access

Access to What?

• If you say funding or else money

then you’re partly correct

• WHY IS THAT ..??

• Well,..money is mostly used for facilitating:

– More man hour / workers– More man hour / workers

– More products

– More machines

• But

– More sales ?

– More market ?

– Better financial setting ?

Let UKM worried these

problem themselves?

They Need Directions

• We don’t want to point them as conventionals in

doing business…but most of them are

• Funding is rarely used :

– For getting more Trainings

– For hiring ProfessionalsVery

– For hiring Professionals

• To accelerate growth

• To speed up sales

• Marketing efforts

• Controlling financials

• As a result :

RARE

An UKM An UKM todaytoday is the same as what an UKM is the same as what an UKM waswas

We have to stop this Pattern..!

• Not all UKM are behaved that way

• Some of them made it to the surface and successful :successful :

– Keep profiting

– Maintaining growth

• How’d they done it??

Really…..How ??

• Lots and lots of knowledge & experience

in doing business

– Up-to-date creative products

– Good marketing and sales

– Easy to read financials– Easy to read financials

– Good network

– Plenty of market access

• We surely don’t want to keep

UKM to stay small forever, do we ?

Sceptic. Is it just simply Luck

that UKM can grow that big?• Lots of opinion that UKM got big because

they have great number of orders at some

event.

• They simply at the right time & at the right • They simply at the right time & at the right

place.

• Well…..we don’t deny that. I mean an

event is part of sales effort, right?

• But what about those who doesn’t have

that kind of opportunities…or luck as we

may say ??? Pure Hard Work..!!

A Letter to You• Dear sir, I’m a start-up…but I assure you I

have one of a kind product..you should see it!

• Dear ma’am, my business is going nowhere.

It’ still the same as it was 10 years ago. What

went wrong?

• Can you help me…?• Can you help me…?

• What do I do next..?

• After this huge order…and then what?

• Right now…Money is only part of the issue

Help Me Help You

• Clearly…beside money, UKM needs extra knowledge in doing business

• HOW ?

MAKE UKM MAKE UKM

PROFESSIONAL

THROUGH

PROFFESIONALS

Help Me Help You (2)

• Supply professionals as their (UKM) buddies

• A professional can be: consultant or in-house within UKM site

• Question !!– Why not simply UKM just hire the professionals?

– I mean..they have the money

• Answer– Can you solely believe UKM will choose the right

one?

– Or yet..does it cross their mind to hire professionals? Might as well buy some machines ☺ like they always

do…

Creating Sense of Belonging Between UKM & Companies

• Think of friends who helped each other

• Companies not only funding money to UKM

• Companies act as buddies to help grow UKM business

• In what way?

– Knowledge & Experience

• Where to get this knowledge & experience?• Where to get this knowledge & experience?

– Through trainings and consultations

• Is there other way to speed things UP?

– Yes there is. Companies may select professionals to help UKM in needs

• To strengthen sense of belonging, companies may have some share of UKM business. It’s not much….but it makes you as part of UKM life

• Surely UKM will report all activities to companies as being part of their business

ReportSupport

Report

Provided &

Monitored

Monitored