Small business. Small forever?? A glimpse of small business in Indonesia.
1. Where
Do 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
2. 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
3. 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
4. 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?
5. 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 Professionals Very– For hiring Professionals
• To accelerate growth
• To speed up sales
• Marketing efforts
• Controlling financials
• As a result :
RARE
An UKMAn UKM todaytoday is the same as what an UKMis the same as what an UKM waswas
6. 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??
7. 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 ?
8. 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..!!
9. 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
10. Help Me Help You
• Clearly…beside money, UKM needs
extra knowledge in doing business
• HOW ?
MAKE UKMMAKE UKM
PROFESSIONAL
THROUGH
PROFFESIONALS
11. 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…
12. 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