MSMEs have high risk, need to apply SOP to improve product quality

MSMEs have high risks in terms of production processes and maintaining product quality, even though this sector has the potential to improve the economy, encourage job creation, and encourage fair economic growth if given adequate supports.

 

Bogor, West Java (Indonesia Window) – Micro, Small and Medium Enterprises (MSMEs), which cover 90 percent of businesses, provide more than 70 percent of jobs, and 50 percent of Gross Domestic Product (GDP) worldwide, have become the core of the economy for most people around the world.

However, according to business practitioner Syafei, MSMEs have high risks in terms of production processes and maintaining product quality.

“A simple example is the production of household-scale pastry. The first frying is definitely good, with a golden brown color and so on. And this is usually what is used for product photos. However, the results of subsequent frying are usually not as good as the first,” he said in Indonesia’s Bogor city, West Java province, recently.

This, he continued, is because MSMEs do not yet have a Standard Operating Procedure (SOP) in their production process.

“Most MSMEs do not yet have an SOP to maintain product quality, so this can be a risk for buyers and affect the running of the entrepreneur’s business,” said Syafei, who is also the President Director of PT Sarira Group Indonesia (a professional company in the field of services).

According to him, maintaining the quality of MSME products can be done in a simple way.

“For example, businesspersons can display photos of their best pastries on the kitchen wall as a reference when frying them. Or when producing a lemper (banana-leave covered) cake, the portion of sticky rice must be weighed, not only estimated as big as a fist.”

In addition to the aspect of production, capital, marketing, sales, and others, MSME businesspersons should also pay attention to the quality of their products so that they can continue to meet consumer desires and maintain their existence, Syafei said.

The United Nations (UN) states that as the backbone of society, MSMEs contribute to the local and national economy and support livelihoods, especially among poor workers, women, youth, and groups in vulnerable situations.

MSMEs have the potential to help improve the economy, drive job creation, and boost equitable economic growth if given adequate supports.

Syafei hopes that quality control would be included in the training sessions held for MSME players.

According to data from Statistics Indonesia, in 2023 the number of MSME players reached around 66 million.

The contribution of MSMEs in the country reaches 61 percent of Indonesia’s GDP, equivalent to 9,580 trillion rupiahs, and absorbs around 117 million workers (97 percent) of the total workforce.

Meanwhile, West Java alone recorded 4.4 million MSME players in this business sector.

Reporting by Indonesia Window