Strategy For The Department Of Cooperative Small And Medium Enterprises In The Empowerment Of Go Digital Micro Business Actors In Medan City

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Introduction

The Department of Small and Medium Enterprises Cooperatives (UKM) in Medan has a crucial role in empowering micro businesses through the use of digital technology. However, in practice, the strategies implemented in this empowerment are still not effective. There are several aspects that are challenges, such as lack of digital-based training, adequate production equipment assistance, and limited access to the digital market. With the background of poverty phenomena that are still a big problem in Indonesia, empowerment through micro, small and medium-sized (MSMEs) is one of the solutions that can help overcome these problems.

The Role of MSMEs in Economic Development

MSMEs have a very vital role in economic development, especially in the Covid-19 Pandemic period when many of them experienced negative impacts. Through this research, the strategy of the UKM Cooperative Office in empowering digital-based micro-businesses (Go Digital) in Medan will be explored more deeply. This study uses a descriptive method with a qualitative approach, where data collection techniques are carried out through interviews, observation, documentation, and literature studies related to empowerment strategies.

Empowerment Strategies: A Theoretical Framework

Analysis uses Friedmann's theory of three dimensions of empowerment: creating a conducive climate (enabling), strengthening potential (empowering), and protecting empowerment (protecting) shows several significant findings. In the Enabling Dimension, the UKM Cooperative Office has conducted training to increase the understanding of micro business actors regarding digitalization. However, this training is not carried out routinely and the lack of post-training monitoring is a separate obstacle.

Enabling Dimension: Creating a Conducive Climate

The UKM Cooperative Office has conducted training to increase the understanding of micro business actors regarding digitalization. However, this training is not carried out routinely and the lack of post-training monitoring is a separate obstacle. The training provided is not sufficient to equip micro business actors with the necessary skills to adapt to the digital era. Moreover, the lack of digital-based training facilities and equipment is a significant challenge.

Empowering Dimension: Strengthening Potential

Although the UKM Cooperative Office provides production equipment assistance, the equipment provided is still in the old version and is insufficient to meet the current production needs. Access to market opportunities through exhibitions and e-commerce is also not evenly distributed, resulting in inequality among SMEs. Furthermore, the lack of clear standard operating procedures (SOP) in empowerment programs such as Saka Sanwira causes inequality in the participation of micro business actors.

Protecting Dimension: Protecting Empowerment

The lack of clear standard operating procedures (SOP) in empowerment programs such as Saka Sanwira causes inequality in the participation of micro business actors. The UKM Cooperative Office has not established a clear and transparent system for monitoring and evaluating the effectiveness of empowerment programs. This lack of transparency and accountability has resulted in a lack of trust among micro business actors.

Conclusion and Recommendations

The conclusion of this study is the need to improve the empowerment strategy by conducting digital-based training routinely and structured, providing modern and adequate production equipment assistance, and opening more fair market access through e-commerce and exhibitions. This effort is very important to increase the competitiveness and independence of MSMEs in the city of Medan, so they can adapt and develop in this digital era.

Recommendations for the UKM Cooperative Office

The UKM Cooperative Office in Medan is recommended to:

  • Conduct digital-based training routinely and structured to equip micro business actors with the necessary skills to adapt to the digital era.
  • Provide modern and adequate production equipment assistance to meet the current production needs of micro business actors.
  • Open more fair market access through e-commerce and exhibitions to reduce inequality among SMEs.
  • Establish a clear and transparent system for monitoring and evaluating the effectiveness of empowerment programs.

Conclusion

By implementing a more effective strategy, the UKM Cooperative Office in Medan is expected to be able to empower micro businesses optimally, make a real contribution in poverty alleviation, and encourage sustainable economic growth. The empowerment of micro businesses is crucial for the economic development of Medan city, and the UKM Cooperative Office has a significant role to play in this process.

Q1: What is the main objective of the Department of Small and Medium Enterprises Cooperatives (UKM) in Medan?

A1: The main objective of the UKM Cooperative Office in Medan is to empower micro businesses through the use of digital technology, increasing their competitiveness and independence in the city of Medan.

Q2: What are the challenges faced by the UKM Cooperative Office in empowering micro businesses?

A2: The UKM Cooperative Office faces several challenges, including lack of digital-based training, adequate production equipment assistance, and limited access to the digital market.

Q3: What is Friedmann's theory of three dimensions of empowerment?

A3: Friedmann's theory of three dimensions of empowerment includes creating a conducive climate (enabling), strengthening potential (empowering), and protecting empowerment (protecting).

Q4: What is the Enabling Dimension of Friedmann's theory?

A4: The Enabling Dimension of Friedmann's theory refers to creating a conducive climate for empowerment, which includes providing digital-based training and post-training monitoring.

Q5: What is the Empowering Dimension of Friedmann's theory?

A5: The Empowering Dimension of Friedmann's theory refers to strengthening potential for empowerment, which includes providing modern and adequate production equipment assistance and opening fair market access through e-commerce and exhibitions.

Q6: What is the Protecting Dimension of Friedmann's theory?

A6: The Protecting Dimension of Friedmann's theory refers to protecting empowerment, which includes establishing a clear and transparent system for monitoring and evaluating the effectiveness of empowerment programs.

Q7: What are the recommendations for the UKM Cooperative Office to improve the empowerment strategy?

A7: The recommendations for the UKM Cooperative Office include conducting digital-based training routinely and structured, providing modern and adequate production equipment assistance, and opening more fair market access through e-commerce and exhibitions.

Q8: How can the UKM Cooperative Office ensure the effectiveness of empowerment programs?

A8: The UKM Cooperative Office can ensure the effectiveness of empowerment programs by establishing a clear and transparent system for monitoring and evaluating the effectiveness of empowerment programs.

Q9: What is the expected outcome of implementing a more effective strategy for the UKM Cooperative Office?

A9: The expected outcome of implementing a more effective strategy for the UKM Cooperative Office is to empower micro businesses optimally, make a real contribution in poverty alleviation, and encourage sustainable economic growth.

Q10: Why is the empowerment of micro businesses crucial for the economic development of Medan city?

A10: The empowerment of micro businesses is crucial for the economic development of Medan city because it can increase the competitiveness and independence of MSMEs, contributing to sustainable economic growth and poverty alleviation.