The Role Of Micro Small And Medium Enterprises (MSMEs) In The Application Of Workers In Medan City (Case Study On Jalan Abdul Hakim Kampung Susuk, Medan)

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The Role of Micro Small and Medium Enterprises (MSMEs) in the Absorption of Labor in Medan City: A Case Study on Jalan Abdul Hakim Kampung Susuk

Introduction

Micro, Small and Medium Enterprises (MSMEs) play a vital role in the economic development of a country, particularly in creating jobs and stimulating economic growth. In the city of Medan, MSMEs have been identified as a key sector in absorbing labor, especially in the area of Jalan Abdul Hakim Kampung Susuk. However, despite their significant contribution to employment, MSMEs in this area still face several challenges that hinder their ability to provide better working conditions and welfare for their employees. This case study aims to explore the role of MSMEs in creating jobs in Kampung Susuk and to identify the challenges faced by these enterprises in providing better working conditions and welfare for their employees.

The Significance of MSMEs in Medan City

MSMEs have been recognized as a crucial sector in the economic development of a country, particularly in creating jobs and stimulating economic growth. In Medan City, MSMEs have been identified as a key sector in absorbing labor, especially in the area of Jalan Abdul Hakim Kampung Susuk. According to the Indonesian Government, MSMEs account for more than 99% of all businesses in Indonesia, employing more than 99% of the workforce. In Medan City, MSMEs are estimated to account for more than 80% of all businesses, employing more than 70% of the workforce.

The Challenges Faced by MSMEs in Kampung Susuk

Despite their significant contribution to employment, MSMEs in Kampung Susuk still face several challenges that hinder their ability to provide better working conditions and welfare for their employees. One of the major challenges faced by MSMEs in this area is the lack of training and assistance for MSME owners. Many MSME owners in Kampung Susuk lack the necessary skills and knowledge to manage their businesses effectively, resulting in poor working conditions and low welfare for their employees.

Another challenge faced by MSMEs in Kampung Susuk is the lack of support from local governments. Local governments in Medan City have not provided sufficient support to MSMEs in the area, resulting in limited access to training programs, capital, and business development. This has hindered the ability of MSMEs to develop sustainably and respond to the needs of the community.

The Role of MSMEs in Creating Jobs in Kampung Susuk

MSMEs have played a significant role in creating jobs in Kampung Susuk, particularly in the informal sector. Many MSMEs in this area have created jobs for local residents, providing them with a source of income and improving their standard of living. However, despite their significant contribution to employment, MSMEs in this area still face several challenges that hinder their ability to provide better working conditions and welfare for their employees.

The Impact of MSMEs on the Local Economy

MSMEs have a significant impact on the local economy, particularly in creating jobs and stimulating economic growth. In Kampung Susuk, MSMEs have created jobs for local residents, improving their standard of living and contributing to the local economy. However, despite their significant contribution to employment, MSMEs in this area still face several challenges that hinder their ability to provide better working conditions and welfare for their employees.

Conclusion

In conclusion, MSMEs play a vital role in the economic development of a country, particularly in creating jobs and stimulating economic growth. In the city of Medan, MSMEs have been identified as a key sector in absorbing labor, especially in the area of Jalan Abdul Hakim Kampung Susuk. However, despite their significant contribution to employment, MSMEs in this area still face several challenges that hinder their ability to provide better working conditions and welfare for their employees. It is essential for all parties, including MSME owners, workers, and local governments, to collaborate and find solutions to improve the quality of life and welfare in the community.

Recommendations

Based on the findings of this case study, the following recommendations are made:

  1. Training and Assistance for MSME Owners: MSME owners in Kampung Susuk need training and assistance to improve their skills and knowledge in managing their businesses effectively.
  2. Support from Local Governments: Local governments in Medan City need to provide sufficient support to MSMEs in the area, including access to training programs, capital, and business development.
  3. Collaboration between MSMEs, Workers, and Local Governments: Collaboration between MSMEs, workers, and local governments is essential to improve the quality of life and welfare in the community.

Limitations of the Study

This case study has several limitations, including:

  1. Limited Sample Size: The sample size of this study is limited to MSMEs in Kampung Susuk, which may not be representative of all MSMEs in Medan City.
  2. Limited Data Collection: The data collection for this study was limited to observation, interviews, and documentation, which may not provide a comprehensive understanding of the challenges faced by MSMEs in Kampung Susuk.

Future Research Directions

Future research directions for this study include:

  1. Conducting a Larger-Scale Study: Conducting a larger-scale study to gather more comprehensive data on the challenges faced by MSMEs in Medan City.
  2. Investigating the Impact of MSMEs on the Local Economy: Investigating the impact of MSMEs on the local economy, including their contribution to employment, GDP, and poverty reduction.

References

  1. Indonesian Government. (2020). MSMEs in Indonesia: A Review of the Sector.
  2. World Bank. (2019). MSMEs in Indonesia: Challenges and Opportunities.
  3. Medan City Government. (2020). MSMEs in Medan City: A Review of the Sector.

Appendix

The appendix includes additional information on the methodology used in this study, including the data collection and analysis procedures.
Frequently Asked Questions (FAQs) about the Role of Micro Small and Medium Enterprises (MSMEs) in the Absorption of Labor in Medan City

Q: What is the significance of MSMEs in Medan City?

A: MSMEs play a vital role in the economic development of Medan City, particularly in creating jobs and stimulating economic growth. They account for more than 80% of all businesses in the city, employing more than 70% of the workforce.

Q: What are the challenges faced by MSMEs in Kampung Susuk?

A: MSMEs in Kampung Susuk face several challenges, including the lack of training and assistance for MSME owners, limited access to capital and business development, and poor working conditions and low welfare for employees.

Q: How do MSMEs contribute to the local economy?

A: MSMEs contribute significantly to the local economy by creating jobs, stimulating economic growth, and improving the standard of living of local residents. They also contribute to the local GDP and help to reduce poverty.

Q: What is the role of MSMEs in creating jobs in Kampung Susuk?

A: MSMEs play a significant role in creating jobs in Kampung Susuk, particularly in the informal sector. Many MSMEs in this area have created jobs for local residents, providing them with a source of income and improving their standard of living.

Q: What are the benefits of MSMEs in Medan City?

A: The benefits of MSMEs in Medan City include job creation, economic growth, improved standard of living, and reduced poverty. MSMEs also contribute to the local GDP and help to stimulate economic development.

Q: What are the limitations of this study?

A: The limitations of this study include a limited sample size, limited data collection, and a lack of comprehensive understanding of the challenges faced by MSMEs in Kampung Susuk.

Q: What are the future research directions for this study?

A: Future research directions for this study include conducting a larger-scale study to gather more comprehensive data on the challenges faced by MSMEs in Medan City, investigating the impact of MSMEs on the local economy, and exploring the role of MSMEs in reducing poverty and improving the standard of living of local residents.

Q: What are the recommendations for MSME owners, workers, and local governments?

A: The recommendations for MSME owners, workers, and local governments include providing training and assistance to MSME owners, supporting MSMEs with access to capital and business development, and collaborating to improve the quality of life and welfare in the community.

Q: What are the implications of this study for policy makers?

A: The implications of this study for policy makers include the need to provide support to MSMEs, including access to training and assistance, capital, and business development. Policy makers should also prioritize the development of MSMEs in Medan City to stimulate economic growth and improve the standard of living of local residents.

Q: What are the future prospects for MSMEs in Medan City?

A: The future prospects for MSMEs in Medan City are promising, with the potential for significant growth and development. However, MSMEs in this area still face several challenges that need to be addressed to ensure their continued success and contribution to the local economy.

Q: What are the key takeaways from this study?

A: The key takeaways from this study include the significance of MSMEs in Medan City, the challenges faced by MSMEs in Kampung Susuk, and the benefits of MSMEs in the local economy. The study also highlights the need for support and collaboration between MSME owners, workers, and local governments to improve the quality of life and welfare in the community.