The challenges faced by MSMEs today are in fact increasingly complex. Intense competition, limited access to resources, difficulty following trends, and being late to apply new technologies are some of the challenges that continue to attack MSMEs. In this case, partnerships are also a very crucial factor in the sustainability of MSMEs.
Why is it so crucial? According to Tri Weda Raharjo in his book entitled Community Economic Development Through Strengthening MSME, Cooperative and Corporation Business Partnerships, partnerships play an important role in answering all challenges to the sustainability of MSMEs. Establishing partnerships can benefit from the contribution of each MSME. Activities or work carried out together can produce efficient and effective work.
In detail, there are many benefits that can be obtained by MSMEs when carrying out the partnership principle, including;
Access to Resources
One of the main challenges faced by MSMEs is limited access to capital, technology, and extensive networks. In partnerships, MSMEs can take advantage of the resources owned by their partners, such as investment capital, infrastructure, industry knowledge and managerial skills. This enables MSMEs to overcome their own resource limitations and enhance their operational capabilities.
Product and Market Diversification
Through partnerships, MSMEs can establish relationships with partners who have different competencies and knowledge. This allows MSMEs to expand the range of products or services they offer, as well as penetrate markets that were previously difficult to reach. By partnering, MSMEs can take advantage of existing distribution networks and reach new customers.
Innovation and Increasing Competitiveness
Partnerships with large companies or research institutions can provide MSME access to the latest knowledge and technology. Through information exchange and collaboration, MSMEs can increase their innovation capacity, develop new products or services, and increase their competitiveness in the market. Partnerships can also help MSMEs adopt digital technology and optimize their business processes.
Skills Training and Development
Partnerships often involve an exchange of knowledge and experience between SMEs and their partners. Larger or experienced partners can provide training and mentorship to SMEs, helping them improve their managerial, marketing, production and financial management skills. This has a positive impact on the ability of MSMEs to face challenges and maintain sustainable operations.
Long Term Sustainability and Stability
Through partnerships, MSMEs can get greater support and minimize business risks. Partnerships can include joint marketing agreements, sharing of financial risks, or mutual support in the procurement of raw materials or distribution. This provides important stability for SMEs and helps them survive in the long term.
It is important for MSMEs to find partners who are in line with their values and business goals, and build mutually beneficial partnerships. Thus, partnerships can be a powerful tool in maintaining the growth and success of MSMEs in the midst of a rapidly changing business environment.
REFERENCE
Tri Veda Raharjo. 2018. Community Economic Development Through Strengthening MSME Business Partnerships, Cooperatives and Corporations. Surabaya: CV Jakad Publishing.
Rachmawan Budiarto, Susetyo Hario Putero, Hempri Suyatna, Puji Astuti. 2015. MSME Development: Between Conceptual and Practical Experience. Yogyakarta: Gadjah Mada University Press.
Sri Handini, Sukesi, Hartati Kanty Astuti. 2019. Empowering Village Communities in the Development of MSMEs in Coastal Areas. Surabaya: Scopindo Media Pustaka.
