A Portrait of a Bussiness Management and Strategy in Developing Batik Small and Medium Enterprise (SME) in 4.0 Industrial Era

Abstract

---Small and Medium Enterprise (SME) is Indonesia’s economy pillar that is able to contribute 61,04% of the country’s economy, to provide employment for 116,9 million people and support 293 T of Indonesia’s export value (Coordinating Ministry for Economic Affairs, 2020). The challenges and obstacles faced by Batik SME are higher due to the 4.0 industrial revolution which changed the way SME survives and advances their business. The purpose of this study is to analyze the ability of Pekalogan Batik SME business management in improving business competitiveness and to analyze SME strategies to increase industrial competitiveness in facing the 4.0 industrial era. The population of this research is 24 batik artisans in Kauman batik village, Pekalongan, with saturated/census samples. The data is primary data. The research method is descriptive. The data was analyzed by using descriptive analysis technique, which was done by describing the facts of the findings. The results of the study illustrate the condition of the batik SME businesses management in Kauman Batik Village, Pekalongan. Based on the financial management, there are: 1) 74% of the artisans do not have proper business financial records, 2) 58% of the artisans do not separate business and personal finance records, and 3) 52% of the artisans have not utilized funding access provided by external parties. In terms of marketing management; 1)74% of the artisans still rely on hereditary network and 2) 74% of the artisans have not utilized the technology. Based on the HR management aspect, then: The suggested strategies for SMEs in Kauman batik village during the 4.0 Industrial Revolution era are by 1) accessing assistance and funding offered by the Government, 2) making use of soft loans offered by banks, 3) utilizing the internet technology for business marketing, and 4) understanding and using technology.