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Micro.
Small and Medium Enterprises (MSME.
Empowerment Strategy in Pondokbungur Village.
Purwakarta Farida Apriani1 STIE Wibawa Karta Raharja Purwakarta Rhandi Rhiswandi2 STIE Wibawa Karta Raharja Purwakarta Rieva Apriliani3 STIE Wibawa Karta Raharja Purwakarta Salma Destiana4 STIE Wibawa Karta Raharja Purwakarta Correspondence : Farida Apriani .
aridaprn36@gmail.
Submited :13-01-2025.
Accepted : 13-02-2025.
Published : 13-03-2025 Abstract Micro.
Small, and Medium Enterprises (MSME.
are an important role in driving economic growth.
However, in the digital era.
MSMEs face the challenge of adapting to ever-evolving technology.
The Community Empowerment and Service STIE WIKARA conducted product enrichment and market expansion in Pondokbungur Village.
Purwakarta to optimize marketing, sales, and product calculations that are more profitable for MSME entrepreneurs.
The results of this KPPM activity provide knowledge for MSME entrepreneurs to manage more attractive packaging, calculate production costs to obtain maximum profit, expand sales networks to seminars for MSME entrepreneurs to promote their products widely through digital and increase public knowledge about the use of digitalization.
Keywords : MSMEs.
Digitalization.
Pondokbungur.
Enrichment Product.
Enlargement Product Introduction MSMEs are productive businesses or enterprises run by individuals, groups, households, or small businesses that meet the standards as micro-enterprises (Amartha, 2.
MSMEs are the main foundation of the community's economic sector, this is done to encourage the ability of independence in developing in society, especially in the economic sector.
The rapid development of MSMEs is currently supported by digital technology, increased access to e-commerce platforms, and government support through assistance programs and policies that facilitate small businesses so that MSMEs can create innovations in creating products that are in line with market trends, such as environmentally friendly and locally based products.
In addition, access to financing and ease of business licensing also accelerate the growth of MSMEs, making this sector an important pillar in the national economy and job creation.
The digitalization of MSMEs is very important because it allows these small businesses to expand their markets, increase operational efficiency, and adapt to Journal of Management https://myjournal.
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technological developments.
By optimally using digital technology in running their business.
MSMEs can gain a number of benefits, including being able to reach a larger consumer base, increase income, facilitate monitoring of business activities, and reduce costs, especially marketing, logistics, and shipping costs (Airlangga, 2.
Pondokbungur Village is located in Pondoksalam District.
Purwakarta.
This village has growing MSMEs, namely home industry convection, stalls, and Pondokbungur specialties.
Based on a survey conducted by KPPM STIE WIKARA in 2024, there were 46 MSMEs in Pondokbungur Village.
The majority of MSME actors in Pondobungur Village produce food that utilizes raw materials available in the area, namely cassava, bananas, and others.
The types of food produced vary from dry foods to wet foods such as coconut root cakes, banana chips, krewel, ali cakes, and kecimpring.
Kecimpring is one of the products produced by MSME actors in Pondokbungur Village which is made from processed cassava.
This processing is one of the drivers of the MSME economy in Pondokbungur village.
This processing makes agricultural products into products that have added value and high economic value (Fitriyani, 2.
however based on a survey conducted by KPPM STIE WIKARA to the community and MSME actors in Pondokbungur village, the problems faced by MSMEs Sales in large quantities (Bal-bala.
, cannot order in small quantities.
Does not have a product identity, such as: logo and branding.
There are no diverse flavor variants in the product.
Product marketing is still traditional.
Products are only known around Pondokbungur Village.
Lack of public understanding in online marketing through E-commerce accounts.
The community does not understand how to distribute their products widely through digital Therefore.
KPPM STIE WIKARA on this occasion will provide support in strengthening the organization in Product enrichment in the form of product innovation education, product enlargement in the form of expanding the MSME product network, and digital marketing management workshops Journal of Management https://myjournal.
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to maximize what is expected to be utilized by the community/target group to improve digital marketing performance and have an impact on increasing turnover significantly.
Methods The research and community service activities of KPPM STIE WIKARA are carried out using data collection techniques through discussions, location surveys, and research, as well as field The method of implementing this research and community service activity was carried out on July 1AeAugust 31, 2024 in Pondokbungur Village.
Purwakarta.
This program is implemented through collaboration involving the community and village officials.
Based on the problems that arise, the following is a description of the stages in implementing the solution.
There are two stages, namely: planning and implementation.
Activity planning stage Discussion Discussion with all members of the KPPM STIE WIKARA group in Pondokbungur village, this discussion was held to collect opinions and suggestions from all members of KPPM STIE WIKARA regarding the work program that will be implemented during community service activities in Pondokbungur Village.
Location Survey and Research This location survey and research aims to determine general field conditions, as well as understand the social, economic, and environmental conditions of the village.
This is done so that the programs or activities to be carried out can be designed and implemented effectively according to the needs of the Pondokbungur Village community, especially hamlet 2 which can be relied on in the context of community empowerment.
From this research survey, the main work programs were determined, namely product enrichment and product enlargement Journal of Management E-ISSN: 3026-3239 Vol.
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Activity Implementation Stage The implementation of activities is carried out in several stages, namely development.
Product enrichment, and market enlargement.
The products developed in the KPPM STIE WIKARA program for Bu Mimin's UMKM business actors are cassava chips, and for Minantu's UMKM children are Ali cakes, coconut roots, and kembang goyang.
The following is a description of the implementation of these activities:
Activities Orientation Table 1 Activity Stages Objectives Stages Analyz e the problems that Field survey exist in MSMEs, and develop strategies to solve these Product enrichment Provide knowledge to MSME actors about the importance of variations in taste, logos, branding, and help MSME actors in creating or making quality products.
Market enlargement Expand marketing networks Digital Marketing Educate the public about the importance of digitalization to facilitate online marketing.
Create a logo and product Upgrade product packaging to make it more attractive.
Add flavor variants.
Add product size to Pack the product in a smaller size (Repac.
to get greater profits.
Product distribution in various distribution channels, for example in souvenir shops.
Conduct an MSME Seminar "Implementation of Digital Marketing of MSME Products in Pondokbungur Village" to increase knowledge and expand market share.
Create an E-Commerce account (Shope.
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Register online via the NIB Results and Discussion Product enrichment and market enlargement in the KPPM STIE WIKARA program are cassava chips, ali cakes, kembang goyang, and coconut roots.
The UMKM actors used as examples for product enrichment and market enlargement are Mrs.
Mimin and Anak Minantu.
The reason for taking only these two UMKM actors is to develop food products that are most in demand by the The implementation of KPPM STIE WIKARA targeting UMKM actors in Pondokbungur Village.
Pondok Salam District.
Purwakarta Regency was attended by 28 students and was carried out for two months, namely from July 1 to August 31, 2024.
Then the researcher formulated a problem in community service based on the SWOT analysis of Pondokbungur Village as follows:
Table 2 SWOT Analysis Strength The majority of the people of Pondokbungur Village are MSME actors, utilizing existing resources to gain profit.
The products produced are very suitable to be used as souvenirs from the Pondokbungur area, the price is relatively affordable to buy.
The availability of abundant goods and the production time that does not take long allows buyers to be able to buy or order products at any time for small or larger Weakness 90% of MSME actors are old and have difficulty adapting to developments in the business world, based on observations made by researchers in the field.
MSME actors are less creative in selling their products, 10 out of 100 young people are less interested in entrepreneurship.
Usual product packaging .
, distribution networks that are still Pondokbungur Village.
Lack of knowledge on how to digitize Opportunity Threats The potential market for souvenirs and snacks The large number of competitors selling is very large and broad and market access is similar foods results in low purchasing power increasingly varied .
ffline and onlin.
and makes MSMEs less able to reach the Journal of Management E-ISSN: 3026-3239 Vol.
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https://myjournal.
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By understanding the strengths, weaknesses, opportunities, and threats.
MSMEs can formulate strategies that utilize maximum potential and overcome the challenges faced.
Through the application of SWOT analysis.
MSMEs can increase their competitiveness and business sustainability amidst increasingly fierce competition (Sunarya, 2.
From the SWOT analysis above, it can be seen that the main problem in the development of MSMEs in Pondokbungur Village is "The gap between the capabilities of MSME actors and current market opportunities".
Alternative solutions that can be done include:
Efforts to upgrade MSMEs by enriching products, developing markets and digital marketing.
Efforts to make MSMEs in Pondokbungur Village part of a company that has been working in a more advanced similar product sector.
KPPM STIE WIKARA chose alternative point one as the main work program, with that we carried out the implementation of the work program, namely product enrichment in the form of: .
flavor variations, .
packaging improvements, .
branding, and .
Product enrichment or product enrichment is carried out on cassava chips products, the initial step of change that occurs is by adding new flavor variations such as balado flavor to cassava chips.
The next step is to make changes to the product by improving the packaging accompanied by the branding and labeling process.
Here is a comparison of Bu Mimin and Anak Minantu's chip business products before and after upgrading.
Figure 1.
Product before Journal of Management E-ISSN: 3026-3239 Vol.
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Product After Comparative explanation of MSME products that have been upgraded according to alternative point 1, namely The packaging before in figure 1 is a plain product with no additional branding, logo, and flavor.
Then the upgrading that the researcher did was using plastic with adhesive using staples then changed into standing pouch packaging with clip adhesive according to figure 2.
There is a label/brand listed on the packaging.
There is a composition.
There is a contact for the business owner on the product.
There is an expiration date on the product.
There is a NIB on the product.
The packaging can be easily opened and closed again because there is a clip on the packaging.
The difference between the old and new packaging for Bu Mimin and Anak Minantu products has advantages explained in table 3.
Table 3.
Differences between old and new packaging Plastic Standing Pouch Easy to harden because the adhesive is The crispiness of the product is done using staples guaranteed because the packaging uses a If not finished, it must be stored in an Easy to store anywhere without worrying airtight container about it being scattered Difficult to distribute Ease of distribution because the packaging is not easily damaged Less attractive to customers More attractive to customers Journal of Management https://myjournal.
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Table 4 presents the calculation of the cost of production using the packaging that has been enriched on the cassava products of Mrs.
Mimin and Anak Minantu with sales of 80 packages of 100 grams used to determine the profit of cassava chips with new packaging.
Table 4.
Calculation of Business Profit for Cassava Chips Products that have been enrichednt Direct Raw Material Cost (DRMC) Raw Materials Used Price/Unit Total Price Cassava 16 kg Rp 48.
Starch Flour 5 kg Rp 50.
Salt 400 gram Rp 3.
Sugar 400 gram Rp 6.
Flavoring 10 wrap Rp 5.
Balado Seasoning 8 wrap Rp 4.
Red Chili 200 gram Rp 12.
Turmeric 100 gram Rp 1.
Cooking Oil 3 Liter Rp 42.
Total Raw Material Cost Rp 171.
Direct Labor Cost (BTKL) Worker Wages Rp 50.
LPG Gas 3kg Rp 23.
Rp 8.
BBM
Rp 10.
Rp 20.
Total Direct Labor Cost Rp 78.
Factory Overhead Cost (BOP) Plastic Pouch 80 pcs Rp 500 Rp 40.
Stickers 80 Pcs Rp 260 Rp 20.
Total Factory Overhead Cost Rp 60.
(BOP)
TOTAL PRODUCTION COST
Rp 311.
Cost of Goods Sold 1 Pcs Rp 3.
Profit 40% of COGS Rp 5.
Selling Price Rp 10.
Table 4 shows that the addition of flavor variants can increase the selling value of cassava chips in the UMKM of mother and son.
Therefore, to increase the reach of a wider market, market enlargement has been carried out by establishing relationships with souvenir shop owners and snack shops outside Pondokbungur village, namely in Purwakarta City and opening an e-commerce/online market account at Shopee.
The following is the digital marketing process and creation of an ECommerce account for the UMKM of Son and Son.
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Figure 3.
Creating an e-commerce account Figure 4.
Product Network Expansion On August 11, 2024, the KPPM STIE WIKARA team held a seminar entitled "Implementation of Digital Marketing of MSME Products in Pondokbungur Village" with Mr.
Salman Al Farisi as the This seminar contains information on how the community can promote or distribute their products widely through digital, as well as increase public knowledge about the use of digitalization.
Several discussions have been conducted independently with MSME actors Bu Mimin and MSME Anak Minantu.
The digitalization seminar involving MSME owners and young people in Pondokbungur Village was held and attended by 30 people.
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Figure 5.
Implementation of the UMKM Seminar To ensure certainty for UMKM actors in Pondokbungur village, efforts were made to create UMKM In this activity, registration of nine UMK actor business units was carried out by creating a NIB (Business Identification Numbe.
The following is the legality of one of the UMKM actors, namely Mrs.
Mimin in Pondokbungur Village :
Figure 6.
NIB of one of the UMKM actors in Pondokbungur village.
Conclusion Based on the results of community service program activities in Pondokbungur village.
Pondok Salam sub-district.
Purwakarta district, it can be concluded that the community is happy and follows several programs created by KPPM STIE WIKARA.
In addition, this activity is a form of student devotion to the community.
Based on the work program report that has been explained in the previous Journal of Management https://myjournal.
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chapter, this KPPM STIE WIKARA program which has been run as an effort to improve UMKM products in Pondokbungur village with UMKM actors, namely Bu Mimin and UMKM Anak Minantu has been implemented well.
Researchers hope that Pondokbungur villagers are aware of the importance of digitalization so that product marketing is wider through e-commerce accounts, and have an identity in business, and with the UMKM seminar that has been implemented, it can increase insight and minimize fraud that might occur when using digitalization.
References