The impact of small business management on the improvement of business performance

Cuma Orang Biasa
Konten dari Pengguna
11 Juli 2018 15:53
Tulisan dari Rosidi Pratama tidak mewakili pandangan dari redaksi kumparan
The impact of small business management on the improvement of business performance (64257)
Small businesses play a very important role in improving the economy in both developed and developing countries. In developed countries, small businesses are important because they are the group that absorbs the most labor and on the other hand its contribution to growth of gross domestic product (GDP) is higher compared to the contribution of big enterprises.
In Indonesia the strategic role of small businesses is also very significant. The contribution of small businesses towards Indonesia's Gross Domestic Product (GDP) is increasing every year. Based on survey results and Central Bureau of Statistics (BPS) calculations, the contribution of SMEs to GDP (without oil and gas) in 2007 was 62.71 percent and in 2008 its contribution increased to 64.47 percent. Undang-Undang (Act) No. 20 Year 2008 on Micro, Small and Medium Enterprises (SMEs), is the foundation of government policy to encourage small and medium enterprises. As stated, it is necessary to conduct comprehensive and sustainable measures for SMEs to grow through conducive climate, equal business opportunity, and development as widely as possible.
Small enterprises are expected to take greater contribution as currently being held by the big businesses in realizing economic growth, equity as well as people's incomes, job creation, and poverty alleviation. Most small businesses have little chance to survive in this competitive world. There have been many efforts that has been done by various parties including the government in order to push the economy. The problem faced is not solely the on the availability and adequacy of capital. Other factors such as organization management, and low quality of input, process until output is thought to be the major factors. Therefore, for small businesses to be optimal, owners should manage it well so as to improve the performance of the business.
The Effects of Money Management towards Business Performance
Financial management has a significant effect on the business performance. This means that the better the financial management of business will further improve the performance of its business. Broomley (2000) presented that the weak capital will affect the performance of SMEs business so that the goods sold quality is also low. Good financial management will improve business performance. Incoming and outgoing financial entry systems in business will improve business performance. Business money will be well controlled so as to avoid the deviations in the management of business finances, avoid the mixing of business finances with family finances. Good financial management will facilitate business actors in allocating and planning financial use and avoiding the mistakes of allocating business funds.
The Effect of Human Resources Management towards Business Performance
Human resources are an important factor for any business including in the food sector. The success of pastry business to deal with imported products is determined by the ability of the business actors to develop their business products so that they can still exist. The main weakness of the development of small and medium enterprises in Indonesia is due to lack of human resource skills. The management is relatively traditional. Therefore, in business development, it is necessary to improve the training for business actors both in the aspect of entrepreneurship, administration and knowledge as well as skills in business development. Improving the quality of human resources is done through various ways such as education and training, seminars and workshops, on the job training, apprenticeship and business cooperation. In addition, it should also be given the opportunity to apply field training results to practice theory through the development of pilot partnerships (Hafsah, 2004). In addition, one form of human resource development in the SME sector is assistance. Mentoring SMEs is necessary and important. The main task of this companion is to facilitate the learning process or reflection and become a mediator for strengthening the partnership. All you need to think about is who will be the most effective person to be a community companion.
The Effects of Operational Management towards Business Performance
Extensive production and distribution activities will support the performance of the corporation. The more capable the business owner arranges the flow of work, the higher the level of their performance which is reflected by the increase of business income. Good operational management will also prevent the entrepreneurs from inefficient business, because all workflow has been arranged in such a way and already have a standard work set so that will avoid the mistakes of work that can ultimately harm.
The Effects of Marketing Management towards Business Performance
The better the marketing of SMEs business will further improve the performance of the business. In the business marketing system, in addition to business networks, network marketing is also one of the factors that determine business performance. Therefore, an entrepreneur should pay attention to the marketing management well. There are four mixes in marketing that should be a concern: product, price, distribution and promotion. Products offered must be products that can be accepted by consumers, the price offered must be appropriate and able to be purchased by consumers, the distribution should be easy for consumers and promotion must be done by the entrepreneur so that the product is known by the consumer.