Scale-Up SME Readiness Analysis to Plan Mentorship Program in Achieving Sustainable Competitive Advantage
Oesman Raliby Al manan, Effendi Bin Mohamad, Hambali Bin Arep

Faculty of Industrial and Manufacturing Technology and Engineering, University Teknikal Melaka Malaysia

Abstract

Based on records from the Ministry of Cooperatives and SMEs, the contribution of MSMEs to the Indonesian economy in the last 10 years has experienced relative stagnation. It was recorded that 99.7% were still micro businesses and part of the subsistence economy, with the entrepreneurship ratio still below 3.47 percent. So the President launched the Inclusive Partnership Movement for MSMEs to Upgrade. Assessment of the readiness of MSMEs to advance to class is important for class ranking for MSMEs.,
Objective: Specifically, this research aims to assess the readiness of MSMEs to upgrade as a strategic step for the development and growth of small businesses. Because this research provides theoretical implications and managerial implications regarding the steps that must be taken by both small and medium enterprises and stakeholders to grow and develop their businesses.
Method: This study was carried out not only by distributing questionnaires, but also by conducting a direct survey to test the parameters or criteria for determining the MSME Class Ranking.
Results: Based on the studies conducted, it shows that the journey for MSMEs to move up a class is not an easy thing. At the pilot stage, SMEs have to overcome the so-called ^valley of death^. The next stage of development is the growth period- and progress, where each stage for each MSME is different. So that MSMEs can move up in class, a strategy is needed that focuses on efforts to increase sales turnover.
Contribution: This research is expected to help contribute to the stages of development of MSMEs in Magelang City, so that it can assist the City government in formulating policies related to MSMEs moving up a class.

Keywords: SMEs Scale-up, Mentorship, Sustainable Competitive

Topic: Economics