ANALISIS POTENSI PENGEMBANGAN USAHA MIKRO KECIL NDAN MENENGAH (UMKM) KABUPATEN INDRAGIRI HILIR

Abstract

This study aims to determine the development of MSMEs based on the type of business in Tembilahan sub-district, Indragiri Hilir district. The data used in this study are primary and secondary data. This study used a quantitative descriptive method, this study was analyzed using a cluster approach. Data collection techniques include questionnaires, interviews, and documentation. The results showed that the potential for development in Indragiri Hilir Regency is still low, ranging from 0 to 25% due to the low market demand from outside the region in Indragiri Hilir Regency so that the products sold are still small. The potential for developing MSMEs is largely dependent on capital loans to develop their businesses, only a small proportion uses their own capital. Business profits at MSMEs are only in the range of 25 to 50% of their initial business capital. This condition is because business actors rarely get large profits from the products purchased by consumers. So that business owners rarely add to their workforce after their business profits increase.

Keywords: Potential Development of Micro, Small and Medium Enterprises (UMKM)