Innovation: Opportunity Motivation through Indigenous SMEs Survival in Koto Gadang
Evie Oktafia (a*), Retno Kusumastuti (b)
a) Faculty of Administrative Science, University of Indonesia, Depok, Indonesia
*octavia.evie[at]gmail.com
b) Faculty of Administrative Science, University of Indonesia
Abstract
Innovation is an opportunity for Small and Medium Enterprises (SMEs) to do business according to market needs. It helps SMEs have new market shares. As a spearhead of the Indonesian economy, SMEs can survive extreme inflation. SMEs may survive, but the growth of SMEs is offset by the fall of SMEs whose business types are not a current trend. SMEs in Indonesia are spread throughout the region, including Koto Gadang which has indigenous SMEs for the regional specialty products. The Koto Gadang community (Minangnese) is known as a smart businessman, but the number of indigenous SMEs tends to be stagnant every year. This is influenced by the motivation of the Minangnese in doing business. The necessary motivation is higher than the the opportunity motivation. Because of that, the innovation is lack to be applied. This study uses a quantitative approach to see innovation that is characterized by motivation in indigenous SMEs in Koto Gadang. Data collection is done by distributing questionnaires to indigenous SMEs and conducting in-depth interviews with relevant stakeholders. The results of observations and comparisons with existing theories, indigenous SMEs in Koto Gadang can survive if they innovate while maintaining the distinctive characteristics of the products sold.
Keywords: innovation, opportunity motivation, survival, indigenous SMEs
Topic: Entrepreneurship