Small enterprises in Indonesia has been dominated by traditional business units that needs small capital and investment to develop and to operate without having to implement modern management and organizational system which are complex and expensive similar to what modern businesses usually need.
On the hand, small and medium enterprises generally produce simple consumption products to fulfill the needs of low-income community groups. The implication of this nature is different with medium and big enterprises. As a matter of fact, small enterprises do not really depend on government facilities.
In the era of free trade and globalization of world economy, technology advances, mastery of knowledge, and high quality of Human Resources are three competitive advantaged factors that are dominant to determine whether a certain business has a bright prospect. When small entrepreneurs do not have these three competitive advantages, Small and Medium Enterprises (UKM) of Indonesia will be in danger and ousted.
Concerning exports, UKM have the potential to increase the export earnings. Nevertheless, this potential has not been used optimally.
Only several UKM in certain industrial sectors have exported their products. To develop economy in Indonesia, UKM have always been depicted as a sector with an important role because most of its entrepreneurs lack business knowledge either in traditional or modern sector.
There are many ways to improve the quality of UKM. One of them is to improve their knowledge through learning and training especially designed for UKM entrepreneurs or the owner of business clinics. The synergy between mastering the information and communication technology and Human resources development, and the leadership factor in UKM will create stronger UKM that can compete either in local of global business world.
Big companies have obviously 3 factors mentioned above producing good quality products so that it is easy for them to enter the international market. ME Trading House also has companies with that scale and become partners to fulfill the needs of the international market by launching specific products, such as Muslim outfits, Natural rubber, Copra, fishery products, medical equipment, modern furniture, paper, and others.
Cooperating together with foreign imported agents is also possible in order to widen the international trading network.