INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND RESEARCH

 

MSME BUSINESS STRATEGY TRAINING IN THE DIGITAL ERA FOR KUPANG RAYA VILLAGE COMMUNITY, NORTH TELUK BETUNG DISTRICT, BANDAR LAMPUNG CITY

 

Septa Riadi*, Nelson, Yessi Dekasari, Hujaimatul Fauziah, Trisnowati Josiah

Faculty of Economics and Business, Sang Bumi Ruwa Jurai University, Lampung, Indonesia

Email: [email protected]*

 

 

Abstract

Kupang raya village is a sub-district located in the sub-district of Teluk Betung Utara, Bandar Lampung City. Kupang Raya Village is only 1 KM from the city center of Bandar Lampung, causing most of the population in Kupang Raya to work as entrepreneurs. The majority of businesses run by the community are small and medium enterprises. Most businesses run by community members are still traditional and have not been touched by technology. Sales in the traditional way are indeed decreasing due to pressure from the digital platform sales system. For this reason, MSME business strategy training is needed by introducing MSMEs in Kupang Raya Village with a Digital Platform. The training was carried out employing public lectures and hands-on practice. After the training, participants are expected to be able to apply marketing using a digital marketing platform.

 

Keywords: training; MSME; platform; digital

 

Received 22 April 2022, Revised 10 May 2022, Accepted 29 May 2022

 


Introduction

Based on the Regional Regulation of the City of Bandar Lampung Number 04 of 2012, concerning the Arrangement and Formation of Kelurahan and Subdistrict, the geographical location and administrative area of ​​Teluk Betung Utara Subdistrict has the following boundaries:

1)    In the north it is bordered by Enggal Subdistrict and Central Tanjung Karang Subdistrict

2)    In the south, it is bordered by the Teluk Betung Selatan Subdistrict

3)    In the east by the Bumi Waras Subdistrict and Enggal Subdistrict

4)    In the west by South Teluk Betung District.

The North Teluk Betung District Government was formed in 1976 in Lampung Province based on Law no. 14 of 1994. In 2012, based on the Regional Regulation of the City of Bandar Lampung Number 04 of 2012, concerning the Arrangement and Formation of Villages and Subdistricts, the Teluk Betung Utara Subdistrict was divided into six districts, namely

1)   Kupang City districts

2)   Kupang Raya districts

3)   Kupang Teba districts

4)   Pengajaran districts

5)   Gulak Galik districts

6)   Sumur Batu districts

The administrative center of North Teluk Betung Subdistrict is in Kupang Village. Kupang Raya Urban Village is one of the villages in Bandar Lampung City, precisely in Teluk Betung Utara District. Initially, Kupang Raya Village was part of Kupang Teba Village which finally separated its territory in 1989 from the First Head of Apri Jayasina Village. The Kupang Raya sub-district is only 17 hectares wide, which accounts for 4 percent of the Teluk Betung Utara sub-district area. Four other sub-districts border the Kupang Raya village: Pahoman Village in the north, Kangkung Village in the south, Kupang Teba Village in the west, and Bumi Waras village in the east. The total population of Kuang Raya in 2020 is 3,020 people, with most of the population aged 25-50 years. The education level of the community in the Kupang Teba sub-district is very diverse. Still, the number of people who have received higher education is only 67, and most of the population only completed high school, with a total of 701 residents.

Kupang Raya Village consists of 11 Neighborhood Units (RT) and 2 Neighborhoods. With a very high population density of 23,606 inhabitants per square kilometer. Economic facilities such as markets, shops, food stalls, and other means of economic transactions are essential factors in their existence in the process of forming/developing the community's economy in an area. There are three groups of shops in Kupang Raya Village, 42 shops/grocery stalls in the Kupang Raya Village area, four food stalls/shops, one hotel, and one guesthouse. From the data above, we can see that with minimal area size, economics and trade are the majority professions carried out by the population (BPS Kota Bandar Lampung, 2020).

 

Understanding Business

Business is an activity for profit. Business is an organized individual business activity to generate funds to sell goods or services to gain profits in meeting the needs of the community and the industry (Afuah, 2004). A business is an organization that provides goods or services for sale to make a profit (Ebert, Griffin, & Ebert, 2007). Everyone or individuals or groups carry out business activities to seek profit so that their life needs are met. No one does business for profit (Sadono, 2010). Business is everything and the overall complexity that exists in various fields such as sales (commerce) and industry, essential industry, processing, and manufacturing and network industries, distribution, banking, insurance, transportation, and so on, which then serve and enter fully (which serves and interpenetrate) the business world as a whole (Bilson, Brailsford, & Hooper, 2001). A business is an entity created to produce goods and services for customers. Every business deals with people (Madura, 2010). Those people suffer the consequences because of the business they are. Cross-functional cooperation in business emphasizes the need for managers from different functional areas to maximize profits in achieving common goals. From the above understanding, the author can conclude that business is a whole series of activities to carry out investments in existing resources that can be carried out individually or in groups to meet daily needs and improve living standards by creating goods or services in order to get a profit that as much as possible.

 

Business Strategy

Business strategy is a strategic plan that occurs at the division level. It is intended to build and strengthen the competitive position of the company's products and services in the particular industry or market served by the division (Hariadi, 2003). Business strategy is a strategy to achieve goals that are often analogous to a chess strategy, in which systematic thinking, planning, agility to step, courage to take risks, and passion for winning matches are some of the characteristics of the game of chess that are relevant to management practices (Joewono, 2012). Business strategy is different from strategy at the corporate level. This strategy at the business level focuses more on improving the competitive position of the company's products or services in specific market segments (Solihin, 2012). From the opinions above, it can be concluded that business strategy is a strategy to achieve goals in business management. It is a guideline for a company's strategic plan intended to build and strengthen the competitive position of the company's products or services in the industry.

 

Digital Business

Digital business is one service that uses advanced technology when making a product or in the marketing process. Digital business is related to selling a product without its form, such as software. Thus, it means all types of businesses whose product sales are done online, be it through websites or applications.

Digital business can also be in the form of goods or services. For example, if you can provide exciting writing, you can become a content writer. You can make this skill the core of your business.

Affiliate business is a marketing activity for other people's goods in exchange for a commission. The workings of digital affiliates are briefly divided into three, namely:

Registration for an affiliate program and get a referral code or link in the form of a particular invitation.

Carry out product marketing activities by utilizing the website or social media.

If there are buyers who use the code you provide or follow the link you share, then you will get income.

Drop shipping is one of the businesses that allow you to sell a product without having your storage and product delivery. Only with the ability to sell can you start this dropshipping business.

The drop shipping business is different from an affiliate business, where your affiliate business becomes the person who markets and sells certain products. While your dropship business only helps market the products provided by the seller. The profit earned is in the form of the difference from the selling price given by the seller.

In short, the drop shipping business is a liaison between consumers and sellers. You can turn to be a drop shipper into an attractive opportunity because this business can be started without capital, and you are free to determine what items to focus on for sale. In this era, starting a digital business is very promising and provides enormous opportunities, especially in Indonesia. In addition to the business examples mentioned above, there are still many examples that could be an opportunity for you to develop. The key is to start a business that matches your abilities and skills.

 

Digital Platform

In recent years, we have heard a lot about it. This condition is in line with the rapid pace of digitalization in all aspects of life in the world. The rapid and widespread digitalization process has made many companies give birth to new digital platforms to meet the community's needs. The presence of a digital platform is one of the consequences of the digitalization process that humans inevitably have to do today. Without digitization, human activities in various fields will be left behind. Therefore, the digitization process must be encouraged to continue effectively and quickly. However, its appearance has occurred in the last few years, and until now, many parties still do not fully understand the meaning of the term digital platform. This misunderstanding often causes negative impacts in the form of community mistakes in carrying out digital transformation.

A digital platform can be defined as a place, container, or means that facilitates the meeting of parties to exchange information, trade, or offer services and services. The presence of a digital platform allows all of the above activities to be carried out in one place, which brings together sellers and buyers directly, information providers and recipients, or service/service providers and users.

Due to their broad nature, digital platforms have different types. This difference arises following the diversity of functions and objectives of establishing a digital platform. For example, currently, there are various digital names for social media platforms such as Facebook, Instagram, Twitter, and LinkedIn. There are also digital audio-visual platforms such as YouTube, Spotify, Apple Music, and Langit Musik that are here to meet the entertainment needs of the community. A digital platform can be successful and means its presence if it can carry out two main functions. First, if the related digital platform can facilitate the exchange of services and information and bridge trade properly, second, suppose the platform can provide significant added power for the community to improve their living and welfare. In that case, the positive impact of the widespread emergence of digital platforms can also be felt if their presence is used optimally by the community. Without proper use, digital platforms will not bring any meaning and added value to life.

 

Method

This research implemented a qualitative method. Qualitative research approaches emphasize in-depth observations. Consequently, applying qualitative research methodologies might result in a more detailed examination of a phenomenon (Sugiyono, 2019). Moreover, the research conducted lectures, demonstrations, training, and mentoring strategies.

 

Results and Discussion

The target audience in the community service activities is Kupang Raya Village residents with small and medium enterprises (MSMEs). The target of community service program activities is through the training method, which the Faculty of Economics will hold, Sang Bumi Ruwa Jurai University, 27 people attended this training activity.

A.  Kinds of Activities

The methods of activities used in the digital business strategy training in Kupang Raya Village are as follows:

1.   Lectures

This method was chosen to convey essential concepts for the community to understand and master. This method is based on the consideration that the lecture method is combined with pictures and displays about attractive products and provides material related to effective and efficient sales techniques.

 

2.   Demonstration

This method was chosen to demonstrate a process of creating a Digital Platform Account so that goods and services can be more easily marketed and reach a wider audience.

 

3.   Training and Mentoring

After the demonstration, there will be a follow-up related to its implementation for 1 month and will assist the community in creating an excellent digital platform for the product. It is hoped that at this stage, the community will be able to implement all the processes.

 

CONCLUSION

From these results, it can also be concluded that the implementation of this training received a positive response and high enthusiasm from the MSME business actor group in Kupang Raya village due to the increased knowledge possessed by business actors and has the potential to be developed and become additional household income.

Based on the activities that have been carried out, I hope there will be other community service programs that can increase people's income through household businesses.

 

 

REFERENCES

Afuah, A. (2004). Business models: A strategic management approach. McGraw-Hill/Irwin. Google Scholar

 

BPS Bandar Lampung City (2020). Teluk Betung Utara District in Figures. Bandar Lampung. City BPS. 

 

Bilson, C. M., Brailsford, T. J., & Hooper, V. J. (2001). Selecting macroeconomic variables as explanatory factors of emerging stock market returns. Pacific-Basin Finance Journal, 9(4), 401–426. Scopus

 

Ebert, G., Griffin, R. W., & Ebert, R. J. (2007). Bisnis, Edisi Kedelapan. Jilid Pertama. Jakarta: Gelora Aksara Pratama. Erlangga. Google Scholar

 

Hariadi, B. (2003). Perumusan Strategi untuk Memenangkan Bisnis, Strategi Manajemen. Bayu Media. Google Scholar

 

Joewono, H. (2012). Strategy Management. Jakarta: Arrbey. Google Scholar

 

Madura, J. (2010). Financial Institution and Markets: Ninth Edition. Canada: South-Western Cengage Learning. (Thomson South-Western). Google Scholar

 

Sadono, S. (2010). Makroekonomi. Teori Pengantar. Edisi Ketiga. Jakarta: PT. Raja Grasindo Perseda. Google Scholar

 

Solihin, I. (2012). Manajemen Strategik, Jakarta. Erlangga. Google Scholar

 

Sugiyono. (2019). Metode Penelitian. Bandung: CV Alfabeta. Google Scholar

 

 



 

© 2022 by the authors. It was submitted for possible open access publication under the terms and conditions of the Creative Commons Attribution (CC BY SA) license (https://creativecommons.org/licenses/by-sa/4.0/).