Micro and Small Industries, Little Ones Who Have Big Impact

It is known that the manufacturing, mining, energy, and construction industrial sectors are the main components in national development. Based on data published by BPS (Indonesian Economic Growth Quarter I-2022 BRS No. 34/05/Th. XXV. 9 May 2022), the contribution of these sectors to the Indonesian economy reached 40.09 percent, which was dominated by the Manufacturing Industry at 19.19 percent. This contribution is far above the agricultural and trade sectors which respectively reached 12.55 percent and 13.09 percent. This is because the manufacturing, mining, energy, and construction industries are able to provide jobs. In particular, Micro and Small Industries (IMK) have a role in creating business opportunities in the informal sector.

The development of the economy, especially the increasing secondary sector, cannot be avoided from the need for raw materials, especially minerals, energy, and infrastructure development. The direction of national development is to improve a sustainable economy. Increasing the power and role of Micro, Small and Medium Enterprises (MSMEs) is one way towards sustainable economic growth. Based on the results of the Economic Census (SE2016), the number of Micro and Small Enterprises (UMK) in Indonesia contributed 98.33 percent or 26.26 million businesses. This very large number of MSMEs has a lot of positive impacts in reducing unemployment because it plays a role in creating jobs while increasing the value of Gross Domestic Product (GDP).

In 2017 the number of non-agricultural MSMEs in Indonesia reached 98.68 percent. spread across all non-agricultural categories. Micro, Small, and Medium Enterprises are one of the economic activities that thrive in Jambi Province, especially Muaro Jambi Regency. It can be seen from the number of business increases in 2018 as many as 1,757 and in 2021 it will reach 42,105 businesses.

Of the three types of businesses, the biggest contributor to the increase is micro-enterprises, namely in 2018 as many as 1,297 businesses and in 2021 to 41,645. Small capital, flexibility in running a business, the products/services produced are able to provide closeness to the needs of the community, and the use of local resources is a characteristic in supporting the development of this business. The importance of the role of Micro and Small Enterprises in the development of a region makes BPS always make improvements in surveys in the scope of industrial statistics. In obtaining information on the number of Micro and Small Industries (IMK), BPS conducts IMK surveys which are held on a quarterly and annual basis. The purpose of holding the survey on an ongoing basis is to find out the growth of IMK production which is used as material for quarterly economic growth and macroeconomic development planning. The data collected includes the location of the business, the main activity of the nature of the business, the amount of production of goods produced in standard units, the price per unit of goods, the value of production, the value of all income and expenses, and the number of workers. (Jambi/BPS1505) data