GROUP 6

DIFFERENCES IN THE PRACTICE OF CMSMES

IN INDONESIA AND OTHER COUNTRIES

Arranged by :

1. Eriyani Dewi Devitasari (C1I021002)

2. Ragil Arianto (C1I021005)

3. Salisa Yazka Maylia (C1I021015)

4. Ivana Olga Sinaga (C1I021031)

5. Erico Dwi Septiawan (C1I021033)

6. Qarib Maulana Zammi (C1I021034)

MINISTRY OF EDUCATION, CULTURE, RESEARCH, AND TECHNOLOGY

JENDERAL SOEDIRMAN UNIVERSITY

FACULTY OF ECONOMICS AND BUSINESS

2023
 CHAPTER I
INTRODUCTION

A. Background
Cooperatives and Micro, Small and Medium Enterprises (CSMEs) have an
important role in the Indonesian economy. Currently, CSMEs is one of the sectors that
is considered strategic in promoting economic growth, equity and increasing people's
income, alleviating poverty and reducing the unemployment rate. However, the
practice of CSMEs in Indonesia is still not optimal when compared to other countries.
Several countries, such as South Korea, Singapore and Japan have succeeded in
developing CSMEs into a strong sector and play an important role in their economy.
Recent research on differences in CSMEs practices in Indonesia and other
countries needs to be carried out to find out the factors that influence the success of
KUMKM in these countries and how the government can improve CSMEs practices
in Indonesia.

B. Problem
1. What is the definition of Cooperatives and SMEs in Indonesia and other
countries?
2. What are the government support for the development of CSMEs in Indonesia and
other countries?
3. How is the market access for CSMEs in indonesia and other countries?
4. What are the innovation and technology in the development of CSMEs technology
in Indonesia and other countries ?
5. What are the differences CSMEs in marketing practices ?
6. What are the differences CSMEs in technological involvement in Indonesia and
other countries ?
7. What are the differences CSMEs in funding in Indonesia and other countries ?
8. How is the practice of CSMEs in Indonesia and other countries ?

C. Purpose
1. Understanding the definition of Cooperatives and SMEs in Indonesia and other
countries.
2. Understanding what are the government support for the development of CMSMEs
in Indonesia and other countries.
3. Understanding how is the market access for CSMEs in Indonesia and other
countries.
4. Understanding the innovation and technology in the development of CSMEs
technology in Indonesia and other countries.
5. Understanding the differences in CSMEs marketing practices.
6. Understanding the differences CSMEs in technological involvement.
7. Understanding the differences CSMEs in funding.
 8. Understanding how is the practice of CSMEs in Indonesia and other countries.

CHAPTER II
DISCUSSION

1. Definition of CSMEs in Indonesia and Other Countries

a. Definition of Cooperatives and SMEs in Indonesia and Other Countries
Cooperative is a business entity owned and operated by its members which
aims to improve the welfare of its members economically, socially and culturally.
Cooperatives aim to empower their members through various activities such as
business development, training, education, and social development. Cooperatives
also prioritize the principles of democracy, justice, social responsibility and
sustainability. UMKM (Micro, Small and Medium Enterprises) is a form of
business that has certain criteria such as a limited number of employees, capital
and turnover. MSMEs have an important role in the economy of Indonesia and
other countries because of the large number of these businesses and their
contribution to job creation and improvement of the local economy.

b. Definition of Cooperatives and SMEs in Other Countries

The definitions of cooperatives and MSMEs in other countries may have slight
differences, but in general the concepts are almost the same. For example, in the
United States, cooperatives are known as cooperatives or co-ops, while SMEs are
known as small and medium-sized enterprises (SMEs). In European countries,
cooperatives are known as cooperatives or cooperatives, while SMEs are known
as small and medium-sized enterprises (SMEs) or micro, small and medium-sized
enterprises (MSMEs).

c. Differences in the Definition of CSMEs in Indonesia and Other Countries

In general, the concept of cooperatives and SMEs is almost the same
throughout the world. However, there are differences in the definitions of
cooperatives and MSMEs in Indonesia and other countries that could be of
concern, including:
● Cooperatives: In Indonesia, cooperatives are regulated in Law Number 25 of
1992 concerning Cooperatives. Meanwhile, in other countries, the definition
of cooperatives can vary depending on the laws and regulations that apply in
each country.
● MSMEs: In Indonesia, the criteria for MSMEs are regulated by the Ministry
of Cooperatives and SMEs. Micro Enterprises have assets of up to IDR 50
million, Small Businesses have assets between IDR 50 million and IDR 500
million, and Medium Enterprises have assets between IDR 500 million and
IDR 10 billion. Whereas in other countries, the criteria for SMEs can vary
depending on the definitions and regulations applied in each country.
 ● Focus: In Indonesia, cooperatives are more focused on business activities that
prioritize the interests of members. Whereas in other countries, cooperatives
can also focus on social and environmental activities. Meanwhile, MSMEs in
Indonesia are more focused on job creation and local economic growth, while
in other countries, MSMEs are also focused on technological innovation and
development.
● Business Scale: In Indonesia, cooperatives are often identified with large
scale businesses and have many members. Meanwhile, in other countries,
cooperatives can also be run on a small and medium scale. Likewise with
MSMEs, in Indonesia MSMEs are often run on a small scale, while in other
countries they can also be run on a medium to large scale.
The differences in the definitions of cooperatives and MSMEs in Indonesia and
other countries depend heavily on the policies and conditions of each country.
However, in general, the concept of cooperatives and MSMEs around the world
aims to strengthen the economy and improve people's welfare.

2. Government Support for the Development of CSMEs in Indonesia and Other

Countries
a. Differences in Government Policy in Supporting CSMEs in Indonesia and
Other Countries
Each country has different policies and approaches in supporting growth and
development in CSMEs. In Indonesia, the government has issued several policies
to support the growth of MSMEs, such as accelerating business licensing,
providing capital assistance, and increasing market access and training. However,
there are still many challenges faced by CSMEs in Indonesia, such as limited
access to finance and a lack of adequate skills and education.
In other countries, government policies in supporting CSMEs also vary. For
example, the Japanese government has a special program to support the
development of MSMEs in the manufacturing sector, including providing
technology assistance and access to global markets. Meanwhile, the Singapore
government encourages the growth of MSMEs through various programs aimed at
increasing access to finance, training and innovation.

b. The Influence of Indonesian Government Policies and Other Countries on

the Growth of CSMEs
Government policies have an important role in supporting the growth of
CSMEs. By providing access to markets, financing and training, the government
can help MSMEs grow and contribute to overall economic growth. Studies
conducted by the Asian Development Bank show that government support in the
form of training programs, increased access to finance, and access to markets can
increase the productivity and growth of SMEs.

3. Market Access for CSMEs in Indonesia and Other Countries

a. Challenges Faced by KUMKM in Accessing Markets in Indonesia and Other
Countries
CSMEs (Cooperatives, Micro, Small and Medium Enterprises) face various
challenges in accessing markets in Indonesia and other countries. Some of the
main challenges include:
● Tough Competition: CSMEs competes with big companies and well-known
brands that have larger resources and networks. CSMEs must face lower
product prices and more aggressive promotions, which can make it difficult
for them to compete.
● Limited Resources: CSMEs often have limited resources, such as capital,
skills, and experience. Limited resources may limit their ability to expand
production and market products effectively.
● Access to Markets: MSMEs may face difficulties in reaching a wider market
due to limitations in transportation infrastructure and information technology.
These limitations may affect their ability to expand geographic reach and
develop better distribution channels.
● Changes in Government Policy: Inconsistent and frequently changing
government policies can significantly affect the CSMEs business. Taxation
policies, trade regulations and other policies can impact the operations and
profits of CSMEs.
To overcome this challenge, KUMKM can take advantage of information
technology, develop skills and experience through training, and establish
partnerships with large companies and financial institutions. KUMKM can also
work with government and business organizations to fight for policies that support
their growth.

b. Comparison of CSMEs Market Access in Indonesia and Other Countries

Currently, CSMEs market access in Indonesia is still facing several challenges,
such as regulatory issues, lack of access to capital and technology, and lack of
business skills and knowledge. This makes it difficult for many CSMEs in
Indonesia to increase sales volume and develop their business. In contrast to
Indonesia, CSMEs market access in developed countries such as the United
States, Japan and European countries is very good. This is due to the support from
the government and private organizations in helping CSMEs increase their
capacity and market their products. The United States government, for example,
has a Small Business Administration (SBA) which provides training, funding and
access to the market for MSMEs in the United States.

In Japan, MSMEs are recognized as an integral part of the economy and

receive a lot of support from the government and the private sector in terms of
funding, development and marketing. In European countries, CSMEs also receive
support from the government and private organizations in terms of development,
funding and marketing. In addition, CSMEs in these countries also have better
access to international markets through free trade agreements with other countries.
 Overall, market access for CSMEs in Indonesia still has many challenges that
need to be overcome. However, with support from the government and the private
sector, as well as efforts from CSMEs itself to increase business capacity and
knowledge, it is hoped that CSMEs market access in Indonesia can increase and
compete with developed countries in the future.

4. Innovation and Technology in the Development of CSMEs Technology in

Indonesia and Other Countries
a. Explaining Innovations and Technologies Used by CSMEs in Indonesia and
Other Countries
Innovation and technology can be the key to success for CSMEs to increase
competitiveness and increase productivity. Innovation and technology continue to
develop, so that KUMKM must always update themselves and adapt to these
changes to remain competitive and growing.
In Indonesia, several innovations and technologies used by KUMKM include:
● E-commerce : CSMEs can take advantage of e-commerce platforms such as
Shopee, Tokopedia, or Bukalapak to expand the market and increase sales.
● Management information system: CSMEs can use applications or software
to assist in business management, including inventory management, payroll,
and financial reporting.
● Digital marketing: CSMEs can utilize social media such as Instagram,
Facebook or TikTok to promote their products or services.
● Internet of Things (IoT): IoT can be used to monitor stock availability,
optimize production processes and save energy.

In other countries, several innovations and technologies used by CSMEs include:

● Digital payments: In many countries, digital payments such as credit cards or
digital wallets such as Apple Pay or Google Wallet are becoming increasingly
popular, so MSMEs have to adjust their payment methods.
● Big data processing: Big data can help CSMEs to collect, analyze and utilize
customer and business data to increase efficiency and make better decisions.
● Cloud computing : Cloud computing can be used to store data and access
business applications from anywhere, which allows CSMEs to work flexibly
and increase productivity.
● Artificial intelligence (AI): AI can be used to optimize production processes,
predict market demand, and personalize customer experiences.

b. Comparing the Level of Use of Innovation and Technology in Indonesian

CSMEs and Other Countries
Currently, CSMEs (Cooperatives, Micro, Small and Medium Enterprises) in
Indonesia is experiencing rapid development. However, the level of use of
innovation and technology is still one of the challenges for CSMEs in Indonesia.
When compared to developed countries such as Japan, the United States, or South
 Korea, the level of use of innovation and technology in Indonesian CSMEs is still
relatively low. These countries already have strong technological and innovation
infrastructure and have implemented the use of technology in their CSMEs in
various aspects, including marketing, production and management.

However, compared to developing countries in the Southeast Asian region

such as the Philippines, Vietnam and Thailand, the use of innovation and
technology in Indonesian CSMEs is better. This can be seen from the increasing
use of information and communication technology (ICT) in Indonesian CSMEs in
recent years. However, keep in mind that these comparisons are general in nature
and may vary depending on the sector and line of business being compared. In
addition, many factors affect the level of use of innovation and technology in
Indonesian CSMEs including access to capital and human resource skills, as well
as support from the government and business support institutions.

5. Differences in CSMEs Marketing Practices

a. Differences in CSMEs Marketing Practices in Indonesia and Other Countries
The marketing practices of CSMEs (Cooperatives, Micro, Small and Medium
Enterprises) in Indonesia can be different from the marketing practices of CSMEs
in other countries. Following are some differences in CSMEs marketing practices
in Indonesia and other countries:
● Marketing Approach: In Indonesia, the marketing approach for CSMEs
tends to be traditional, such as promotions through brochures, pamphlets and
banners. Meanwhile, in other countries, the CSMEs marketing approach tends
to use digital platforms, such as social media and websites.
● Marketing Skills: The marketing skills of CSMEs in Indonesia are still
relatively lacking compared to other countries, especially in terms of using
technology and managing brands. In other countries, MSMEs often have more
advanced marketing skills and are more inclined to utilize technology to
increase sales.
● Distribution Network: In Indonesia, CSMEs tend to rely on traditional
distribution networks, such as markets, shops and agents. Whereas in other
countries, CSMEs may be more inclined to use e-commerce platforms or
partnerships with large companies to expand their market reach.
● Government Policy: Government policies in Indonesia in supporting the
marketing of CSMEs tend to be limited to assistance programs such as training
and funding. In other countries, the government tends to have a more
comprehensive strategy to support the marketing of CSMEs, such as market
development and financial and capital support.
● Business Environment: The business environment in Indonesia still has
many challenges for CSMEs, such as inadequate infrastructure, complex
regulations, and intense competition. In other countries, the business
environment tends to be more conducive for CSMEs, thereby enabling faster
and higher quality business development.
 b. Challenges and Opportunities in CSMEs Marketing in the Digital Age
Challenge :
● Tighter competition: The presence of an e-commerce platform that allows
CSMEs to sell products online, presents increasingly fierce competition with
other sellers on the same platform.
● Limited funds: Limited funds are often an obstacle for CSMEs in developing
an effective digital marketing strategy. This limits CSMEs from conducting
broader paid advertising and obtaining other marketing technology support.
● Lack of digital skills: MSMEs often have limited technological expertise,
such as SEO skills, social media marketing, or website management. This can
limit the ability of CSMEs to reach a wider audience and maximize sales
potential.

Opportunity:
● Access to a larger market: Digital marketing allows MSMEs to access a
larger market at a relatively lower cost compared to traditional marketing.
● Increase brand awareness: CSMEs presence on social media and online
platforms can help introduce their brand to potential consumers and increase
broader brand awareness.
● Increase customer loyalty: By leveraging social media, CSMEs can
strengthen their connections with customers and foster closer relationships
with customers, thereby increasing customer loyalty and extending the
customer life cycle.
● Utilizing data: Digital marketing allows CSMEs to utilize data and
information collected from using their website or social media to understand
customer behavior and optimize their marketing strategy.
● Innovation: Small and Medium Enterprises can utilize digital technology to
create innovations that enable them to reach potential consumers in new and
different ways.

6. Differences CSMEs in Technological Involvement in Indonesia and Other

Countries
a. Differences technological involvement in cooperatives
Technological involvement in cooperatives in Indonesia and other countries can
differ in several aspects, including:
● Technology Adoption Rate: Developed countries tend to be more advanced
in technology adoption than developing countries like Indonesia. As a result,
cooperatives in developed countries tend to be more sophisticated in using
technology.
● Technological Infrastructure: Developed countries generally have better and
more stable technological infrastructure, such as faster internet speeds and
 wider telecommunications networks. This allows cooperatives to more easily
use technology to improve their operations.
● Technology Awareness: The level of awareness of technology can also affect
the use of technology in cooperatives. In developed countries, awareness of
technology is higher than in developing countries like Indonesia.
● Use of Specific Applications: Cooperatives in developed countries may be
more likely to use specific applications to manage their operations, such as
financial management, inventory management, and members management
applications. Meanwhile in Indonesia, some cooperatives may still use simpler
applications such as excel applications or self-made applications.
● Dependence on Technology: Dependence on technology can also differ
between cooperatives in Indonesia and other countries. In developed countries,
the dependence on technology is higher due to better infrastructure and
adoption of technology. Meanwhile in Indonesia, some cooperatives may still
depend on manual operations and rely less on technology.
However, several cooperatives in Indonesia have also begun to adopt technology and
develop specific applications to improve their operational efficiency, such as financial
management applications and e-commerce applications. The rapid development of
technology in Indonesia also opens opportunities for technological development in
cooperatives in the future.

b. Differences technology involvement in MSMEs

Differences in the involvement of technology in MSMEs in Indonesia and
other countries can vary widely depending on many factors such as technological
infrastructure, education, regulation, and culture of innovation in each country.
However, in general, the following are some of the differences that can be found
between technology involvement in MSMEs in Indonesia and other countries:
● Technological infrastructure: Developed countries usually have better and
wider technological infrastructure, such as the availability of a faster and more
stable internet network, access to cloud technology, and access to a wider range
of digital financial services. In Indonesia, technological infrastructure is still
developing and many areas in Indonesia are still experiencing problems with
internet access.
● Education: Developed countries usually have better education and are more
focused on developing technological skills. This can improve the skills and
technological knowledge of MSME actors. In Indonesia, there are still many
MSME actors who do not have formal education or limited technology
education.
● Regulation: Developed countries usually have regulations that pay more
attention to and facilitate the involvement of technology in business, such as
regulations on data security and online consumer protection. In Indonesia,
regulations related to technology are still in the development and data
protection stages and online consumers are still not very strong.
 ● Culture of innovation: Developed countries usually have a stronger culture of
innovation, which encourages businesses to adopt new technologies and create
innovations. In Indonesia, the culture of innovation is still developing and there
are still many business people who have not realized the potential of
technology to develop their business.
Nonetheless, Indonesia is experiencing developments in terms of technology
involvement in MSMEs. The government and private organizations have
introduced various programs and initiatives to help MSMEs take advantage of
technology and grow their businesses. The more MSMEs use technology in their
business, the greater the opportunity to increase their competitiveness in the global
market.

c. Impact of Technology on the Efficiency and Effectiveness of CSMEs

Technology has a major impact on the efficiency and effectiveness of CSMEs
(Cooperatives, Micro, Small and Medium Enterprises) by increasing productivity
and enabling KUMKM to compete in an increasingly competitive market.
Following are some of the impacts of technology on the efficiency and
effectiveness of KUMKM:
● Improve operational efficiency: MSMEs can use technology to improve
their operational efficiency, for example by using accounting software or
inventory management applications. This technology can help CSMEs manage
their finances, speed up business processes, and reduce operational costs.
● Increase marketing effectiveness: Technology has also enabled CSMEs to
expand their market reach. By using social media, websites or e-commerce
platforms, CSMEs can market their products and services to a wider audience
and enable consumers to buy their products online.
● Improving the efficiency of delivery of goods and services: Technology can
also assist CSMEs in increasing the efficiency of delivery of goods and
services. For example, using shipping applications, goods tracking systems,
and using integrated logistics services. This can help CSMEs complete
transactions more quickly and efficiently.
● Speeding up the process: Technology production can assist CSMEs in
increasing the efficiency and effectiveness of their production. For example,
using production management software, automated machines, or robotics. This
can help CSMEs increase productivity, reduce production costs, and speed up
production time.

7. Differences CSMEs in Funding in Indonesia and Other Countries

a. Differences funding involvement in cooperatives in Indonesia and other
countries
Differences in the involvement of funding in cooperatives in Indonesia and other
countries can include several things, including:
● Funding Sources: Other countries usually have more diverse funding sources
and are easily accessible to cooperatives. In addition to capital originating
 from members, cooperatives in developed countries such as Europe and the
United States can obtain funding from financial institutions such as banks and
other cooperatives, private investors and the government through cooperative
support programs. Meanwhile in Indonesia, cooperative funding sources are
still limited and the dominant ones come from members.
● Regulation: Other countries usually have clearer and more supportive
regulations for cooperatives in accessing funding. Some countries even have
special laws that regulate cooperatives and provide incentives for cooperatives
in terms of funding. In Indonesia, regulations related to cooperatives still need
to be improved to support the growth of cooperatives.
● Level of Community Trust: The level of public trust in cooperatives also
affects the involvement of funding in cooperatives. In developed countries,
cooperatives have become part of society and are seen as a good alternative in
meeting needs. Meanwhile in Indonesia, there are still many people who are
not familiar with cooperatives and lack confidence in the performance of
cooperatives.
● Size of the Cooperative: The size of the cooperative also influences the
funding involvement. In developed countries, cooperatives usually have more
members and a larger operating scale. This makes cooperatives have easier
access to funding. Meanwhile in Indonesia, cooperatives are still dominated by
small and medium cooperatives which have limitations in accessing funding.
Thus, differences in the involvement of funding in cooperatives in Indonesia and
other countries are influenced by several factors such as funding sources,
regulations, the level of public trust, and the size of the cooperative.

b. Differences funding involvement in MSMEs in Indonesia and other countries

There are several differences in the involvement of funding for MSMEs in
Indonesia and other countries. Here are some of those differences:
● Interest rates: Interest rates in Indonesia tend to be higher compared to
developed countries. This can make funding more expensive for MSMEs in
Indonesia.
● Availability of loans: Availability of loans for MSMEs in Indonesia is still
relatively low. Banks in Indonesia tend to be more careful in providing loans to
MSMEs because of the higher risks. In developed countries, MSMEs find it
easier to get loans from banks or other financial institutions.
● Availability of venture capital: Venture capital or capital investment for
companies that have high growth prospects, in developed countries is more
available than in Indonesia. This makes MSMEs in developed countries have
access to greater capital and can increase their business growth more quickly.
● Government: In several developed countries, the government provides support
in the form of assistance or incentives for MSMEs. This can assist MSMEs in
growing their business and increasing access to funding.
● Entrepreneurial culture: In developed countries, the entrepreneurial culture is
stronger and valued. This makes the community and financial institutions more
 supportive of MSME development. In Indonesia, the entrepreneurial culture is
still relatively low and is often seen as an alternative if you are not successful in
a formal job.

c. Available Funding Sources for CSMEs

There are several funding sources available for CSMEs (Cooperatives, Micro,
Small and Medium Enterprises), including:
● Bank loans: CSMEs can apply for loans to banks to obtain venture capital.
Several banks also have special programs for CSMEs with lower interest and
easier requirements.
● Crowdfunding: CSMEs can take advantage of the crowdfunding platform to
collect funds from various people who are interested in supporting their
business.
● Investors: CSMEs can look for investors who are interested in investing their
capital into their business. Investors will usually get shares or a share of the
profits of the business.

8. The Practice of CMSMEs in Indonesia and Other Countries

a. The practice of CMSMEs in Indonesia
CMSMEs (Creative, Micro, Small, and Medium-sized Enterprises) play a vital
role in Indonesia's economy. These businesses contribute significantly to the
country's GDP and provide employment opportunities for millions of Indonesians.
The Indonesian government has implemented various policies to support and
promote the growth of CMSMEs, such as tax incentives, business incubation
programs, and access to financing. One notable characteristic of CMSMEs in
Indonesia is their creativity and innovation. They often incorporate traditional
Indonesian designs and cultural elements into their products, which makes them
unique and attractive to both domestic and international markets. The creative
industries, such as fashion, crafts, and design, have become increasingly popular
among CMSMEs in recent years.

However, CMSMEs in Indonesia also face various challenges. Limited access

to financing, inadequate infrastructure, and bureaucratic red tape are among the
most significant obstacles. In addition, the COVID-19 pandemic has significantly
impacted CMSMEs, with many businesses struggling to survive due to decreased
demand and disruptions to supply chains. Despite these challenges, CMSMEs in
Indonesia continue to show resilience and adaptability. Many businesses have
shifted their focus to online sales and digital marketing, taking advantage of the
growing e-commerce market in the country. The government has also provided
support through various initiatives, such as the pre-employment card program and
the National Economic Recovery program, which aims to provide financial
assistance and support for CMSMEs affected by the pandemic.
 In summary, CMSMEs play a crucial role in Indonesia's economy, and the
government has implemented various policies and initiatives to support their
growth. Despite facing challenges, CMSMEs continue to show resilience and
adaptability, demonstrating their importance in driving economic development in
Indonesia.
b. Example of CMSMEs in Indonesia
CMSMEs stands for Creative, Micro, Small and Medium Enterprises.
Indonesia has a rich culture and a diverse range of creative industries, which has
led to the emergence of many CMSMEs across the country. Here are some kinds
of CMSMEs in Indonesia:
● Batik Clothing - Indonesia is famous for its traditional batik fabric, which is
used to make a wide variety of clothing items, including dresses, shirts, and
skirts. Many small businesses and artisans create batik clothing using
traditional techniques and designs.
● Handicrafts - Indonesia is home to a wide variety of handicrafts, including
woven baskets, wood carvings, and pottery. Many small businesses create
these handicrafts using traditional techniques passed down through
generations.
● Food and Beverages - Indonesia is known for its diverse cuisine, and many
small businesses create traditional dishes, snacks, and beverages, such as fried
rice, satay (skewered meat), and bottled tea.
● Fashion Accessories - Indonesia has a thriving fashion accessory industry,
including jewelry, bags and shoes. Many small businesses create unique,
handmade accessories using traditional materials and techniques.
● Creative industries - Indonesia's creative industries, including film, music,
and art, are growing rapidly. Many small businesses and independent artists
are working to develop and promote Indonesian culture through these
industries.

c. The practice of CMSMEs in other countries excludes Indonesia

In developed countries such as the United States and Japan, CMSMEs play a
crucial role in the economy, representing the majority of businesses and providing
employment opportunities for millions of people. These businesses often
specialize in niche markets and are known for their innovation and creativity.
They also tend to have access to better financing and infrastructure compared to
CMSMEs in developing countries. In developing countries such as India and
Bangladesh, CMSMEs are a significant contributor to the economy and often
serve as a source of employment for the informal sector. These businesses tend to
face challenges related to limited access to financing and inadequate
infrastructure. However, they are often able to adapt and thrive in challenging
environments, demonstrating their resilience and ingenuity.
In summary, CMSMEs are present in many countries around the world, and
their practices and characteristics can vary depending on the country and industry.
 However, they are often known for their creativity, innovation and ability to adapt
to challenging environments.

d. Example of CMSMEs in other countries exclude Indonesia

Here are some examples of CMSMEs in other countries that are excluded from
Indonesia:
● India: India is famous for its handicrafts and textiles, which are an important
source of income for many CMSMEs. These businesses employ a large
number of people and contribute significantly to the country's economy.
● Italy: Small coffee shops and bakeries are a common sight in Italy, and they
are often run by families or small groups of entrepreneurs. These businesses
are an important part of the country's food culture and provide a source of
income for many CMSMEs.
● France: France is known for its fashion and design industries, which are
dominated by CMSMEs. These businesses employ a large number of people
and contribute significantly to the country's economy.

Here are some real cases of CMSMEs in other countries that are excluded from
Indonesia:
● Barefoot College - India: A non-profit organization that trains women from
rural communities to become solar engineers, who then bring electricity and
lighting to their communities. Barefoot College also supports the development
of other CMSMEs, such as food processing units and textile cooperatives.
● Bumbuku Creations - Kenya: A CMSME that produces handcrafted paper
products from recycled materials. The business is owned and operated by
women in a rural community in Kenya, and it provides them with a sustainable
source of income.
● The Fair Trade Company - Netherlands: A company that sells fair trade
products, such as coffee, tea, and chocolate, sourced from small-scale farmers
and producers in developing countries. The Fair Trade Company aims to
create a more equitable and sustainable global trade system.

e. Differences in the practice of CMSMEs in Indonesia and other countries

CMSMEs (micro, small and medium-sized enterprises) play a crucial role in
the economic growth of any country. While the basic principles of CMSMEs are
similar across countries, the actual practice may differ based on a number of
factors such as culture, policy, infrastructure, and business environment. In this
context, here are some differences in the practice of CMSMEs in Indonesia and
other countries:
● Regulatory environment: Indonesia has a complex regulatory environment
for CMSMEs, with various permits and licenses required to start and run a
business. In contrast, some other countries have a simpler and more
 streamlined regulatory environment for CMSMEs, which makes it easier for
entrepreneurs to start and grow their businesses.
● Access to finance: Access to finance is a major challenge for CMSMEs in
Indonesia, with many businesses struggling to secure loans from banks and
financial institutions. This is partly due to the high interest rates and collateral
requirements imposed by lenders. In other countries, CMSMEs may have
better access to finance, either through government programs, microfinance
institutions, or alternative financing options.
● Technology adoption: CMSMEs in Indonesia are generally slow to adopt
new technologies, particularly in rural areas where access to digital
infrastructure is limited. In other countries, CMSMEs may be more
tech-savvy, leveraging technology to improve their productivity, market their
products, and connect with customers.
● Business culture: Business culture in Indonesia tends to be more hierarchical,
with a strong emphasis on interpersonal relationships and face-to-face
communication. This can sometimes make it challenging for CMSMEs to
establish partnerships or secure contracts with larger companies. In other
countries, the business culture may be more egalitarian, with a greater
emphasis on merit-based decision-making and efficient communication.
● Infrastructure: Infrastructure is a critical factor for CMSMEs, particularly in
terms of logistics and transportation. In Indonesia, poor infrastructure can
make it challenging for businesses to transport goods and access markets
beyond their immediate region. In other countries, CMSMEs may have better
access to infrastructure, such as highways, ports and airports, which can help
reduce costs and increase efficiency.
 CHAPTER 3
CONCLUSION
Cooperative is a business entity owned and operated by its members which aims to
improve the welfare of its members economically, socially and culturally. Cooperatives aim
to empower their members through various activities such as business development, training,
education, and social development. Cooperatives also prioritize the principles of democracy,
justice, social responsibility and sustainability. UMKM (Micro, Small and Medium
Enterprises) is a form of business that has certain criteria such as a limited number of
employees, capital and turnover.
In the United States, cooperatives are known as cooperatives or co-ops, while SMEs are
known as small and medium-sized enterprises (SMEs). In European countries, cooperatives
are known as cooperatives or cooperatives, while SMEs are known as small and
medium-sized enterprises (SMEs) or micro, small and medium-sized enterprises (MSMEs).
Cooperatives and Micro, Small and Medium Enterprises (CSMEs) have an important role
in the Indonesian economy. Currently, CSMEs is one of the sectors that is considered
strategic in promoting economic growth, equity and increasing people's income, alleviating
poverty and reducing the unemployment rate. However, the practice of CSMEs in Indonesia
is still not optimal when compared to other countries. Several countries, such as South Korea,
Singapore and Japan have succeeded in developing CSMEs into a strong sector and play an
important role in their economy.
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