SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: INTRODUCTIONFast moving business is one of business sector that is growing rapidly; consumers expend a huge budget on this sector because the characteristics of fast-moving goods are the products with low price and purchases with a relatively high frequency. From a business perspective, the characteristics of fast moving goods is a business with a high sales volume, use extensive distribution channels, and have a very high inventory turnover. Dupre & Gruen asserts that the fast moving goods are high-profile businesses that need to adopt standards of Efficient Consumer Response (ECR) to ensure consumers could obtain their needs quickly and inexpensively.
Fast moving goods could be as a product of Small Medium Enterprises (SME) which promises a definite profit for a new entrepreneur. In Indonesia, most SMEs are fast moving goods business where owners rely on current cash flow for operating expenses. Its significant contributions (more than 50% of GDP), making Indonesia SME reliable as a foundation of national economy. Moreover, Indonesian SMEs proved its resistant global crisis that devastated large corporations, from the 1997-1998 financial crisis, to the economic recession triggered by the U.S. mortgage crisis in 20092010. Even banking as suppliers, intermediaries, and the receiver fund, also battered by the crisis that hit Indonesia, and its impact was felt directly by large enterprises that rely mostly on bank loans for business financing.
What actually make SMEs could retain from such crises? This becomes a quite interesting point of views to know how they survive, how they operate, how they manage the business, and off course more notably what are their secret success againts large enterprises.
Through the study of Social Economic Research Indonesia, SMEs became Indonesian economic savior. SMEs make major contribution to the GDP (Gross Domestic Product). The export activities has continued to increase because it has a specific local characteristics of Indonesia as a culture product. SMEs product is very flexsible so it can be run by lower or middle levels society. In addition, the capital needed to start is quite affordable, and it requires simple technology that depend on the ability of local communities.
Based on preliminary observations, SMEs in Indonesia succeed because of several advantages, SMEs provides a high innovation opportunities, people free to find a new thing through creation, SMEs also had an intimate human relationships even with their competitor, it also become the reason why they are stronger that large enterprises, they protect each other. SMEs provide significant number of workforces absorption, it really helpful to decrease unemployment number. SMEs are flexible and able to adapt to changing market conditions better than large-scale enterprises in general bureaucratic and managerial presence, also role of entrepreneurial dynamism. Source
Based on those phenomenas, this research aim to find success factors of SMEs product, for the purposes to help improve SMEs productivity and explore it potency, especially for fast moving goods, which is now becoming a popular business for many enterpreneur in Indonesia.