The Role of Indonesian Micro, Small, and Medium Enterprises Owners in Choosing e-Commerce Strategy in the Global Market

Abstract

Global Market is an inevitable reality that must be faced by all countries including Indonesia. Rapid development prompts every country and business communities to be able to compete in achieving success, including Micro, Small and Medium Enterprises (MSMEs). In Indonesia, MSMEs are one of the important and strategic business sectors that can withstand the Indonesian economic crisis in 1998 and the global crisis in 2008. The increasing number of MSME entrepreneurs after the 1998 crisis reinforces those facts, even until 2012 MSME was able to absorb 85 million to 170 million workers. Moreover, the largest contributor to GDP (Gross Domestic Product) in Indonesia derives approximately 60 percent from the MSME sector down to date. The role and strategy of MSMEs in terms of making right decisions and taking right attitudes are indispensable to be up against business competition in the global market. There are several constraints faced by MSMEs in developing countries, ranging from cultural factor to technology. Therefore, the role and strategy of risk takers in changing their Micro, Small and Medium Enterprises is considered extremely important. One way that MSMEs use in dealing with changes in the Global Market is through e-commerce. E-commerce technology can improve economy of the community through the ease of buying and selling done by online so that the market share is increasingly wide open. E-commerce is able to make a transaction faster, practical, efficient and safe. Keywords—Micro Small and Medium Enterprises, Ecommerce, Global Market