Socialization of Business Legality for Micro, Small, and Medium Enterprises (MSMEs) to Improve Community Economy During the Covid-19 Pandemic in Perca Village, Sindangsari Village, East Bogor City

Yenny Febrianty, Mustika Mega Wijaya, Nazaruddin Lathif

Abstract


Effortmicro, small and medium SMEs) have a very large role in advancing the Indonesian economy where MSMEs contribute greatly to employment, which absorbs more than 99.45% of the workforce and contributes to the Gross Domestic Product (GDP) of around 30%, besides that MSMEs also absorb a large number of workers. Indonesian workers who are still unemployed. MSMEs are one of the important foundations of the Indonesian economy. This type of business is not much affected by fluctuations in inflation, is flexible, and does not depend much on the macro-financial system. MSMEs also play a very important role in strengthening the economic system of the grassroots community. The problems currently faced by the Micro, Small, and Medium Enterprises sector, especially the manufacturing industry sector in general, are (a) the low quality of human resources in the field of information technology and business planning; (b) the limited capital capacity of small and medium industrial enterprises; (c) the role of the supporting system for the development of small and medium industrial enterprises by the local government is not yet optimal, and (d) government policies and regulations that are not supportive/not in favor of the development and progress of the Micro, Small and Medium Enterprises sector, the manufacturing industry sector. UMKM itself is a business entity that is one of the appropriate containers and vehicles for the implementation of national development in the economic sector, especially in the field of efforts to increase greater capacity for the economically weak to participate in the development process. This for MSME managers is a role and function in building and developing the economic potential and capabilities of the community to improve their economic and social welfare and enhance their quality of life. Small and medium enterprises (SMEs) need special protection in facing the free market. The expected protection is in the form of, among other things, strengthening the capacity of human resources, capital, training, promotion, and a conducive business climate. MSMEs, both those on a micro, small, and medium scale, are recommended to have a business license.  A business permit is a form of official document from the competent authority, which states that a person or entity is legal/permissible to carry out a particular business or activity. So, how important is the 'business license' in the context of doing business, especially for Micro, Small, and Medium Enterprises (MSMEs), so that they can be protected, there is certainty in doing business and enjoying the comfort and security they deserve, so they can contribute more significantly to the world. in increasing the added value of production, supplying goods and services needed by the community, absorbing labor, and disseminating the growth of entrepreneurship. Perca Village in Sindangsari Village is one of the icons of the city of East Bogor. The Sindang Sari Village has a vision, which is to become an orderly trade center with a comfortable residential environment and an empowered community. This village has the concept of making a thematic village. Thematic Villages are the target points for the sub-district to improve by taking into account the following: changing slum locations to non-slum areas / improving/improving environmental conditions, increasing intensive greening of areas, involving active community participation, elevating the social and economic potential of the local community (empowerment).


Keywords


UMKM; Perca Village; Economic Prosperity

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References


Law Number 25 of 1992 concerning Cooperatives.

Ninik Widiyanti and Sunindhias, "Cooperatives and the Indonesian Economy", Jakarta: Bina Script, 1989.

Heri Kusmanto, Warjio, The Importance of Business Legality for Micro, Small and Medium Enterprises, JUPIIS: Journal of Social Sciences Education, 11(2) (2019): 320-327 DOI: https://doi.org/10.24114/jupiis.v11i2.13583.

Dinalara D Butarbutar,Mustika Mega Wijaya, Cooperative And Msme Empowerment Strategies in Economic Recovery During The Covid-19 Pandemic in Bogor Regency Indonesia,http://ieomsociety.org/proceedings/2021monterrey/757.pdf, Proceedings of the International Conference on Industrial Engineering and Operations Management Monterrey, Mexico, November 3-5, 2021.

Business Legality: Definition, Types, and Benefits, https://majoo.id/solusi/detail/legalitas-usaha, accessedon December 07, 2022.

Sindangsari Village Profile,https://kelsindangsari.kotabogor.go.id/welcome/profile, accessed on the 15thDecember2022, At. 20.15 WIB.




DOI: http://dx.doi.org/10.18415/ijmmu.v10i7.4981

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