Analysis of Social and Economic Aspects of MSMEs Kepang Geger in The Perspective of Sharia SKB

Kamelia Khasanah

Universitas Trunojoyo Madura, Indonesia

220721100037@student.trunojoyo.ac.id

Keywords

Abstract

Business Feasibility Study, Cake Braids, Qualitative

MSMEs play an important role in reducing unemployment, alleviating poverty, and promoting economic growth. This study aims to assess the socioeconomic conditions of kue kepang business owners in Busela, Dabung, Geger, Bangkalan, Madura, and evaluate the feasibility of the business from a social and economic perspective. This qualitative research used in-depth interviews and observation to collect primary and secondary data directly from the business location. The data were analyzed descriptively to understand the socioeconomic phenomena related to the Kue Kepang business. The findings show that the Kue Kepang business significantly empowers the local community by providing jobs for 10-15 people. The business not only maintains and promotes local cultural heritage but also contributes to regional economic stability. The average monthly income of business owners ranges between IDR 5,587,714 and IDR 5,915,000, depending on whether they rent or own their business premises. However, the business faces risks such as fluctuating raw material prices and competition from similar products that need to be managed for sustainable growth. The study concludes that the Kue Kepang business is viable and beneficial from an economic and social perspective, contributing significantly to local community development and cultural preservation.

Corresponding Author: Kamelia Khasanah

E-mail: 220721100037@student.trunojoyo.ac.id

INTRODUCTION

One of the main issues facing the global economy today is economic growth, which is also a long-term issue. Naturally, a country's economic growth process offers favorable conditions for all types of economic activity, including industries of all types, from small businesses to large businesses. The high rate of unemployment and poverty in Indonesia is caused by the country's uncertain economy, which includes layoffs (PHK) and also the educated unemployed who are unable to find work (Hanifah, 2021). This means that to reduce poverty and eliminate unemployment, the government must act effectively.

Micro, small and medium enterprises (MSMEs) are very important to the Indonesian economy in terms of the number of companies and the number of jobs they generate. MSMEs are significant contributors to a country's economy (Ruslaini, 2021). MSMEs are very important for reducing unemployment, poverty, and distributing income in developing countries (Nursini, 2020). MSMEs are critical to Indonesia's economic growth and have played a major role in the country during the crisis. A company or business is investigated in depth to see whether the company or business can be operated effectively through an activity known as a business feasibility study (Tumiwa & Nagy, 2021). Business feasibility research is carried out to find possible problems. In other words, a company's feasibility study will take into account various things that might make investment prospects difficult (Juminawati, Hamid, Amalia, Mufraini, & Mulazid, 2021). At the very least, this can provide direction or suggestions to business people for the work to be done in the future with the help of a feasibility study. An activity called a “Business Feasibility Study” investigates a project in depth to see whether it can be implemented. In-depth studies need to measure and analyze results using certain procedures in addition to conducting thorough research on the available data and information to get the most out of the study.

Kue Kepang is one of the MSME companies in Geger Bangkalan. This company operates in the food industry, and its main product is braided cakes. Kepang Cake belongs to Hamimah, the owner. This home business has been operating since 2010 and has been around for quite a long time. The marketing reach of the product is quite broad, because it involves direct sales to consumers through channels such as retailers (nearest retail stores), direct sales to end users, and direct purchases by consumers to production sites, as long as Cake Bangkit supplies are still available. The price of braid cake is IDR 15,000 per box. The following is sales data from Cake Braid

Table 1 Kepang Cake Sales Data for 2023

SALES DATA	YEAR 2023
January	120 bks
February	100 bks
March	95 bks
April	150 bks
May	110 bks
June	99 bks
July	110 bks
August	90 bks
September	115 bks
October	100 bks
November	95 bks
December	120 bks

Source: 2023 Kepang Cake Sales Report

Table 1 shows sales data for Kenanga Braided Cakes in 2023. The company owner has not sold his goods outside Bangkalan province, which is the cause of its slow growth. Small and medium-sized businesses need growth to operate effectively, and this growth can come from marketing, revenue, and other sources. When one considers the above-mentioned issues that companies have with business management, it is clear that certain protocols have not been followed. This protocol includes a feasibility study analysis of the business from a marketing perspective and the lack of significant development demonstrated by management at the time of founding. Based on the background explained above, the researcher was motivated to conduct this research because assessing business feasibility is crucial for the growth of business initiatives with the title "Analysis of Business Feasibility Studies in Micro, Small and Medium Enterprises (MSMEs) Kepang Cakes Viewed from Social Aspects and Economy".

Business Feasibility study

A business feasibility study is research that concerns various aspects, from legal, socio-economic and cultural aspects, market and marketing aspects, technical and technological aspects to management and financial aspects, where it is used as a basis for feasibility study research and the results are used to draw conclusions. A decision feasibility studies are usually classified into two parts based on the orientation expected by a company, namely:

Economic Aspects

The economic aspect is an aspect of social geography that is related to economic matters. The economic aspect itself discusses how the company develops, which of course has a positive impact on the income earned. Not only that, human resources (HR) must also be appropriate to the circumstances in which we start a business because economic growth has an effect on this.

Social Aspects

The social aspect is the result of human activity with the surrounding nature/environment, one of the forms of which includes oppression (Hunnicutt, 2019). Regarding oppression, it is violence, threats and coercion carried out by someone against another person who involves an imbalance of social power or other people (Hogers, 2023). The company's main goal is to seek maximum profits (Aguirre, 2020). However, companies cannot live alone, companies live together with other components, one of the other components in question is social institutions so that in the framework of this balance, companies should have social responsibility (Turker, 2018).

Micro, Small and Medium Enterprises (Mumkm)

Businesses known as micro, small and medium enterprises (MSMEs) are able to expand job opportunities and offer economic services to the community. MSMEs can help achieve national stability, encourage economic growth, and contribute to the equalization process by increasing people's income. MSMEs have the potential to drive community economic activities and function as the community's main source of income, thereby increasing welfare (Tekola & Gidey, 2019).

MSMEs are a business sector that has an important role in a country's economy because of its contribution to creating jobs, driving the local economy, and supporting overall economic growth (Dasaraju, Somalaraju, & Kota, 2020). MSMEs usually have a smaller business scale compared to large companies, but have an equally important role in advancing the economy.

MSMEs are also often identified based on certain criteria such as number of employees, sales turnover and assets owned (Gupta & Barua, 2016). For example, in some countries, a business is considered an MSME if it has less than a certain number of employees, sales turnover is below a certain limit, and assets owned do not exceed a certain amount. MSMEs are also often known for their flexibility in adapting to market changes and consumer needs. They tend to have simpler organizational structures, allowing them to be more responsive to changes in the business environment. MSMEs also often become a source of new innovation and develop into larger companies over time.

MSMEs also provide opportunities for young entrepreneurs and women to get involved in the business world. They often play an important role in local economic empowerment by providing opportunities to individuals who may not have previously had access to the formal labor market. This helps increase social and economic inclusion in society.

MSMEs are also often the guardians of cultural diversity and local heritage. They often use local raw materials and traditional techniques in their production, which promotes and preserves the unique culture of a region. In this way, MSMEs not only play a role in economic development, but also in maintaining the identity and cultural diversity of a region.

This study aims to assess the socioeconomic conditions of kue kepang business owners in Busela, Dabung, Geger, Bangkalan, Madura, and evaluate the feasibility of the business from a social and economic perspective.

RESEARCH METHODS

This research uses qualitative research as its research method. This research was carried out intensively, in-depth and comprehensively by being directly at the object, especially in efforts to collect data and various information. By using various scientific techniques, qualitative research seeks to understand the phenomena experienced by research subjects through descriptions of words and language in certain natural settings. Primary data and secondary data are the types of data used in this research. Interviews and observations are the methods used in this research to collect data.

During the research, the data obtained will be analyzed descriptively qualitatively, using words arranged in the text. Within the specified time period, data analysis will be carried out simultaneously with and following the conclusion of data collection in qualitative research. The interviewer's responses will be analyzed by the researcher during the interview. The researcher will continue asking questions until the researcher receives a satisfactory response from an informant if they provide an unsatisfactory response.

RESULTS AND DISCUSSION

Research sites

Kue Kepang is a home-based micro, small and medium enterprise (MSME) engaged in the culinary sector that sells Cake Kepang. Kue Kepang started its business in 2010 located in Buselah Geger Bangkaln, East Java.

Business History

Since the beginning of the Kepang cake business, this business has used a word of mouth sales system or what is usually called Word of Mouth (WOM). Consumers can buy Kepang cakes directly at the production site and can also buy directly to consumers. As time goes by, the owner of Kepang cakes sells their products to nearby shops (Niode, 2023).

Potency Economy

Business cake braid own potency for give contribution significant economics, ESP. Through creation field Work and enhancement income for owner business and employee. With consider turnover sale and potency profitability, business this can become source stable incomefor the owner as well as push growth economy loca (Cousins, 2023)l.

Empowerment Social

Through business cake braids, available potency for empowering public local, esp. woman and youth, with create opportunity Work And increase Skills. Business This Also can become tool for look after and promote inheritance culture local, which is important for identity and continuity community Bangkalan above. By integratingsecond aspect this is a cake MSME braid can become drier development economy and social sustainability in the region

Business Profile

From the results of interviews with the owner regarding this business, business activities are driven in a conventional system (human resources. The role of the business owner is to be fully responsible for all activities of Kue Kepang. The main product sold in this business is Kue Bangkit. There are also other products such as pineapple which is only available specifically for Eid.

Social and Economic Aspects

From the results of research on social and economic aspects of MSMEs in Kepang cakes in Upper Bangkalandi, in the context of a business feasibility study, several relevant findings can be the basis for evaluating the potential of the business:

a. Social Impact

The braid cake business in Geger can empower the local community; it is proven that 10-15 people become employees according to interviews on 15\06\2024; on average they feel comfortable because they have an income. The study can illustrate how this business maintains local traditions of making braid cakes, as well as promoting and preserving regional cultural heritage.

b. Economic Impact

Studies can evaluate the economic contribution of the braid cake business, including sales turnover, income generated for business owners and employees, as well as contribution to regional and national income.

c. Risk Analysis

A business feasibility study must consider the risks that a braided cake business may face, such as fluctuations in raw material prices, competition with similar products, changes in consumer preferences, and regulatory issues (Poku & Ansah, 2014).Social risks such as a lack of skilled labor or changing consumer trends also need to be taken into account. In this aspect, the social aspect involves a positive impact on the surrounding community, such as employment opportunities, as proven by the existence of several communities that can improve the welfare of the community. And the social aspect

CONCLUSION

Based on the results of research data processing, the Kepang Cake business has been implemented based on a business feasibility study through economic and social aspects. From an economic perspective, Cake Bangkit Kenanga is deemed feasible because the target market is well-defined. The product strategy, including innovative products and strategic distribution through sweet shops, aligns well with consumer expectations. Additionally, the pricing is affordable, and promotional efforts, although needing enhancement, are aimed at attracting consumer interest. From a social perspective, the business has the potential to create new jobs, increase household income, and expand access to local and regional markets. Moreover, it can serve as an agent of community development by empowering local producers, preserving cultural heritage, and promoting social inclusion through skills training and participation in social activities.

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