Synchronization Model for Empowering MSMEs: Critical Evaluation Based on Literature Review

Abstract

This research was conducted as a case study and qualitative analysis to address three main issues: identifying models for synchronizing practices between policies, programs, and MSME (Micro, Small, and Medium Enterprises) empowerment activities; evaluating the strengths and weaknesses of each model; and determining the necessary steps to implement the best synchronization model across ministries and state institutions. Data collection was performed through a 'desk review' of research results and relevant theories. The study identifies four practical MSME synchronization models and five theoretical models. Practical models have weaknesses due to a lack of critical, clear, and firm theoretical foundations. In contrast, the theoretical self-governance model is identified as the best model because it is based on robust theoretical principles. Implementing the self-governance model requires several steps: fostering awareness and commitment to the self-governance concept, conducting joint activities to explore theoretical concepts, obtaining competency certification related to self-governance-based MSME synchronization, and establishing a national commitment to MSME development. The research recommends establishing the National Council for MSME Development, chaired by the president, adjusting the institutional regulations of the Ministry of Cooperatives and SMEs to act as the coordinator of MSME empowerment programs, and increasing the authority of the Ministry to effectively align MSME policies. Additionally, it calls for budget allocations for the Ministry to build a comprehensive database and reporting system for MSME empowerment programs. The research results are expected to contribute significantly to developing more coordinated and effective MSME empowerment policies in Indonesia.