The Owner Factor: An Innovation Element of Business Model Canvas by SMEs Rattan Industry in Cirebon Indonesia

Hindarsah, Ida and Purwanto, Bambang Heru and Priadana, Sidiq and Fahrudin, Adi (2020) The Owner Factor: An Innovation Element of Business Model Canvas by SMEs Rattan Industry in Cirebon Indonesia. International Journalof Advanced Science and Technology, 29 (6). pp. 3963-3972. ISSN 2005-4238 IJAST

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Abstract

ndonesia is the largest rattan producing country in the world. It is estimated that 80% of rattan raw material worldwide is produced by Indonesia, the rest is produced by other countries such as the Philippines, Vietnam and other Asian countries. In 2003-2006 the rattan industry in Indonesia experienced ups and downs with an average of 0.38% per annum and a decrease of an average of -3.63% per year. Most of the rattan industry players are from West Java Province, to be exact from Cirebon. Small Medium Enterprises (SMEs) is one of the actor of this trading industry. Although some SMEs are experiencing collapsed due to intense competition in the globalization era. Nevertheless, there are still several SMEs that can survive to this day. So in this connection, the question arises of business model innovations such as what is done by rattan SMEs in Cirebon Regency in facing business competition in the globalization era? This paper using qualitative method to describe the innovation components applied by SMEs. The result shows that rattan industry SMEs in Cirebon Regency based on BMC approach they applied all the components and one component plus that is owner predisposing factor which is the basic behavior of the owner that will influence the application of the entire component of business model.Keywords: business model canvas, innovation of business model, small medium enterprise, rattan industry1. IntroductionIndonesia is the largest rattan producing country in the world. It is estimated that 80% of rattan raw material worldwide is produced by Indonesia, the rest is produced by other countries such as the Philippines, Vietnam and other Asian countries. In 2003-2006 the rattan industry in Indonesia experienced ups and downs with an average of 0.38% per annum and a decrease of an average of -3.63% per year. In 2012 Indonesian exports in the rattan handicraft sector experienced a trend of 4.45% (from 46.17 million in 2012 to 42.15 million US $ in 2014) compared to the period 2008 to 2011.Most of the rattan industry players are from West Java Province. The Ministry of Industrynoted there are 665 businesses engaged in rattan for various needs, including furniture and equipment. It isabout 330 (49%) of this industry operates in the West Java region, specifically Cirebon Regency. The rest of it operates in the provinces of East Java, Bali, Central Java, Special Region of Yogyakarta, Banten, and SpecialAreas of the capital city of Jakarta, North Sumatra, South Sulawesi and North Sulawesi [1].Cirebon is one of the districts in the Indonesian region, which is the largest producer of finished rattan products in Indonesia. Cirebon contributes at least 80% of Indonesia's finished rattan product exports. Rattan industry is the main livelihood of residents of Cirebon and surrounding areas such as Kuningan, Indramayu and Majalengka.

Item Type:	Article
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance T Technology > TX Home economics
Divisions:	Faculty of Social and Political Sciences > S1 Social Welfare Science / Ilmu Kesejahteraan Sosial
Depositing User:	Prof Dr Adi Fahrudin
Date Deposited:	01 Mar 2021 13:44
Last Modified:	01 Mar 2021 13:44
URI:	http://repository.umj.ac.id/id/eprint/3844

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