HAVE SMALL MEDIUM TO BE A MOTOR FOR ECONOMIC GROWTH

Small businesses in the situation that there could not be used as an engine of growth for the largest population of micro enterprises in essence merely sub-systems. The position of SMEs, especially small businesses dominated by two sectors namely agriculture and trade, hotels and restaurants, so that a greater focus should also be addressed to both groups. In the trade, hotel and restaurant sector problem is very complicated because it is very easy to enter the new UK although with low skills. So that the barrier is very high productivity improvement due to the keen competition, especially in the sub - sectors of the retail trade.

Critical questions that must be answered is whether the sub-sector of small industries capable in motion in the short term, because it proved for three years past the same tendency crisis that is just survive from the downturn more severe. Barriers to increase the productivity of small and micro enterprises can not be separated from the ability to adopt the technology, including for the transfer of business, over the activities, over commodities. Because of all this even though they have undergone a transformation from agricultural to non-agricultural sector, but remains in the bottom board. If this situation can not be broken into then there is any program that is devoted to the development of micro enterprises are not able to increase the value added. Or if successfully added value would be absorbed by other sectors that provide inputs or support services for micro enterprises. These figures indicate that a small industry can not bear the expectation is too great to be an engine of growth.

For micro-enterprises which are on the economy, but it still faces structural constraints due to the confines of tradition and influence development policy in the past. One of the strong evidence of the occurrence of these confines is the low productivity per worker. To lift them from the confines of it has to do with setting priorities sharp. For example in the agricultural sector of the people, a special effort to look at the various possibilities raised large land farmers (over 1 acre) to be able to get out of the group of micro enterprises whose turnover was only under Rp. 50 million, - / year. The basic strategy for the growth of small business development, should dare to set individual targets to raise the potential of micro enterprises into small businesses. The creation of new small businesses has a key position as a battering ram rigidity confines low productivity. Multiply the number of micro-enterprises to get out of the group will make a motion "Big Impact" from the bottom of his own small business.

Of the support needed then the main prerequisite is that in the spirit of autonomy of each local government should provide administrative support and business environment conducive to the development of SMEs. It became an absolute due to regional autonomy, the authority of government regulation and development locally in the area. Macro and monetary policy nationally merely provide direction and resource allocation signals and international agreements on business in the area. Another important support is non-financial support in the development of SME business. A number of best practices in SMEs through incubators persuasion, bonded zones, business consulting and business relations between entrepreneurs in the cluster should be a lesson to seek conformity with the type of activity or industry and culture of the business community, including didalamya experience failure industrial environments try to move the location to the creation of clusters . Innovative clusters will grow with the development of the culture supports. Support the development of this kind must be grown into a commercially oriented business.

With two bases earlier approach will create a layer of entrepreneurs who can be a towing locomotive for progress of each layer of entrepreneurs. The goal clearly reproduce the micro-entrepreneurs who may soon be separated from each micro and subsequently make the cluster as a viable business unit and capable of growing (viable). These requirements must be met to make a small business as an engine of growth.