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Problems Faced by Small and Medium Business: In Exporting Products

https://doi.org/10.51768/dbr.v10i2.102200915

Author Details ( * ) denotes Corresponding author

1. * Hotniar Siringoringo, Lecturer, Gunadarma University, Margonda, Indonesia
2. Prihandoko Lecturer, Gunadarma University, Margonda, Indonesia
3. Dharma Tintri, Lecturer, Gunadarma University, Margonda, Indonesia
4. Anacostia Kowanda, Lecturer, Gunadarma University, Margonda, Indonesia

The objective of this research is to identify and analyze the problems faced by exporters in conducting product export. Unit analysis is limited to Small and Medium Enterprises (SMEs) considering that they lack resources compared to big enterprises.

Since the problem is subjective in perception, questionnaire is used as the research instrument. Questionnaire was distributed to companies and was filled by their staff who is responsible to handle exporting activities. Data collected was then analyzed by using statistics tool, in order to verify the factors which influence the export problems significantly. The  result  of the  survey shows that  the factors which influence SME’s export performances in Indonesia are competition, long  duration of export document process, product quality, export barrier from country destinations, low capability in high production, delay in transportation, communication barrier, government agencies that presume become barrier, lack  of international market knowledge, barrier of entering international market, export administrative procedures, inefficient production cost,  unofficial fee  in  export documents processing, incapable to supply product in time,  lack of knowledge in transaction method, limitation of destination country, time  limitation in cargo, and delay  of shipping. As can be seen, the cause of some of export barriers is because of human knowledge as well as government authorities and agencies. The most important factors considered to overcome the barriers is to equip SME’s management with training and information.

Keywords

Exporting Problems, Entrepreneurs, Micro Business, Small Business, Medium Business.

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