Benefits of Globalization for Small and Medium Sized and Micro Enterprises in Rural Indonesia Essay

What are the benefits of globalization for small and medium sized and micro enterprises in rural Indonesia? You need to know the meaning of globalization first. What is globalization? Let me explain what globalization means. Globalization is a common term for processes of international integration arising from increasing human activity and interchange of worldviews, products, ideas, and other aspects of culture.

In particular, advances in transportation and telecommunications infrastructure, including the rise of the Internet, represent major driving factors in globalization and precipitate further interdependence of economic and cultural activities. So, in the modern era, globalization is a world market activity that not only about selling a product, but also a promoting the culture, political agreement, healthcare, population growth and so on. Now, what are the benefits for small and medium sized and micro enterprises in rural Indonesia? Can small and medium and micro enterprises in Indonesia contribute or success in the globalization era?

My answer is yes. How could a small and medium and micro enterprises being success in the globalization and give a good contribution in the globalization? I will give examples of small and medium and micro enterprises from the other countries. Rajanacrafts from Cambodia. Rajana started out in 1995 as a project of a UK based charity, SAO. Two young Cambodians learned basic card making and silk painting techniques, selling out of the home of the founder. Their business grew and in 2000 it was recognized by the Government of Cambodia as a local association.

Rajana is a fair trade producer of a variety of Cambodian handicrafts and also a fair trade buyer, helping 122 families in rural Cambodia. Now, they export their handicraft to many countries and fortunately they have a good relationship with a big express delivery company that made their export activity easier. Fresh Produce Exporters’ Forum, Tyger Valley, South Africa. The Fresh Produce Exporters’ Forum of South Africa (FPEF) was formed in 1998 to create, within free-market principles and a deregulated environment, a prosperous but isciplined fruit-export sector. FPEF provides leadership and services to its 66 members, which represent 76% of the fresh fruit volume exported from South Africa. The membership profile includes exporters, producer-exporters and industry related service providers. Fresh produce is a major export industry for South Africa, earning over R8bn in foreign currency, and providing over 400,000 jobs. South African fruit is generally of a high quality and much desired by international buyers.

Market opportunities are opening up in the People’s Republic of China, Russia, the Middle East, Eastern Europe, India, and in Africa. Many markets with great potential are distant from South Africa but FPEF is committed to maintaining the high quality that has earned South African produce its prestigious reputation. From those two examples of small and medium and micro enterprises, we can conclude that small and medium and micro enterprises can be success in globalization era and bring a good contribution for their country in participating globalization.

Now we were going back to our country, very big country, and our beloved country, Indonesia. Indonesia have 17,508 islands which are 6000 islands inhabited, have a large number of biota and environment, more than 200 millions people live in this country, have a 300 distinct native ethnic groups, and 724 different languages and dialects. We can see how big and how rich our country. That’s why I can say small and medium and micro enterprises in Indonesia can be success and brings a good contribution for their country.

The diversity in this country made great influences to bring small and medium and micro enterprises more excited to bring contribution in globalization for Indonesia. The benefits of globalization for small and medium and micro enterprises in Indonesia are they can make their small business into a big business by exporting their product like handicraft. In Indonesia, there are so many handicraftsmen that produce a beautiful handicraft with so many different types and shapes each town that has potential to be exported to whole country. I’m sure it can be a great export activity for Indonesia.

Take a look at this woman, Fathia Sa’adah from Pekalongan, Central Java. She is the owner of batik handicraft from Pekalongan. She is the successor of her family business that pioneered since 1975’s. Started by his grandmother and his parents, to herself. She started concentrating on her business after she quit from her job in 2000. She trying to grows her business and she decided to open a batik store. Her business was growing fast and now she has three batik stores. On the next step, she trying to grow her business again and trying to deal with the globalization era.

Fortunately, she succeed exported her batik to some country like Japan, USA, and Spain. She can get profit around 200 millions rupiahs each month only from her batik that exported to Japan. Amazing right? She is only once of many small and medium and micro enterprises in Indonesia. We can look that the benefits of globalization for small and medium and micro enterprises is a tool for make their business grow, give the opportunity for small and medium and micro enterprises to open their business into the international market activity, and so on.

Also the benefits for the country are open a new job for unemployment, push the low economic people to try make a business in order to improve their economic level, increase the level of tourist that also can increase the inland revenue, and so on. Well, that’s all the explanation and example of the benefits of globalization for small and medium and micro enterprises in rural Indonesia. The Benefits of Globalization for Small and Medium and Micro Enterprises in Rural Indonesia [pic] Aldi Anugerah 1110081100008 Management 5th Semester State Islamic University Syarif Hidayatullah Jakarta