Optimizing Local Market Potential: Strategies for Small and Medium Enterprises

Abstract

This paper discusses strategies that can be implemented by small and medium enterprises (SMEs) to optimize the potential of the local market in Indonesia. With rapid economic growth and increasing demand for local products, SMEs have significant opportunities to improve their competitiveness. This study uses a qualitative approach, with in-depth interviews with 15 SME owners who have succeeded in exploiting the local market. The results show that understanding consumer needs, product innovation, and the use of information technology are key factors in optimizing marketing and increasing sales. In addition, this study also identifies challenges faced by SMEs in reaching the local market, such as limited access to information and resources. Thus, this paper recommends the importance of collaboration between business actors, government support, and training programs to improve SME capabilities. The right strategy can not only improve business sustainability but also contribute to overall local economic growth.