Support from the local government has a big part to play in the success of micro, small, and medium enterprises (MSMEs). It is a well-known fact that small and medium enterprises often fail their business due to a lack of support. MSMEs often struggle to fulfill the regulations required by the local government. It is not common to find Pemkab to empower MSMEs.
Other than the regulation issue, MSMEs also struggle with capital resources. It is known that MSMEs begin with small capital. Business owners will not think about taking loans from the bank due to the long application process. Not to mention, MSMEs are not the main target for a bank loan. It only leads to the obvious result of rejection.
Pemkab Empowering MSMEs in Sorong
The local government (Pemkab) in Sorong, Wes Papua, approaches MSMEs differently. The government tries to find out how to empower small businesses to thrive with their MSMEs.
Yan Piet Mosso, the Acting Regent of Sorong, stated that the local government wants to support the MSMEs. The main reason for this decision lies in MSMEs’ contribution towards economic growth in the regency. Often neglected, MSMEs have real contributions towards local improvements.
Yan Piet Mosso understands that supporting MSMEs means:
- empowering local business owners.
- creates a healthy business environment among local communities.
Slowly but surely, MSMEs will carry out the improvement for the Sorong Regency community. The first support from Pemkab Sorong is in the capital. The local government has contacted one of the banks that provide loans for MSMEs.
Yan Piet Mosso informed us that a partnership between the local government and the bank had been finalized. Through this partnership, MSMEs can apply for interest-free loans from the bank.
It is not that the loan is free of interest. The local government of Sorong Regency will prepare the initial fund used for the capital. The government will put this fund in the bank. MSME owners who join this program will get capital from this fund. Thus, the interest is all taken by the government. MSMEs owners who took out loans at this bank only need to pay for the initial amount.
It shows the big support that the government gives for the growth of local MSMEs in Sorong Regency. After all, the government has included MSMEs empowerment as its strategic part to improve economic growth in the regency.
Big Step for Economy Growth
Yan Piet Mosso stated that the government’s partnership with the bank is not the only effort to support MSMEs in Sorong. He also claimed that the government makes another move to show its support. The local government has prepared policy interventions for MSMEs owners.
1. Simplify the Application Process to Obtain a Business Loan
The local government will simplify the application process to obtain a business loan. Each MSMEs owner will receive a business loan at a different amount. Each business comes in a different size and development stage. It also has different needs. Hence, the loan is given based on business size, production volume, and type of business.
2. Training for MSN+MEs Owners
Other than support in business loans and policy interventions, Yan Piet Mosso still mentioned one more support from the Sorong Regency government. The government has prepared training for MSMEs owners. The training uses specific materials to help these business owners manage their businesses. The name of the program is MSME business management training.
Through this training, MSMEs owners can learn how to manage the business capital that they have received from the bank. How to ensure the capital goes to the correct post and help the business become profitable for the long term. Sorong Regency government has contacted the experts who will deliver the training. They also prepare the materials for this training.
The obvious step of Pemkab to empower MSMEs in Sorong Regency is for this year and next. Signing a partnership with the bank has secured the capital loan for MSMEs.
