Small businesses 'need good marketing': Mar'ie

Small businesses 'need good marketing': Mar'ie

JAKARTA (JP): Minister of Finance Mar'ie Muhammad said the
main problem facing the development of Indonesia's small
businesses was not money but marketing and human resources
quality.

He cited as an example PT Sarana Sulsel Ventura, a venture
capital firm in South Sulawesi, which had allocated Rp 10 billion
(US$4.2 million) to help small businesses in the province but
could not distribute all the funds.

"Up until now it has only managed to distribute about Rp 3.5
billion to a number of small businesses," he said in
Ujungpandang, South Sulawesi, where he was visiting several of
the province's small businesses Saturday.

Small companies in the province which have problems with human
resources and management cannot make use of Ventura's funds.

Mar'ie said that, due to inferior human resources, many small
businesses had serious bookkeeping problems. As a result they
could not evaluate their assets and profit.

He said it was very difficult to find a bookkeeping teacher in
regencies, where most small business were based.

"Therefore, more serious efforts are needed to develop the
small businesses," he said.

He said the ministries of manpower, agriculture, industry and
trade, rural banks, and Bank Indonesia (central bank), had
organized special training for small businesses to improve their
entrepreneurship.

He added that the government would also further encourage
small financial institutions such as venture capital and rural
banks to give more funds to small businesses.

The minister said the government would hold a limited cabinet
meeting every three months to discuss the development of small
businesses.

According to the Central Bureau of Statistics, 99.8 percent or
33.4 million of the 33.5 million businesses in Indonesia in 1994
were small enterprises, each with a turnover less than Rp 1
billion a year.

Mar'ie said that like Indonesia, other developing countries
also faced a dilemma in developing their economies. But every
time Indonesia tried to strengthen its business sector, small
businesses ended up lagging further behind.

He said most developing countries were former colonies. By the
time they gained independence, their leaders vowed to accelerate
the development of their economies.

"That's right. We cannot blame them. Their people suffered
during colonization. If they don't pursue development they risk
being disliked by their people," he said. (bnt)