The OVOP Approach to Improve SMEs Business Performance: Indonesia’s Experience

Abstract

Small and Medium Scale Enterprises [SMEs] have
proven to be one industrial group that is most sustaining during
economic crises. From the year 1997 through 2000, the
contribution of the SME sector has reached more than 46% of the
Indonesia’s GNP and as such it is vital to further stimulate its
growth. This Paper discusses the One Village One Product (OVOP)
approach to develop the business performance of SMEs. The study
was carried out at nineteen SMEs producing processed-food. The
study runs through a few excerpts from literature connected with
SMEs and their role in the macro economic growth while
identifying the factors that had a role in their growth. An overview
of the OVOP approach is presented followed by an analysis and
discussion of data gathered. Finally, concluding comments on the
implementation model of the OVOP approach is presented.