ABSTRACT
This study specifically aimed to describe: (1) strategic factors in micro, small, and medium enterprises (MSMEs) in dealing with the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC); (2) the potency of business performance improvement in dealing with the AEC; and (3) a strategy of business performance development for MSMEs in dealing with the AEC. This research comprised an explorative descriptive study that analyzed the performance strategy of MSMEs. A survey was performed on five clusters of superior MSMEs in Semarang, namely batik, food processing, handicrafts, tourism, and bandeng. The population of this study consisted of MSME entrepreneurs who joined in the clusters in Semarang. Semarang was selected as the study location based on aspects of the city’s economic development plan, especially in trade. Semarang’s existing potential can be improved so that the city can compete in the AEC free market. The sampling of MSME entrepreneurs was decided purposively based on their homogeneity and on the real condition of MSME clusters in Semarang. The sample included 100 entrepreneurs with 20 people representing each of the five clusters. The processed data collected from the field were 78% from the sample, and were analyzed through a strengths, weaknesses, opportunities, and threats (SWOT) analysis. The results of this study showed that MSMEs can utilize their strengths to seize opportunities such as the establishment of clusters in order to build and manage relationships with the government and other parties. To minimize MSMEs’ weaknesses, especially a low level of knowledge, a strategy can be created to exploit opportunities such as taking part in training and business development activities.
