ABSTRACT
The aim of this research is to increase the chances of developing SMEs (Small and Medium Enterprise) by creating a system design that integrates local business SMEs, the traditional market and the modern store. The method used is qualitative with a system design approach. Data was collected through observation of the existing system and through interviews with SMEs and traditional traders. The result of this research is system integration. System integration is the contribution between the modern market and the traditional market, and will have a wider impact, not only on economic growth of Banyuwangi Regency, but also on society as an economic agent. For the government of Banyuwangi Regency, it will have two benefits: in ensuring that the trend of economic growth continues to be positive, and also in protecting local entrepreneurs and traders in the traditional market. The hope is that Banyuwangi Regency can be a role model for other regions if it is able to implement the integration of a modern market system with the traditional market.
