Philippine E-Journals

Toward a Model of Traditional Retailers and Sellers Empowerment in Improving Competitiveness against Modern Markets in Banyumas Region, Indonesia

Eko Suyono Jenderal Soedirman | Omar Al Farooque | Riswan Riswan

 

Abstract:

With the rapid expansion of modern markets (i.e., supermarkets and minimarkets), traditional retail businesses are facing huge challenges in the Banyumas region, Central Java, Indonesia to survive and continue doing businesses.  While modern markets are supported by huge number of resources, including unlimited funding, modern infrastructures, professional human resources, global networking, and so forth, traditional retailers and sellers lack these resources to compete with the new supermarkets and minimarkets.  To promote populist economic system, the government’s role in terms of policies, education and training, and funding assistance are very important in supporting the sustainable development of these traditional businesses.  The aim of this research is to develop a model on traditional retailers and sellers’ empowerment to improve their competitiveness against modern markets in Banyumas region.  Implementing a mix method of qualitative and quantitative approaches, this study is conducted through questionnaire survey, observation, in depth interview, and focus group discussion.  The findings of this research have identified the problems of traditional retailers and sellers’ competitiveness against the modern markets, which are expected to be overcome through government, trade association, and community supports.  The study also provides an alternative model to optimize the potential of traditional retailers and sellers in the face of competition with modern markets.  The outcome of this research will help us develop a software—System Development Life Cycles (SDLC) approach—to help all traditional retailers and sellers in improving their professionalism and competitiveness in the business.