DOI: 10.5176/2010-4804_2.3.221

Authors: Dana Santoso Saroso, Fauzi

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{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465} 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.

Keywords: SME; OVOP; Government policy; Small scale
industry

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