Efficiency Analysis and Smoked Fish Business Development Strategy in Kendal Regency

Abstract

MSME was proven to have a positive impact on economic growth, thus MSME’s business needs to become sustainable. MSME’s business sustainability is determined by the MSME’s ability to manage their profit efficiency and develop their business strategy. This study aims to examine the profit efficiency of the smoked fish business as one of MSMEs and the BUMDes development strategy in coastal community Tambaksari, Kendal Regency. The quantitative approach was conducted in this study. Primary data from 30 smoked fish entrepreneurs and 3 key person of BUMDes were collected by interview and questionnaire, then analyzed with Stochastic Translog Profit Frontier Analysis and Analytic Hierarchy Process (AHP). The results show that the efficiency of the smoked fish business still low due to age and education of the human resources. In addition, the propose strategies for develop the BUMDes are managerial training, comparative studies, and coordination with stakeholders in improving performance. The implication of this study is useful for smoked fish entrepreneurs and BUMDes to increase profit efficienct and develop strategy in order to make the business sustainable.