Problems Faced by Small and Medium Business in Exporting Products

Abstract

Since the problem is subjective in perception, questionnaire is used as the research instrument. Questionnaire was distributed to companies and was filled by their staff who is responsible to handle exporting activities. Data collected was then analyzed by using statistics tool, in order to verify the factors which influence the export problems significantly. The result of the survey shows that the factors which influence SME’s export performances in Indonesia are competition, long duration of export document process, product quality, export barrier from country destinations, low capability in high production, delay in transportation, communication barrier, government agencies that presume become barrier, lack of international market knowledge, barrier of entering international market, export administrative procedures, inefficient production cost, unofficial fee in export documents processing, incapable to supply product in time, lack of knowledge in transaction method, limitation of destination country, time limitation in cargo, and delay of shipping. As can be seen, the cause of some of export barriers is because of human knowledge as well as government authorities and agencies. The most important factors considered to overcome the barriers is to equip SME’s management with training and information.

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