Identifying the degree of readiness of SME in Bandung for AFTA 2003

Abstract

This article aims to identify the degree of readiness of SME (Small and Medium-sized business Enterprises) in Bandung for AFTA (the ASEAN Free Trade Area) 2003. We believe that these SME share an important role with large companies in AFTA. Through exploratory study, we selected 35 respondents from the subsectors of the loacl garment, shoe, furniture and handicraft industries. It seems that they are not ready to face the challenges of AFTA 2003 because they have not adequately prepared the most critical indicators such as access to market, financial, technical, and management assistance and quality certification. However, from all of these branches, the shoe industry of Cibaduyut is the best equipped one since we know it has received technical support from the UPT (Unit Pelayanan Teknis or Technical Service Unit) and has managed to spread the fame of its brand name abroad. Finally, although the marketing dimension is more dominant then others, it has not reflected the real state of preparedness. SME must increase their co-operation with the Chamber of Commerce end each industrial association in order to take the proper preparatory measures. Despite its various weaknesses and limitations, we hope that our study will inspire further research the future.