SMEs and Local Wisdom Development Towards Innovative Products

Abstract

In the age of globalization and fast changing consumer demand, innovation is the answer for the SMEs to get advantage over the competitors. But actually the SMEs who own the small business might think it is indirect with them because when they hear the wording “Innovation” they feel like facing the bitter medicine that makes their business more complicated. The writer of this article has her own point of view to present that the innovation is not that complicated because the SMEs can access to many government agencies, education sector, and financial institutions that is ready the serve and support them. What the SMEs need is changing the way of thinking, keep searching for information and opportunity by finding out the customer’s need and satisfaction and benchmark with your best competitor. The SMEs can start with small steps of innovation by improving their own products, use the new ideas, then create processes of innovation that serve the customer’s need until it can create customer loyalty. When the SMEs learn about creative innovation products they will continue to create other innovative products and finally it will drive their business and create economic value.