The OVOP Approach to Improve SMEs Business Performance: Indonesia’s Experience

Small and Medium Scale Enterprises [SMEs] haveproven to be one industrial group that is most sustaining duringeconomic crises. From the year 1997 through 2000, thecontribution of the SME sector has reached more than 46% of theIndonesia’s GNP and as such it is vital to further stimulate itsgrowth. This Paper discusses the One Village One Product (OVOP)approach to develop the business performance of SMEs. The studywas carried out at nineteen SMEs producing processed-food. Thestudy runs through a few excerpts from literature connected withSMEs and their role in the macro economic growth whileidentifying the factors that had a role in their growth. An overviewof the OVOP approach is presented followed by an analysis anddiscussion of data gathered. Finally, concluding comments on theimplementation model of the OVOP approach is presented