Kesiapan UMKM Jawa Timur Dalam Menghadapi Persaingan Dalam Asean Economic Community (AEC)

The purpose of this study is to describe the profile of SMEs in East Java, which only identified a single construct with two sides of perspective, benefits and problems. The method used is descriptive qualitative, using purposive sampling techniques. Data collection techniques are questionnaire, deep interviews and field observations. This research will give a huge benefit to other researchers to discover more about SMEs entrepreneur. The results also give informations that useful for futher researcher to analyze business problems and try to solve it. The results showed that the majority of entrepreneurs are male with average tenure of business less than three years. The most interested business sector is food and drink with average monthly revenues of 1 - 5 million rupiahs. In addition to having various advantages such as creativity, the courage to bear the risk, flexibility and autonomy in business management and easiness to meet the customer needs and wants. SMEs also have a variety of problems, among others, the difficulty of capital, poor management, wrong mind set, weak networking, lack of legal status and lack of knowledge. All the SMEs problems must be solve immediately and integrated among three parties, entrepreneurs, government and society. All the problems of SMEs causing them not able to compete in the AEC 201