Incentivize collaboration in MSME training and mentorship
Policies Involved
Challenge
Micro and small entrepreneurs often face limited budgets and resources to appropriately train themselves and their workforce. Organizations such as large businesses, universities, and non-governmental organizations can be effective catalysts for smaller-sized enterprises to access market and industry knowledge, and evolve through training, mentorship, and other activities. However, there is currently little incentive for organizations to invest their resources to do so, especially if the activities don’t align with their organizational objectives. For example, larger businesses in DKI Jakarta often conduct training for MSMEs as part of their corporate social responsibility (CSR) program, which are separate from the commercial activities of the company.
Current Policy
At the regional level, Jakpreneur has engaged external stakeholders - including startup companies and higher education institutions - to assist in delivering training for MSME entrepreneurs participating in the program. To date, Jakpreneur has worked with at least 120 collaborators1. However, benefits that will be received by potential collaborators are currently not clearly established in the Governor of DKI Jakarta Regulation No. 2 of 2020 on Integrated Entrepreneurship Development, which may discourage them from committing their involvement in the Jakpreneur program and assisting MSMEs beyond the delivery of one-off training.
Action
Making it lucrative for potential collaborators to participate in the Jakpreneur program can incentivize them to provide upskilling programs for and mentor their micro and small counterparts. More attention should be paid to benefits that the collaborators can receive for delivering value to MSMEs beyond one-time training, such as through mentorship or business partnership. Furthermore, this policy action should also involve the creation of collaboration agreements that are in line with the collaborating organizations’ organizational strategy.
Indicator of Success
- Dukung UMKM, Pemprov DKI Gandeng 120 Kolaborator Gabung di Jakpreneur. https://wartakota.tribunnews.com/2022/02/23/dukung-umkm-pemprov-dki-gandeng-120-kolaborator-gabung-di-jakpreneur