DEVELOPMENT OF PARTNERSHIP-BASED UMKM BUSINESS MODELS IN AN EFFORTS TO REDUCE POVERTY IN KENDARI CITY

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in strengthening the community economy because they play a role in generating income, employment opportunities, and local economic activity. However, their contribution to poverty reduction still faces various obstacles, particularly limited capital, managerial capacity, technology, market access, and ongoing mentoring. This study aims to analyze the partnership model between MSMEs, the government, the private sector, and supporting institutions and to formulate a contextual partnership-based MSME business model to support poverty reduction in Kendari City. The study used a qualitative approach with a descriptive-analytical design. Data were obtained through in-depth interviews, observations, and documentation studies. The empirical units of the study included five MSMEs: Hasana Juice, Maqeza, UD Mone Mandiri, Rilscake, and Erni Sintetis. Data analysis used the Miles and Huberman interactive model through data reduction, data presentation, and drawing and verifying conclusions. The results show that partnerships have been implemented through training, business legality, raw material provision, marketing, promotion, technology utilization, and mentoring. However, the partnership pattern still tends to be simple, informal, and not yet integrated sustainably. The research produced a model that positions MSMEs as the primary actors, the government as a facilitator and regulator, the private sector as a value chain partner, and supporting institutions as providers of financing, knowledge, and innovation. Strengthening integration between these stakeholders is expected to improve MSME capacity and performance, expand markets, increase incomes, and create employment opportunities, contributing to poverty reduction.