Unveiling Export Hurdles for Food Products via Small and Medium Enterprises in Malang Raya, East Java Province, Indonesia

Abstract

The export hurdles that Small and Medium Enterprises (SMEs) in the Malang Raya region challenge are examined in this article, with a focus on the difficulties that arise when choosing whether to enter domestic or foreign markets. For SMEs in Malang Raya, licensing, government support, and marketing management barriers present serious challenges on a national and international level. Innovation, client loyalty, and efficient market management are hampered by a lack of knowledge and skills in critical domains like branding, digital marketing, distribution channels, and market analysis. For SMEs, market uncertainty and risk are exacerbated by incomplete information and an incapacity to evaluate both local and international markets. The process of internationalization is made more difficult by elements including spotting business possibilities abroad, interacting with overseas clients in a different language, and adjusting to culturally and environmental variations. Managing exports becomes more challenging in SMEs, which are usually owner-managed and lack trained managers and employees. Additional problems come from sourcing-related issues, such as the documentation of items for export, logistics, and distribution in the target nation. For SMEs aiming to export, financial limitations, the necessity for working capital, compliance with packaging standards, and handling uniformity requirements in the destination country generate substantial financial hurdles. The formation of new products for international markets is further disadvantaged by a lack of experience in market and product research. Despite these obstacles, the article points out that there may be ways to lower export restrictions through specific trade agreements, particularly those among ASEAN nations. These obstacles can be overcome more skillfully by well-established Indonesian SMEs with extensive permissions, export documentation, marketing plans, uniform packaging, and digital platform usage expertise. The article contributes towards emphasizes the complex nature of the export hurdles that SMEs in the Malang Raya region must overcome, emphasizing the necessity for all-encompassing solutions and supportive systems to enable their successful participation in global trade.