Effectiveness of home industry activities in building the economy of the community in indonesia

International Journal of Management Studies and Social Science Research
 
143
 
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applications are applications that are made to support business activities to facilitate the production process, 
reduce operational costs, and so on. 
The development and competition of the business world in the current era of globalization is increasingly high, 
competition between large companies and not least the home industry which is a small business unit that is able to
act as an alternative activity in providing credit distribution, productive business activities of goods and services, as
well as in terms of labor absorption, in addition to as an alternative provider of new employment. 
Home industry is part of the economic system of cities and villages that has not received economic assistance 
from the government. as a provider of new jobs and reduce the number of unemployed and poverty. Workers 
with various different educational backgrounds make business people must have good managerial in managing 
and processing production activities. Because the amount of labor absorption from large corporate units with 
small businesses is higher, so the existence of industrial homes needs to be well taken into account and considered
by the government. From the absorption of labor with good and quality selection will cause many new 
entrepreneurs who also affect entrepreneurship behavior. 
Entrepreneurial behavior that needs to be developed has external factors that trigger it such as economic 
conditions, financial conditions, low educational background, lack of educational facilities and infrastructure and 
others that need careful consideration in creating and analyzing good and quality entrepreneurial behavior. 
Entrepreneurial behavior can be described from intention, response, motivation within oneself, hard work, and 
the desire to dare to try. High intentions are needed for new entrepreneurs who will provide stimulus responses to 
create and create interesting and innovative ideas, those responses need to have a strong drive from within 
themselves to be developed into good works and help create new businesses that want to be developed. The ideas 
that are poured must be in accordance with the prevailing norms in society, and must have good control as well. 
Good behavior in entrepreneurship affects the development of the business he manages, because the success of 
the business owner in good business behavior will also affect the success of his business development. 
In the business world price competition in search of profit does not escape the spotlight. Small businesses are 
more priced lower than hrga in supermarkets but there are also traders who sell their wares higher than 
supermarkets judging by the small number of competitors. Usually the fewer competitors and rarely other 
merchants who sell the same goods the higher the price they will set, but the more rivals who sell the same goods 
the lower the price and the higher the level of competition there is. A strategic location for retail traders usually 
determines the price and amount of competition. To attract consumers, it is not uncommon for businesses to give 
discounts, with profits expected to be high from year to year. But the price level is also determined by the type of 
market. The market of perfect competition prices is determined by the forces of supply and demand in the 
market. Therefore to compete with superior products in major malls in attracting consumer interest. Businesses 
can hone their creativity and explore more innovative ways so that buyers can be interested such as promotions, 
advertising on the internet, updating the appearance of products and so on. 
Promotion is an effort to introduce goods or products created by manufacturers to provide information to 
consumers so that consumers know how the form of the product, quality and other advantages compared to other 
products. Promotion by placing ads on the internet that is currently popular is quite powerful to attract 
consumers. Because consumers in the era of globalization as it is today prioritize practicality that has good quality. 
With the help of the internet merchants can install products offered by the internet so that consumers around the 
world can see them then they can order to merchants who place ads on the web, after the agreement occurs 
payment transactions are done easily using ATMs. Selling products over the internet in addition to good and more
time-saving also causes many crimes from irresponsible people such as fraud, ATM card hijacking, hackers and so 
on. 
B. Advantages and Disadvantages of Home Industry in Indonesia 
1.
Home industry excellence 
According to Harimurti (2012), home industries are able to survive and anticipate economic sluggishness 
caused by inflation and various other causative factors. Advantages of home industry in addition to opening 

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