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

International Journal of Management Studies and Social Science Research
 
144
 
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new jobs and empowering the surrounding community, home industry business owners 
You can manage independently and time-freely. 
2.
Weaknesses of the home industry 
In addition to the advantages mentioned above, home industry also has various obstacles that cause 
weaknesses for managers of a small industry including internal factors of the home industry itself as well as 
some external factors. According to Tohar (2000), some of the disadvantages of home industry are as follows: 

Generally small business managers feel no need or never do feasibility studies, market research, cash 
turnover analysis, and various researches that are needed a business activity. 

Lack of long-term plan system planning, adequate accounting system, budget needs, capital, 
organizational structure and delegation of authority. As well as other managerial tools (planning, 
implementation and business control) that are generally required by a business enterprise. 

Lack of business information, referring only to the intuition and ambition of managers, weak in 
promotion. 

Lack of instructions for the technical implementation of operational activities and quality supervision of 
work and products, and often inconsistent with the terms of the order/ order, resulting in claims or 
products being rejected. 

Too many costs that are beyond control and debt that are not useful, also not adhered to standard 
bookkeeping provisions. 

The division of labor is disproportionate, often the manager has an abundant job or employees who work 
outside the standard working hours limit. 
3.
Influencing Factors for Building a Home Industry 

Capital 
For any form of business, capital is the main factor that must be met. For the household industry the 
capital owned is usually not large enough because it comes from a family joint venture or one of the 
family members only. However, with the opening of capital loan opportunities from the government and 
banks, the home industry does not need to close itself but can actually take advantage of the opportunity 
in order to spread its business wings. Provided that the management of capital is clear and produces 

Creativity 
Home industry is part of the creative industry, meaning that this industry relies on creativity in developing 
its business. Without creativity and innovative new ideas the household industry in particular that 
produces objects or craft goods can experience a decline and even bankruptcy. This is because the 
community or market share always enjoys and looks forward to new things. 
To increase creativity, these industry players must continue to update information and see the 
opportunities that exist from fonomena that occur in the community, for example, at this time is being 
much loved by certain game figures such as Angry Bird, then the home industry can produce dolls, 
clothes, roll pillows, school equipment, and so forth with angry bird motifs and images. 

Marketing 
In addition to the production process, the household industry also requires targeted marketing 
techniques. If marketing does not run well as well as the quality of the goods produced will not provide 
any profit if not sold in the market. Therefore, marketing is one of the most important factors in the 
home industry. 
Basically the marketing of an industry-produced goods can be done in various ways, one of which is 
popular at this time is marketing through the internet or online shop. The advantages of marketing 
through the internet or online shop is that it is unlimited or not limited by space and distance. Anyone 

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