The Integrated Business Startup (IBS) Model Initiated by the Provincial Government as a Future Hybrid Approach on the Competitiveness of SMEs and Cooperatives

Abstract

Small and medium enterprises (SMEs) and startups are widely recognized to have an important and substantial role in the Indonesian economy. Therefore, an ecosystem and standardization are needed to provide better progress and facilitate the growth and development of SMEs and startups. Likewise, with cooperatives, if cooperatives still carry out a “monotonous” pattern that does not take advantage of technological developments optimally and are ready to transform in the industrial revolution era 4.0, it is impossible that the cooperative will be abandoned. The government can create an ecosystem such as a startup through the hybrid approach. Hybrid approach can be an accelerated solution for increasing the independence and competitiveness of SMEs and cooperatives. The novelty in this research is a startup system with a hybrid approach that has never existed before in Indonesia escalating the tourism sector, cooperative systems, and SMEs. Furthermore, they can offer their products and / or services so that their function can be declared as online services and government operations. This research aimed to introduce the hybrid approach in startup development initiated by the South Sumatra Province Cooperatives and SME Service which will be implemented in 13 districts and 4 cities in South Sumatra Province. The results of the research were expected that the IBS model initiated by the provincial government and developed with the hybrid approach can become a new platform for SME actors and cooperative managers in order to become more independent, have competitiveness, and preserve the ability to face the challenges of the 4.0 era. Likewise, the increase of tourist visits in South Sumatra Province will enhance the important formation of collaboration between related parties in the form of crowdsourcing in the government environment. However, to make the ecosystem able to accelerate the achievement of performance targets and provide better public services is needed.