STRATEGI PENINGKATAN DAYA SAING UMKM PANGAN DI PALEMBANG

Small and Medium Enterprises (SMEs) has a large potential for the economic progress in Indonesiasince it has been widespread throughout the country. Prospering the SMEs will bring a major impact for the economy of Indonesia.The research about strategy to improve the competitiveness of Food Micro Small Medium Enterprises (SMEs) in Palembang City was done by using the Strength, Weaknes, Opportunity, and Threats (SWOT) analysis and Hierarchy Analysis Process (AHP). The sample of SMEs food business in Palembang was taken by using purposive sampling technique.The result shows that the priority strategy that should be done by the SMEs are using the modern equipment in production process in order to make the food variation more effective and eficient;and utilizingthe modern management for SME's processing can cover the domestic and international economy. Therefore, good cooperation between goverment and SMEs will lead to a better function of SMEs which creates high competitiveness in SMEs.