Optimization of Banana Chip MSMEs: A Welfare Improvement Strategy in RT 016, Baru Ulu Village

Abstract

Banana chip MSMEs in RT.016, Baru Ulu Village, West Balikpapan, struggle to compete in the market due to several key challenges: inefficient production, unattractive packaging, and limited marketing strategies. The reason for selecting this topic is rooted in the business's significant potential and its contribution to the local community's income, most of whom work as fishermen and MSME actors, thus requiring intervention to improve their welfare. The solution methods employed encompass three approaches: (1) the application of appropriate technology through the creation of a 5 kg capacity oil- draining tool to replace traditional methods, (2) the redesign of product packaging to be more attractive and informative, and (3) digital marketing training to utilize social media and e-commerce. The obtained results demonstrate the successful implementation of all solutions, marked by the completion of the oil- draining tool prototype handed over to the partner, the creation of new professional packaging designs, and a significant improvement in the partners' understanding of digital marketing, evidenced by an average score increase of 0.9 points in the post-test. The conclusion from this activity is that a comprehensive and integrative approach proves effective in directly addressing MSME problems, and is expected to enhance product value, expand market reach, and ultimately contribute to the improvement of the entrepreneurs' welfare.