Analysis of Business Development on Organic Products at Muslim SMEs (MSMEs) in Malang, Indonesia

Objective - This study aims to determine the constraints on business development of organic products run by Muslim SMEs (MSMEs) in Malang city. Businesses concerned with organic generally adopt the principles of health, ecology, justice and protection. Organic products are very popular in today's global market. This is because organic products provide great opportunity for development. However, the requirements of organic products can be quite stringent, as is the experience of developers of organic products in Muslim SMEs (MSMEs) in Malang, Indonesia.Methodology/Technique - This research analyses the root problem using a fishbone method. To determine the main problem, an AHP (Analytical Hierarchy Process) method is used. The data is obtained using FGD (Focus Group Discussion) attended by informants with an understanding of organic products produced by: Lily Group, Organic Vigur, Representatives of AOI (Organic Alliance of Indonesia) and Representatives of Pamor (Association of Organic Society) in East Java.Finding and Novelty - The research results identifies the problems faced by Muslim SMEs including: raw material, market condition, organic certification, and financial and social capital. Furthermore, the main policy issue faced by these businesses is organic certification. The implications of these policies impact market accessibility and expansion of market reach. The novelty of this research is the identification of the effect of business development policies on Muslim SMEs producing organic products.Type of Paper - Empirical