The Owner Factor: An Innovation Element of Business Model Canvas by SMEs Rattan Industry in Cirebon Indonesia

Abstract

Indonesia is the largest rattan producing country in the world. It is estimated that 80%
of rattan raw material worldwide is produced by Indonesia, the rest is produced by other
countries such as the Philippines, Vietnam and other Asian countries. In 2003-2006 the
rattan industry in Indonesia experienced ups and downs with an average of 0.38% per
annum and a decrease of an average of - 3.63% per year. Most of the rattan industry
players are from West Java Province, to be exact from Cirebon. Small Medium
Enterprises (SMEs) is one of the actor of this trading industry. Although some SMEs are
experiencing collapsed due to intense competition in the globalization era. Nevertheless,
there are still several SMEs that can survive to this day. So in this connection, the
question arises of business model innovations such as what is done by rattan SMEs in
Cirebon Regency in facing business competition in the globalization era? This paper
using qualitative method to describe the innovation components applied by SMEs. The
result shows that rattan industry SMEs in Cirebon Regency based on BMC approach they
applied all the components and one component plus that is owner predisposing factor
which is the basic behavior of the owner that will influence the application of the entire
component of business model.