THE DEVELOPMENT MODEL OF BROWN SUGAR MICRO SMALL MEDIUM ENTERPRISE IN SUMBERRINGIN VILLAGE SANAN KULON SUB-DISTRICT BLITAR REGENCY

Blitar Regency is one of the areas in East Java that has become the place for the growth of the food and beverage industry, and has enormous potential. MSME (Micro, Small, Medium Enterprises) in Blitar Regency in 2011 was recorded at 18,644 units. The number then increased significantly in 2015 reaching 254,187 units. One of them is Sumberingin Micro, Small, Medium Enterprises located in the Sumberringin village, Sanan Kulon sub-district, Blitar Regency. These MSMEs seek to improve the economic sector of the region by processing natural resources into goods of the sale value, namely brown sugar. They can produce more than 12kg for each production. Their profits in one production with 12 units get more than IDR 250,000. They have a lot of contributions to their village in increasing the income per capita by producing traditional product to the market and develop their local potential to compete with other modern products through social media marketing and modern market places.


INTRODUCTION
or 20-25% of them can be deployed.
Therefore, since the total number of the SMEs was 168, 15% of it ( 25

RESULT AND DISCUSSIONS
The result showed that the males business units could produce 1 -5 kg.
12 MSMEs or 48 percent have the outcome of production cost more than Rp 150.000,00 in one production period.On the other hand, the second proportion with the total of MSMEs is 32 percent or 8 unit business spends the production cost in the range of Rp 100.000,00 -Rp 149.000,00 in one production period.
The other 5 units or 20 percent spend Rp 50.000,00 -Rp 99.000,00 in one production period.Based on income analysis in one production there are 12 units that get more than Rp 250.000,00 in one production, while in the income range of Rp 200.000,00 -Rp 249.000 which are 5 business units that get it in one production.There are 3 business units that earn Rp 150.000,00 -Rp 199.000,00 in one production, while in the income range of Rp 100.000,00 -Rp 149.000,00 which are 2 business units.In the lowest income range Rp 50.000,00 -Rp 99.000,00 there are 3 business units that get it in one production.

Finance
The value of Cronbach's Alpha from reliability test is -0.088 < -0.217.
It means that finance instrument (X1) in this study could be used for an effect in the strategy of brown sugar MSMEs development.However, the effect does not show a significant increase based on the results of field notes from 25 participants.They actually do not use the credit offers to expand their business.The participants tend to prioritize the consumptive business.
The most influential variable from 9 items for finance variable (X1) based on reliability test is VN4 with the value of 0,358.VN4 asked about when the business is starting and whether they loan from external sources or not.
Based on the test, it is known that the participant needs external funding to expand their business.However, the funding is not used properly.

Production
The

REFERENCES
Economic Community (MEA) and ACFTA.MSMEs are expected to be able to survive in their own country, as well as to compete in the global market.not up to date.Based on the documents of Blitar Regency in 2017 (BPS Blitar Regency, 2017), the total formal and informal small-scale industrial workers in Blitar Regency in 2013 were 28,627 people.Meanwhile, the number of workers regarding the brown sugar industry (IKM) centers was 25,763 people.Based on the 2015 Regional Statistics of Blitar Regency, it was found that the number of people working in Blitar Regency in 2013 was 593,213 people (BPS Blitar District, 2015).This means the portion of people working in small industries in Blitar in 2013 was about 4.83 percent.However, 90 percent of the total small industry workers are working in the brown sugar IKM center.MSME is not only creating jobs but also playing a role in economic growth in Indonesia.The contribution of the MSME sector to gross domestic product (GDP) increased from 57.84 percent to 60.34 percent in the last five years (2011-2015).Uptake of labor in this sector also increased from 96.99 percent to 97.22 percent in the same period.Although the indicator of contribution to GDP formation and labor absorption is increasing, the access to the MSME sector to the supply of global production is very small.The contribution of MSME in Indonesia to the global supply is only 0.8 percent.In ASEAN, the contribution of Indonesian MSME to the global production supply is only slightly higher compared to Brunei, Laos, Myanmar and Cambodia.The highest contribution of the MSME sector to the global production supply reached 2.7 percent.In fact, ASEAN contributed 9.3 percent to the global production supply in the 2009-2013 period.While the contribution of the MSME sector to Indonesia's exports in 2015 was only 15.8 percent.It is much smaller than the countries in Southeast Asia.The contribution of the Thai MSME sector to exports was 29 SMEs) was used as a sample.The sampling techniques used was the accidental one.A sampling based on the coincidence in which the researcher finds suitable samples that meet the criteria during the research.The researcher searched for the owners of the SMEs that have been operating since 2016.Thus, the questionnaires were given to them based on the criteria.The data collected in this study were classified into two: the primary data is the main data in form of filled questionnaires that were obtained from the owners of the SMEs to answer the statement of problems, and the secondary data is the additional data in form of general information about Sumberingin Village, Sanankulon Sub-district, Blitar Regency and the documentation of the researcher on the site.
dominate the operation of MSMEs for brown sugar where the proportion number of male and female is 15 and 10 respectively.The majority of entrepreneurs who run the business aged over 50 years old is nine persons.The next group is aged 45 -49 and 35 -39, each of which has four people running brown sugar business.At the age group of 40-44 and 30-34, there are three people who run these MSMEs, whereas in the age range of 25-29 there are only two people who run the MSMEs.The analysis of business duration for brown sugar MSMEs indicated that there are 15 business units has been operating since 15 years ago with the proportion of 60 percent of the total existing MSMEs.Meanwhile, there are 7 business units has been operating since the 10-14 years.There are 12 percent or 3 units of all MSMEs that run their businesses within a period of 5-9 years.MSMEs is able to produce more than 12 kg in one production period.Meanwhile, there are 8 business units that could produce 6 -11 kg in one production period.Moreover, 5

Figure 1 .
Figure 1.Marketing Development Model of Small and Micro Business Enterprise of Brown Sugar