In many poor and developing countries, the contribution that can be given by small businesses up to 30% -60% of the urban population. While the number of actors in Java this sector ranged from 37% to 43%, while outside Java more ranged between 40% -55%. If the existence of UMKM are not addressed, it will have little impact on the economy of a country.
Development of UMKM still face many fundamental problems, namely the problem of product quality, marketing and business sustainability. Policies that are needed to cut the chain break problems faced by UMKM, in particular to address some things that become obstacles in the areas of product development and marketing. The regulation of the government needed to provide UMKM development opportunities include infrastructure improvements, improved access to banking and a better economic climate to support and improve their competitiveness and to increase market share.
Formation of cooperatives is expected to help them, especially in dealing with a variety of technical issues related to the interests of a large number of issues that members join cooperatives. Furthermore cooperatives should be created and maintained roads / facilities for members in particular, especially in developing quality and competency required to produce superior products of UMKM.
Keywords: Development Strategic, UMKM.