MSMEs Business Scenario

When we hear the word scenario, our minds are drawn to the world of cinematography. Scenarios are imagined as script lines that contain scenes from a drama, play, or film. However, the screenplay does not only belong to the film industry. Scenarios can also be applied in micro, small, and giant scale businesses.

A business scenario is a simple attempt to identify the potential risks a business may experience. These scenarios help businesses prepare for potential future problems. If the business is able to develop a good scenario, then the business is building a guarantee to be prepared for any situation in the future.

The advantages of having a business scenario for a business, especially MSMEs, are very diverse. One of the advantages is that MSMEs are not reactive to sudden changes in the market. For example, it is not easy for MSMEs to raise prices when the cost of raw materials increases, or it is not easy to fire employees if operational costs swell.

To obtain a good business scenario, MSMEs need to show real risks. Any suspected problems that may arise, must be discussed and a plan prepared to deal with them. A good scenario is one that takes into account the entrepreneur’s risk profile, company capabilities, and market trends. Scenarios will also help entrepreneurs understand the situation more objectively, so that their business decisions will become more rational.