Feasibility Study and the Development of MSME Business Incubator Mockup in Toba District

Abstract

Theoretical Framework: Toba Regency is one of the regions in North Sumatra that has considerable MSME potential. However, there are still many MSMEs that experience difficulties in developing their business due to constraints in capital, infrastructure, and market access. Therefore, it is necessary to have an MSME business incubator that can help develop the business of MSME players. However, before building an MSME business incubator, it is necessary to conduct a feasibility study. Purposes: This aims to objectively evaluate the potential success of the business incubator development project. This research aims to conduct a feasibility study and the construction of an MSME business incubator mockup in Toba Regency by looking at financial, technical, social, and environmental aspects. Method: This research uses a qualitative descriptive method with a feasibility study approach and mockup design. Data were collected through literature studies, interviews with relevant stakeholders, and direct observation of the conditions and needs of MSMEs in Toba Regency. Results: The results showed that the development of MSME business incubators in Toba Regency has great potential and good investment feasibility. In the feasibility study, it was found that MSME business incubators can provide benefits to MSME actors in terms of facilities, training, and market access. Meanwhile, in the financial analysis, it was found that the MSME business incubator development project can generate considerable profits with a payback period of around 5 years. The proposed MSME business incubator mockup design also meets the needs of MSME business development by being equipped with adequate facilities and effective marketing strategies.