Transformation of Financial Management in Coffee SMEs: Enhancing Competitiveness for Sustainable Global Expansion

Abstract

Micro, Small, and Medium Enterprises (MSMEs) contribute significantly to Indonesia’s economy, particularly in the coffee industry, which has strong potential for global market expansion. However, challenges such as poor financial management, limited access to capital, and inefficient practices hinder growth. This study focuses on Databajo Coffee, a small enterprise in Labuan Bajo, East Nusa Tenggara, which produces high-quality coffee while supporting local farmers. Using a case study approach, the study analyzes Databajo Coffee’s financial practices and implements a transformation strategy through mentorship, training, adoption of digital financial tools, and financial planning. The results highlight that modern financial management practices improve operational efficiency, financial transparency, and access to financing, enhancing competitiveness and scalability for sustainable global expansion. This model can also serve as a reference for other Indonesian MSMEs.