DOI: https://doi.org/10.14710/ijfst.22.3.202-210

INCOME DIVERSIFICATION AND FINANCIAL STABILITY OF FISH PROCESSING MICRO-ENTERPRISES IN URBAN PRABUMULIH, SOUTH SUMATRA

*Muzzakie Nur Habibi  -  Department of Agricultural Socio-Economics, Faculty of Agriculture, Universitas Sriwijaya, Jl. Lintas Palembang-Prabumulih Km 32, Indralaya, Ogan Ilir, South Sumatra, Indonesia 30662, Indonesia
Yunita Yunita  -  Department of Agricultural Socio-Economics, Faculty of Agriculture, Universitas Sriwijaya, Jl. Lintas Palembang-Prabumulih Km 32, Indralaya, Ogan Ilir, South Sumatra, Indonesia 30662, Indonesia
Selly Oktarina  -  Department of Agricultural Socio-Economics, Faculty of Agriculture, Universitas Sriwijaya, Jl. Lintas Palembang-Prabumulih Km 32, Indralaya, Ogan Ilir, South Sumatra, Indonesia 30662, Indonesia

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Abstract

Small-scale fish processing groups (Poklahsar) play a crucial role in supporting urban food security and local economies. However, they frequently face financial instability due to market volatility and fluctuating access to raw materials, necessitating effective income diversification strategies. This study aims to evaluate the income diversification on the financial stability of a fish processing and marketing group (Poklahsar) in Prabumulih City. A case study approach was employed, focusing on a single, integrated collective enterprise (Poklahsar Etalase) by conducting a census of all its 10 individual members, with data collected from August 2025 to January 2026 through structured questionnaires and financial records. Income diversification was assessed using the Herfindahl-Hirschman Index (HHI), while financial stability was evaluated through net cash flow and operational margins. The results indicate that the enterprise maintains an optimally diversified revenue stream, with an HHI value of 0.5001 resulting from a balanced composition of 49.14% fish-based and 50.86% non-fish-based products. This diversified income structure serves as a critical strategic buffer, effectively mitigating market volatility and resulting in a positive monthly net income of IDR 8,720,000.00. The findings confirm that product diversification is the primary determinant of financial stability, providing the necessary liquidity and operational resilience for the enterprise needs.. It is recommended that the group focus on strengthening raw-material supply chains and managerial coordination to sustain this diversified income structure and support the scalable growth of urban microenterprises.

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Keywords: Community-based; Fish Processing and Marketing Groups (Poklahsar); Household Revenue Structure; Liquidity

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Language : EN
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