Feasibility Study of MSME-Based Ready-to-Eat Food Security Catering Business

Abstract

The expansion of micro, small, and medium enterprises (MSMEs) in the food service sector presents a significant opportunity to simultaneously advance entrepreneurial development and address food security challenges among Indonesia’s urban population. This study conducts a comprehensive feasibility assessment of an MSME-based ready-to-eat (RTE) food security catering business, evaluating its viability across five dimensions: market, technical, organizational, financial, and social-environmental feasibility. A descriptive-quantitative research design was employed, incorporating primary data collected from 200 prospective consumers and five MSME catering operators in the Bandung metropolitan area, supplemented by secondary data from industry reports and government statistics. Financial feasibility was evaluated using Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Benefit-Cost Ratio (BCR) analyses over a five-year projection horizon. Results indicate strong market demand, with 82.5% of surveyed consumers expressing interest in subscribing to healthy RTE catering services. Financial projections reveal a positive NPV of IDR 127,450,000, an IRR of 38.7% exceeding the cost of capital at 12%, a payback period of 2.4 years, and a BCR of 1.82, collectively affirming financial viability. The study concludes that an MSME-based RTE food security catering business is feasible and commercially promising, with important implications for MSME development policy, food security programs, and entrepreneurship support frameworks in Indonesia.