Abstract— Empowering SMEs in the midst of globalization
and high competition has forced MSMEs to face global challenges,
such as increasing innovation, developing human resources and
technology, and expanding the marketing area. Social networks
provide a medium for processing new innovations for SMEs such
as relationships with customers, work partners and also suppliers.
Business process management can assist business actors in
carrying out their business activities in the face of today's
challenges and global competition. This study reveals that every
business process can be supported by the implementation of IT by
a company. This study uses a grounded theory approach.
Grounded theory studies tend to follow a structured approach.
This research uses case studies of hydroponic SMEs in Indonesia,
which produce the types of social media & social media functions
that are often used by Indonesians. The main strength of this
research is the functions of social media needed by SME actors.
From the results of the study it was found that SMEs need social
media functionality in 4 functions, namely: the interaction
function, the marketing function, the reputation function, and the
information function. SMEs in Indonesia need applications that
contain these 4 functions to be able to market, sell, and interact
with other people.