Analysis of Internal and External Risk Factors for Financial Loss among Vegetable Traders at Keputran Market, Surabaya

Abstract

Traditional markets play a vital role in ensuring food availability, particularly for fresh vegetable commodities that are consumed daily. However, vegetable trading is characterized by high business risks due to the perishable nature of the products, price fluctuations, uncertain consumer demand, operational inefficiencies, and intense market competition. These conditions require traders to effectively manage inventory, maintain product quality, and adapt to changing market dynamics in order to sustain their businesses. Keputran Utara Market in Surabaya, one of the largest wholesale vegetable markets in East Java, represents a dynamic trading environment where rapid product turnover and continuous distribution activities expose traders to various internal and external sources of financial loss. This fieldwork study aims to analyze the internal and external factors contributing to the risk of losses experienced by vegetable traders at Keputran Utara Market, Surabaya. The study was conducted through direct observation during the Field Work Practice (PKL), supported by interviews with vegetable traders and documentation of trading activities. The findings indicate that the primary internal risk factors include inaccurate inventory planning, inadequate financial record-keeping, poor product handling, and dependence on personal experience rather than systematic business management. External risk factors consist of fluctuating purchase prices, unstable supply chains, weather conditions, changing consumer demand, market competition, and delayed customer payments. These factors collectively reduce profitability and threaten business sustainability, particularly for small-scale traders. The study concludes that effective risk management through better inventory planning, improved transaction recording, and adaptive pricing strategies is essential to minimize losses and strengthen the sustainability of vegetable trading businesses in traditional markets.