Optimizing the Productivity of MSMEs through Digital Literacy in Kotamobagu, North Sulawesi, Indonesia
This study was conducted with the aim of determining the ability of MSME actors to understand, use, and evaluate information obtained through digital media. This study examines in more depth the impact of digital literacy in forming cognitive and technical skills to communicate and interact effectively with consumers. This study uses a descriptive qualitative approach method by conducting in-depth interviews with 11 informants including one key informant, namely the Chairperson of the MSME Association in Kotamobagu. This study also uses FGD with parties related to the research subject to obtain valid data based on source triangulation. The results of the study show that most MSME actors have better productivity when utilizing technology in carrying out their activities. The use of technology in communicating and interacting with consumers provides more optimal results at 62.78% compared to using traditional methods in communicating their products. MSME actors who do not utilize technology in their business activities are MSME actors who are not productive and are generally elderly people who still have to work to support their families.
The role of MSMEs is very large for the growth of the Indonesian economy, with the number reaching 99% of all business units. In 2023, MSME business actors will reach around 66 million. The contribution of MSMEs reaches 61% of Indonesia’s Gross Domestic Product (GDP), equivalent to IDR 9,580 trillion. MSMEs absorb around 117 million workers (97%) of the total workforce (Tambunan, 2024).
The MSMEs category is basically based on the amount of business capital at the time of establishment. If the business capital reaches a maximum of one billion rupiah (excluding land and buildings for business premises), then it is categorized as a Micro Business class (Sudarsono, 2015). Businesses with business capital of more than one billion rupiah up to five billion rupiah are included in the Small Business class. Businesses with business capital of more than five billion rupiah up to ten billion rupiah are included in the Medium Business class. Larger than this, then it becomes a Large Business class (Sudarsono & Yusuf, 2023).
One of the main steps in optimizing MSME productivity based on digital literacy is strengthening the ability to utilize information technology (Sudarsono, 2015). MSME actors need to have a deep understanding of digital platforms such as e-commerce, social media, and business management applications that can help MSME actors run their businesses more effectively (Hasanuddin Remmang, 2021; Nabilah et al., 2021). With a good understanding of this technology, MSME actors can automate various operational aspects, such as marketing, sales, and inventory management, so that time and resources can be saved for more strategic activities (Wijoyo, 2021).
Mastery of digital literacy also allows MSMEs to utilize data optimally. Data is one of the important assets in running a modern business (Sudarsono, 2022). Through digital literacy, MSMEs can learn how to collect, analyze, and interpret data obtained from online activities, such as consumer behavior on social media or market trends in e-commerce. The use of big data can help MSMEs make better and more targeted decisions, increasing the chances of business success amidst increasingly fierce competition (Sudarsono et al., 2020).
In addition, optimizing productivity through digital literacy also means that MSMEs must be able to adapt to changes in technological trends. The digital world is always evolving, so MSMEs need to continue learning and honing new skills, such as utilizing AI (Artificial Intelligence), digital payment technology, to blockchain technology that has the potential to change business systems in the future (Esch & Black, 2021; Sudarsono, 2022). This adaptation is important so that MSMEs not only survive but also thrive in the midst of rapidly changing times (Wahyudi et al., 2024).
E-commerce platforms are one of the digital media that are very useful for MSMEs in increasing productivity (Aulia & Riva’i, 2024). Through this platform, business actors can reach wider consumers without geographical limitations, while utilizing various analytical features provided to monitor the performance of products and services presented. By using this feature, MSMEs can adjust marketing strategies more quickly and precisely (Subakti et al., 2024). In addition, marketing costs through digital platforms are relatively more affordable compared to conventional methods, which can ultimately increase business efficiency.
Support from the government and various related parties is very important in helping MSMEs improve their digital literacy. Training programs, mentoring, and facilitation of technology access need to continue to be encouraged to ensure that MSMEs have the skills needed to optimize the use of technology (Susilo et al., 2023). In addition, digital infrastructure that is evenly distributed and easily accessible throughout Indonesia must also be a priority, considering that many MSMEs are still in rural and remote areas with minimal internet access.
With digital literacy-based optimization, MSMEs can be more resilient in facing future challenges. MSMEs will be able to run their businesses more efficiently, reduce operational costs, and open up new opportunities in the global market (Putri et al., 2024; Sitanggang, 2022). Digital transformation is not just an option, but a necessity for MSMEs to continue to grow and contribute more to the national economy. Adequate digital literacy will be the key to opening new doors for MSMEs in this digital economy era (Wahyudi et al., 2024).
https://www.bpsu.edu.ph/index.php/component/jdownloads/send/902-volume2issue2-re/4426-2201-2024
