The Impact of Digitalization on MSMEs: Mostly Positive

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Adi Ahdiat 29/01/2024 16:31 WIB

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According to an INDEF survey, business digitalization generally has a positive impact on micro, small, and medium enterprises (MSMEs), ranging from increased sales to enhanced customer loyalty.

Impact of Digital Platform Use According to UMKM Respondents (December 2023)

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Impact of Digital Platform Use According to UMKM Respondents (December 2023)

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Digitalization generally has a positive impact on micro, small, and medium enterprises (MSMEs).

This is evident from the report, *The Role of Digital Platforms in the Development of MSMEs in Indonesia*, released by the INDEF research institute.

In December 2023, INDEF surveyed 254 MSMEs spread across Jabodetabek (30%), non-Jabodetabek Java (50%), and outside Java (20%).

The sample was selected using a purposive sampling technique, with criteria including MSMEs possessing both online and offline stores, actively operating for at least the past 6 months, and actively conducting online transactions.

The results showed that 100% of the MSME respondents agreed that using digital platforms could increase sales. Specifically, 64.17% agreed and 35.83% strongly agreed.

Most MSME respondents also agreed that business digitalization could increase the number of customers, simplify the marketing process, and reduce marketing costs.

Many also agreed that digital platforms could increase transaction speed, add workforce, and strengthen customer loyalty.

Meanwhile, the proportion of MSME respondents who disagreed or did not experience these positive impacts was small, as shown in the graph.

However, digitalization also presents several new challenges for MSMEs.

The majority of respondents agreed that they face the challenge of a lack of digital skills among workers.

Many also face difficulties in recruiting digitally skilled workers, high platform service fees, intense competition, and online consumer opinions that can affect business reputation.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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