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Digitalization in supporting the development of Small and Medium Enterprises (SME) evidence in Indonesia

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  • Wahid Wachyu Adi WINARTO

    (Islamic State Institute of Pekalongan, Indonesia)

Abstract

The problems that arise in increasing the productivity of SMEs are limited access to formal financial institutions, production technology, human resource capacity, raw materials, and marketing. In addition, SMEs that dominate business units in Indonesia are generally managed informally, with a low level of management education, and labor skills that are not yet optimal. This affects the ability of SMEs to increase business productivity. In general, actors with lower business scales are less likely to innovate, and some of them are even unable to innovate independently. Strengthening innovation for SMEs will support the achievement of inclusive growth by reducing the productivity gap between SMEs and other larger-scale businesses. Increased innovation in SMEs can be optimized by taking advantage of the increasingly accelerated development of the digital economy and finance during the new normal. By utilizing digitalization on SMEs, it will improve performance and result in an increase in the country's economy.

Suggested Citation

  • Wahid Wachyu Adi WINARTO, 2022. "Digitalization in supporting the development of Small and Medium Enterprises (SME) evidence in Indonesia," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 9(1), pages 67-72, July.
    • Handle: RePEc:edt:jsserr:v:9:y:2022:i:1:p:67-72
    DOI: 10.5281/zenodo.6794591
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    References listed on IDEAS

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    1. Antill, Samuel, 2022. "Do the right firms survive bankruptcy?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 523-546.
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    More about this item

    Keywords

    Financial Technology; Digitalization; Small and Medium Enterprises;
    All these keywords.

    JEL classification:

    • Z0 - Other Special Topics - - General

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