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The Impact of E-Commerce on the Growth of MSMEs in Indonesia

In: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Author

Listed:
  • Andi Sumange Alam Abdullah

    (Hasanuddin University)

Abstract

This study seeks to investigate the influence of e-commerce on the growth of micro, small, and medium-sized enterprises (MSMEs) in Indonesia. The rapid expansion of e-commerce in recent years has significantly contributed to the increase in revenue and market reach of MSMEs, enabling them to compete in a broader marketplace. The shift in consumer behavior from traditional brick-and-mortar shopping to online shopping is an inevitable trend, largely driven by the increasing accessibility of digital platforms and technological advancements. The adoption of e-commerce has allowed MSMEs to reduce operational costs, enhance customer engagement, and improve business efficiency through digital transactions and marketing strategies. Employing a qualitative research methodology, this study aims to comprehend and describe the effects of e-commerce on the development of Indonesian MSMEs. This approach enables a deeper understanding of the challenges and opportunities faced by MSMEs in adapting to digital commerce. According to data from Indonesia’s Central Statistics Agency (BPS), instant messaging is the most prevalent channel for e-commerce activities, followed by marketplaces, social media, websites, and email. These digital platforms provide MSMEs with various opportunities to expand their customer base and optimize their sales strategies. The findings of this study are expected to contribute to a more comprehensive understanding of the impact of e-commerce on MSMEs in Indonesia, offering valuable insights for policymakers, business owners, and other stakeholders in the digital economy.

Suggested Citation

  • Andi Sumange Alam Abdullah, 2025. "The Impact of E-Commerce on the Growth of MSMEs in Indonesia," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Fitra Roman Cahaya & Phung Minh Tuan & Arifuddin Mannan & Anas Iswanto Anwar & Ria (ed.), Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), pages 3126-3130, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-758-8_260
    DOI: 10.2991/978-94-6463-758-8_260
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