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

Summary/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.

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