THE EXISTENCE OF MSMES AND THEIR ROLE IN BOOSTING BUSINESS ECONOMIC IN NORTH SUMATERA PROVINCE

Abstract

Various strategies have been implemented by local governments, especially in North Sumatra Province, in collaboration with the banking sector through CSR programs to provide support and training to business actors aimed at increasing the per capita income of the community and regional revenue. These efforts are part of a coordinated series of activities to drive regional economic growth, particularly in the Micro, Small, and Medium Enterprises (MSMEs) sector in North Sumatra, which is seen as a means to achieve regional economic self-reliance. MSMEs are not only proven to be more resilient to economic crises but are also believed to significantly stimulate the economic potential of the region. As a strategic sector of the domestic economy, MSMEs demonstrate strong crisis resilience due to their independent capital nature, not relying on external loans. This research aims to gain knowledge and understanding of the impacts resulting from the Economic Growth Enhancement in North Sumatra through the Development of Micro, Small, and Medium Enterprises. The research employs a quantitative method. The findings indicate that MSMEs serve as an appropriate platform for planned job creation by governments, private entities, and individual business operators. With the current advancement in technology, the government is actively promoting the Go Digital initiative to business actors as a shift from conventional or analog systems to digital systems. The digitalization of MSMEs involves integrating them into the digital sphere to enhance the effectiveness and efficiency of their business and operational processes.