STRATEGIES TO DEVELOP MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) BUSINESS THROUGH E-COMMERCE AND E-BUSINESS

Abstract

The development of innovation is one of the factors driving economic growth in Indonesia. This can be seen from the rapid innovation of business support through e-commerce and e-business. The utilisation of e-commerce and e-business allows MSMEs to expand their consumer base. With e-commerce and e-business, it is expected that SMEs can increase. This indirectly impacts economic growth in MSMEs in Indonesia. But in reality, there are still few MSMEs that utilise e-commerce and e-business as a means of selling their products. It is certainly still needed a strategy to develop business in MSMEs through e-commerce and e-business. The development of Indonesia's digital economy is mainly driven by e-commerce, sector-wise. In terms of physical sector development, e-commerce has a huge influence on society, especially on the commercial business sector in Indonesia. MSMEs have a lot of room and potential to participate in the progress. This article uses the literature study method by elaborating on various literature on the development of MSMEs with e-commerce and e-business. This research aims to find out the internal and external factors that can influence the adoption of e-commerce by MSMEs, find effective strategies in improving MSME businesses through e-business and e-commerce. In addition, knowing the impact and challenges of MSME digital business on economic growth in Indonesia by reviewing various literature studies in obtaining data and also the perspective of existing research. With these aspects, it is hoped that MSME players can overcome the problems that may be caused by the adoption of digital technology