Proceedings of the International Conference on Environmental Law and Mining Law, ICTA II-MIL 2023, 21st October 2023, Pangkalpinang, Bangka Belitung, Indonesia

Research Article

The Potential Application of Digitalization and Economic Growth of Micro, Small, and Medium Enterprises

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  • @INPROCEEDINGS{10.4108/eai.21-10-2023.2343526,
        author={Rahmat  Ilyas},
        title={The Potential Application of Digitalization and Economic Growth of Micro, Small, and Medium Enterprises},
        proceedings={Proceedings of the International Conference on Environmental Law and Mining Law, ICTA II-MIL 2023, 21st October 2023, Pangkalpinang, Bangka Belitung, Indonesia},
        publisher={EAI},
        proceedings_a={ICTA II-MIL},
        year={2024},
        month={3},
        keywords={digital-based msmes covid-19 pandemic income growth},
        doi={10.4108/eai.21-10-2023.2343526}
    }
    
  • Rahmat Ilyas
    Year: 2024
    The Potential Application of Digitalization and Economic Growth of Micro, Small, and Medium Enterprises
    ICTA II-MIL
    EAI
    DOI: 10.4108/eai.21-10-2023.2343526
Rahmat Ilyas1,*
  • 1: Fakultas Syariah dan Ekonomi Islam IAIN Syaikh Abdurrahman Siddik Bangka Belitung
*Contact email: mtd_82@yahoo.com

Abstract

The development of digital-based micro, small, and medium enterprises (MSMEs) has become one of the alternatives to rescue the MSME sector during the Covid-19 pandemic. Despite government efforts through the Ministry of Cooperatives and SMEs to promote digital transformation, the Covid-19 pandemic has given rise to a digital entrepreneurship ecosystem. The rapid advancement of technology has significantly influenced the evolution of payment systems in business transactions, especially in maintaining business relationships. Technological progress in payment systems has shifted the role of cash currency into more efficient and economical non-cash forms of payment. The income growth of MSMEs that have adopted digitalization has been quite impressive. Data analysis reveals that MSMEs implementing digitalization have experienced income growth, with 41.6% achieving a 10-25% increase, 28.5% achieving a 26-50% increase, and 23.1% achieving growth of over 50%, while only 6.7% have not experienced income growth.