The Implementation of Micro and Small Enterprise Empowerment Policies Through Digitalization in North Sumatra, Indonesia

Abstract

Technological developments in the modern era certainly have a significant impact on every activity or activity of society. This study will explain how the development of modernization of micro and small business activities by utilizing digitalization in their productivity in the North Sumatra region. Of course, it cannot be separated from the local government through the Cooperatives and SMEs Office which has implemented various programs to improve SMEs in utilizing digitalization for SME activities. However, there are still obstacles to the digitalization of SMEs, including human resources that are not ready to utilize it, capital to have digitalization, and coordination between agencies. This study aims to analyze how the process of implementing the Micro and Small Business empowerment program through digitalization in North Sumatra. By using a descriptive qualitative approach method, and applying the Van Meter and Van Horn policy implementation model as an analytical tool, which includes variables of policy size, resources, characteristics of implementing agents, attitudes of implementers, communication between organizations, and social, economic, and political conditions. Data were collected through interviews, observations, and documentation, then analyzed using interactive analysis techniques of Miles and Huberman. The findings of this study indicate that, despite government commitments through relevant agencies, many MSMEs in North Sumatra are still hampered and suboptimal due to deliberate deficiencies in human resource readiness and infrastructure support.