MSME DIGITALIZATION DEVELOPMENT STRATEGY IN INDONESIA TO CREATE BUSINESS PROGRESS

Abstract

The COVID-19 pandemic has had a major socioeconomic impact on the world stage. In response to this incident, the government imposed Community Activity Restrictions, which decreased people's income and purchasing power. Most MSMEs have suffered as a result of the Covid-19 pandemic. There were notable effects on MSMEs, such as lower employee attrition and workforce reductions. Different tactics are used to keep the firm going. Distilling MSMEs digitally is one method. The term "MSME digitization" describes the transition from analog to digital business management techniques. The goal of digitalizing MSMEs is to increase a business's productivity and operational effectiveness. In other words, the benefits of MSMEs extend beyond the simple use of technology to alter an organization's operational processes. More significantly, the benefits of digitizing MSMEs can be applied to online raw material purchases, cash flow management, and organization of business finances. As a result, the importance of digitizing MSMEs contributes to the process simplification of a business. Digitizing MSMEs has the advantage of increasing revenue, which influences corporate behavior. In this case, the provision of digital payment access will make transactions easier for customers to complete. Furthermore, there is an improvement in the efficiency of financial management. As a result, the MSME digitalization process will produce better results that may increase earnings.