Business Digitalization and Its Impact on MSME Revenue in the Digital Economy Era
DOI:
https://doi.org/10.51278/bier.v2i1.1922Keywords:
Digitalization, MSMEs, E-Commerce, Live StreaminAbstract
The advancement of digital technology has significantly transformed the business landscape for Micro, Small, and Medium Enterprises (MSMEs), enabling broader market access and increased revenue potential. This study explores how business digitalization—particularly through social media and e-commerce platforms—contributes to income growth among MSMEs. Grounded in the Solow Growth Model, digital transformation is seen as a catalyst for productivity and operational efficiency. Findings reveal that MSMEs benefit from reduced operational costs, more effective marketing, real-time customer interaction through live streaming, and increased online sales. The Shopee platform, for instance, has demonstrated a notable rise in product transactions via its live shopping feature. Despite these benefits, MSMEs face challenges such as low digital literacy and heightened competition, which demand continuous innovation and adaptation. The study emphasizes the need for supportive digital literacy programs and strategic integration into the digital ecosystem to ensure MSME sustainability in a rapidly evolving economy.
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