The Digitalization's Role In Business Development Strategies For MSMEs

Abstract

The COVID-19 pandemic requires MSMEs to adapt towards digitalization. This has become a new challenge in the world of MSME business ventures. This research aims to answer the challenges faced by MSMEs in adopting digital technology with the right business development strategy. The type of research used in this research is descriptive qualitative research with a literature study data collection method. The results of this study indicate that behind the challenges of digitalization there are also great opportunities for MSME business actors. Supporting factors for MSMEs to enter the digital economy include adequate access, both through affordable infrastructure and customized training, regulatory support, strategic partnerships with technology and business companies, and awareness and readiness of MSMEs to adopt innovative digital products and services. Digital businesses provide opportunities for MSMEs to expand markets, improve operational efficiency, and strengthen product branding. In this case, digitalization plays a role in strengthening relationships with consumers, facilitating the recording of accounting systems, and seeking additional capital through digital cooperatives. This opportunity can be achieved by implementing business development strategies such as digital marketing strategy, content marketing strategy, utilization of financial technology, and live streaming strategy. Through these efforts, MSMEs are expected to strengthen their position in the digital economy, contribute to national economic growth, and create more stable conditions for a brighter future.