Strengthening MSME Competitiveness Through Empowerment: Evidence from Padang City Indonesia
DOI:
https://doi.org/10.58526/jsret.v5i2.1141Keywords:
competitiveness, empowerment, MSMEs, Padang CityAbstract
MSMEs play a role in driving economic growth, but in Padang City, they have not developed due to limited capital, lack of innovation, weak bookkeeping, unprofessional management, and low financial/digital literacy. This study aims to describe the strategiesPadang City Cooperatives and MSMEs Service inempowerment of MSMEs in Padang City. This research uses a descriptive qualitative approach with a case study design, with data collection techniques through interviews, observation, and documentation.Twenty MSMEs were interviewed using semi-structured interviews. Thematic analysis was used to analyze the data to determine their experiences in receiving empowerment guidance from the Padang City government.The research results found six main themes of MSME empowerment carried out by the Padang City government, namely increasing human resource capacity, developing MSME institutions, facilitating access to financing, carrying out product innovation, expanding market networks, and creating ecosystem collaboration.This study contributes by placing MSMEs at the center of research and providing context-specific information on policy and practice. It also provides practical recommendations for program sustainability.
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References
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Ramadhan, A. A., & Nafi’ah, B. A. (2025). Smart Branding “Pesona Buaya” in Facilitating Business Identification Number (NIB) Management for MSMEs in Surabaya City. Journal of Governance and Social Policy, 6(2), 536–552. https://doi.org/https://doi.org/10.24815/gaspol.v6i2.29.
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Abisuga-Oyekunle, O. A., Patra, S. K., & Muchie, M. (2020). SMEs in Sustainable Development: Their Role in Poverty Reduction and Employment Generation in sub-Saharan Africa. African Journal of Science, Technology, Innovation and Development, 12(4), 405–419.
Afifah, N., Purnamasari, P., & Lestari, E. P. (2024). Creative Economy in the Sharia Framework: The Role of SMEs in West Sumatra. Al Urwah: Sharia Economics Journal, 2(02), 111–125. https://doi.org/DOI: https://doi.org/10.61536/alurwah.v2i02.100.
Aminullah, E., Fizzanty, T., Nawawi, N., Suryanto, J., Pranata, N., Maulana, I., Ariyani, L., Wicaksono, A., Suardi, I., Azis, N. L. L., & Budiatri, A. P. (2024). Interactive Components of Digital MSMEs Ecosystem for Inclusive Digital Economy in Indonesia. Journal of the Knowledge Economy, 15(1), 487–517. https://doi.org/10.1007/s13132-022-01086-8.
Arjang, A., Sutrisno, S., Permana, R. M., Kusumastuti, R., & Ausat, A. M. A. (2023). Strategies for Improving The Competitiveness of MSMEs Through The Utilisation of Information and Communication Technology. Al-Buhuts, 19(1), 462–478. https://doi.org/DOI: https://doi.org/10.30603/ab.v19i1.3405.
Beck, T. (2013). Bank Financing for SMEs–Lessons From the Literature. National Institute Economic Review, 225(1), R23–R38. https://doi.org/https://doi.org/10.1177/002795011322500.
Capó-Vicedo, J., Capó-Vicedo, J., Tomás-Miquel, J.-V., & Bărbulescu, O. (2026). Socially Embedded Knowledge Sharing in SME Networks: a Conceptual Model for Territorial Ecosystems. VINE Journal of Information and Knowledge Management Systems, 56(3), 752–773. https://doi.org/https://doi.org/10.1108/VJIKMS-05-2025-0188.
Carvalho, T., Simões, A. C., Teles, V., & Almeida, A. H. (2024). Empowering SMEs For The Digital Future: Unveiling Training Needs and Nurturing Ecosystem Support. European Journal of Engineering Education, 49(6), 1158–1178. https://doi.org/https://doi.org/10.1080/03043797.2024.2365685.
Creswell, J. W. (2014). Research Design : Qualitative, Quantitative, and Mixed Methods Approaches. SAGE.
Dela Cruz, N. A. O., Villanueva, A. C. B., Tolin, L., Disse, S., Lensink, R., & White, H. (2025). Effects of Interventions to Improve Access to Financial Services for Micro, Small, and Medium‐Sized Enterprises in Low‐and Middle‐Income Countries: An Evidence and Gap Map. Campbell Systematic Reviews, 21(3), e70061. https://doi.org/https://doi.org/10.1002/cl2.70061.
Dhar, S., Zaman, K. A. U., & Dhar, B. K. (2024). MSMEs and Economic Growth: Fostering an Entrepreneurial Ecosystem in Bangladesh for Sustainable Development. Business Strategy & Development, 7(3), e423. https://doi.org/https://doi.org/10.1002/bsd2.423.
DiBella, J., Forrest, N., Burch, S., Rao‐Williams, J., Ninomiya, S. M., Hermelingmeier, V., & Chisholm, K. (2023). Exploring The Potential of SMEs to Build Individual, Organizational, and Community Resilience Through Sustainability‐Oriented Business Ractices. Business Strategy and the Environment, 32(1), 721–735. https://doi.org/https://doi.org/10.1002/bse.3171.
Ermawati, L., & Utami, Z. R. (2025). Empowering Community MSMEs: Enhancing Economic Potential Through Digital Marketing and Innovative Packaging Solutions in Lampung Province. Engagement: Jurnal Pengabdian Kepada Masyarakat, 9(1), 10–26. https://doi.org/DOI: https://doi.org/10.29062/engagement.v9i1.1903.
Games, D., & Mardiah, A. N. R. (2021). Livelihood and Resiliency: An Entrepreneurship of West Sumatran SMEs Aftermath Disasters. In Post-Disaster Governance in Southeast Asia: Response, Recovery, and Resilient Societies (pp. 241–254). Springer. https://doi.org/https://doi.org/10.1007/978-981-16-7401-3_11.
Ghorbani, M., & Westermann, A. (2025). Exploring The Role of Packaging in The Formation of Brand Images: A Mixed Methods Investigation of Consumer Perspectives. Journal of Product & Brand Management, 34(2), 186–202. https://doi.org/https://doi.org/10.1108/JPBM-09-2023-4738.
Gill, S. L. (2020). Qualitative Sampling Methods. Journal of Human Lactation, 36(4), 579–581. https://doi.org/https://doi.org/10.1177/0890334420949.
Harinurdin, E., Laksmono, B. S., Kusumastuti, R., & Safitri, K. A. (2025). Community Empowerment Utilizing open Innovation as a Sustainable Village-Owned Enterprise Strategy in Indonesia: A Systematic Literature Review. Sustainability, 17(8), 3394. https://doi.org/https://doi.org/10.3390/su17083394.
Hariyono, A., & Narsa, I. M. (2024). The Value of Intellectual Capital in Improving MSMEs’ Competitiveness, Financial Performance, and Business Sustainability. Cogent Economics & Finance, 12(1), 2325834. https://doi.org/https://doi.org/10.1080/23322039.2024.2325834.
Hassan, N. A. (2024). University Business Incubators As a Tool For Accelerating Entrepreneurship: Theoretical Perspective. Review of Economics and Political Science, 9(5), 434–453. https://doi.org/https://doi.org/10.1108/REPS-10-2019-0142.
Indrayani, T. I., Fermayani, R., Egim, A. S., Chen, L., & Andra, Y. (2025). Do Human Resource Management Practices Improve Employee Performance? The Mediation Role of Job Satisfaction in Indonesian MSMEs. Jurnal Manajemen Bisnis, 16(2), 418–441. https://doi.org/DOI: https://doi.org/10.18196/mb.v16i2.26310.
Kartini, T., Silaningsih, E., Sudarijati, S., Suryani, D., & Anwar, S. (2025). Enhancing MSME Performance: The Strategic Role of Entrepreneurial Orientation, Motivation, and Organizational Commitment. Journal of the International Council for Small Business, 1–34. https://doi.org/https://doi.org/10.1080/26437015.2025.2601683.
Karunia, R. L., Yanto, E., Prasetyo, J. H., Muthmainah, E., Hiswendari, L., Setiawan, P., & Saragih, M. A. P. (2024). Digital Collaboration Models for Empowering SMEs: Enhancing Public Organization Performance. Emerging Science Journal, 8(4), 1492–1505. https://doi.org/DOI: http://dx.doi.org/10.28991/ESJ-2024-08-04-015.
Kementerian Koperasi dan UKM. (2024). Laporan Tahunan Kementerian Koperasi dan UKM 2024. Jakarta: Kementerian Koperasi dan UKM.
Kumar, A., Sinha, A. R., & Kumar, P. (2025). Developing Digital Distribution Strategy Framework for SMEs: Integrating E-Commerce, Marketing, and Logistics. Journal of Distribution Science, 23(12), 39–53. https://doi.org/http://doi.org/10.15722/jds.23.12.202512.39.
Leal, M., Leal, C., & Silva, R. (2023). The Involvement of Universities, Incubators, Municipalities, and Business Associations in Fostering Entrepreneurial Ecosystems and Promoting Local Growth. Administrative Sciences, 13(12), 245. https://doi.org/https://doi.org/10.3390/admsci13120245.
Li, C., Ahmed, N., Qalati, S. A., Khan, A., & Naz, S. (2020). Role of Business Incubators As a tool for Entrepreneurship Development: The Mediating and Moderating Role of Business Start-Up and Government Regulations. Sustainability, 12(5), 1822. https://doi.org/https://doi.org/10.3390/su12051822.
Lim, W. M. (2025). What is Qualitative Research? An Overview and Guidelines. Australasian Marketing Journal, 33(2), 199–229. https://doi.org/https://doi.org/10.1177/14413582241264619.
Lin, J. Y., Yang, Z., Li, Y., & Zhang, Y. (2022). Development Strategy and The MSMEs Finance Gap. Journal of Government and Economics, 5, 100034. https://doi.org/https://doi.org/10.1016/j.jge.2022.100034.
Luck, S., & Santos, J. A. C. (2024). The Valuation of Collateral in Bank Lending. Journal of Financial and Quantitative Analysis, 59(5), 2038–2067. https://doi.org/DOI: https://doi.org/10.1017/S0022109023000704.
Maheshkar, C., & Soni, N. (2021). Problems Faced by Indian Micro, Small and Medium Enterprises (MSMEs). SEDME (Small Enterprises Development, Management & Extension Journal), 48(2), 142–159. https://doi.org/https://doi.org/10.1177/09708464211064498.
Mehjabeen, M., & Khan, S. N. (2024). Motivating Factors Affecting Formalization of Small Informal Enterprises: Evidence From an Emerging Economy. Business Strategy & Development, 7(3), e426. https://doi.org/https://doi.org/10.1002/bsd2.426.
Naradda Gamage, S. K., Ekanayake, E. M. S., Abeyrathne, G., Prasanna, R., Jayasundara, J., & Rajapakshe, P. S. K. (2020). A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies, 8(4), 79. https://doi.org/https://doi.org/10.3390/economies8040079.
Osano, H. M. (2021). Universities in Entrepreneurial Ecosystems and MSME Revitalization. Journal of the International Council for Small Business, 2(4), 355–364. https://doi.org/https://doi.org/10.1080/26437015.2021.1942327.
Owoeye, A. B. (2025). Entrepreneurship, Growth Drivers, and Economic Development: The Roles of Small-Medium Enterprises (SMEs) in Sustainable Development in Nigeria. International Journal of Research and Innovation in Social Sciences, Xi, 6518–6531. https://doi.org/https://dx.doi.org/10.47772/IJRISS.2025.905000504.
Paramata, M. R., Suyanto, M. A., Ishak, O., Rasid, A. U., & Yakup, A. P. (2025). Enhancing MSMEs Performance in Gorontalo Through Employee Development, Recruitment, and Job Satisfaction. Jurnal Ilmiah Manajemen Kesatuan, 13(5), 699–712. https://doi.org/DOI: https://doi.org/10.37641/jimkes.v13i5.3691.
Prayitno, A. (2024). Collaboration Strategy of Government and Companies in Improving the Effectiveness of Business Management and Legal Compliance in Indonesia. Pena Justisia: Media Komunikasi Dan Kajian Hukum, 23(1), 263–281. https://doi.org/https://doi.org/10.31941/pj.v23i1.5653.
Purnomo, S., & Purwandari, S. (2025). A comprehensive Micro, Small, and Medium Enterprise Empowerment Model for Developing Sustainable Tourism Villages in Rural Communities: A Perspective. Sustainability, 17(4), 1368. https://doi.org/https://doi.org/10.3390/su17041368.
Rajamani, K., Jan, N. A., Subramani, A. K., & Raj, A. N. (2022). Access to Finance: Challenges Faced by Micro, Small, and Medium Enterprises in India. Engineering Economics, 33(1), 73–85. https://doi.org/https://doi.org/10.5755/j01.ee.33.1.27998.
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