GOVERNANCE INNOVATION ON RURAL MSMEs EMPOWERMENT

Abstract

Background - Rural Micro, small and medium enterprises (MSMEs) are an important sector and have an
important role in realizing the economic development goals of a country, including economic growth, job creation, increasing foreign exchange, empowerment, formation of gross domestic product. several major issues hinder the
growth of MSMEs in rural areas, including those that are related to low levels of human resource knowledge,
skills, and education, limited access to sources that can provide capital assistance, a lack of planning in the
production process, and unstable commodity prices. Due to the incomplete integration of upstream and
downstream processes, there is no assurance of production continuity and low quality.
Purpose - This study focuses on efforts to empower MSMEs in Banjarsari Village through an innovative
governance approach. By utilizing the potential of local resources, digital technology, and the involvement of
various actors, MSME empowerment is expected to have an economic impact and strengthen social structures and environmental sustainability.
methodology - The method used a descriptive qualitative approach, The research design used is a case study.
Case studies allow researchers to conduct an in-depth analysis of several MSMEs implementing MSME
governance innovations, namely Banjarsari Village, Ciawi District, Bogor Regency. This study used semistructured interviews and observation to collect data.
Findings - Bogor Regency is one of the food barns for West Java Province. Amid rapid urban development,
Bogor Regency also still holds great potential from the MSME sector in rural areas. Rural MSMEs in Bogor
Regency have a strategic role in the local economy, not only as income generators for the community but also as
guardians of the sustainability of local traditions and environmental preservation. Innovation is an important element for the sustainability and growth of MSMEs Innovation has been considered essential for organizations to
compete in the modern and international world and dynamic business environment Governance innovations in Rural MSME development in Indonesia revolve around creating a more inclusive and efficient policy environment
to support MSMEs. These include Digital-Based Development and Partnership has cultivated a conducive
environment for Rural MSMEs empowerment in Banjarsari Village. While public sector innovation provides a
robust framework for MSME advancement, its success hinges on addressing structural barriers and ensuring
policies are inclusive and responsive to local contexts. Recommendations for enhancing innovative governance
include: sustaining efforts in digital transformation, promoting sustainable practices through incentives for ecofriendly technologies, and encouraging data-driven marketing alongside collaborative branding within MSME clusters. Establishing a unified platform for advertising and distribution could further extend the market reach of rural MSMEs.
Originality - The originality of this research is exploring the subject or factual conditions regarding the
performance of apparatus in providing services to the community