The Contribution of MSMEs to Regional Economic Growth

Authors

  • Muhamad Satrio Dwi Saputra Iyo Stebis Bina Mandiri

DOI:

https://doi.org/10.51805/dynamic.v2i2.455

Keywords:

MSMEs; regional economy; economic growth; employment; development

Abstract

This study aims to analyze the contribution of Micro, Small, and Medium Enterprises (MSMEs) to regional economic growth in Indonesia. MSMEs play a strategic role in absorbing labor, increasing regional income, and strengthening local economic resilience. Using a quantitative approach with secondary data obtained from the Central Bureau of Statistics (BPS) and related institutions, this research employs multiple linear regression to examine the effect of the number of MSMEs, labor absorption, and MSME output on regional economic growth. The results show that MSMEs have a positive and significant effect on regional economic growth. These findings indicate that strengthening MSMEs through access to capital, technology, and market expansion is essential to encourage sustainable regional economic growth. Consequently, the study concludes that MSMEs are a key driver of regional economic development and should remain a priority in regional economic policies.

References

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Published

2026-07-30

Issue

Vol. 2 No. 2 (2026): Dynamic: Jurnal Inovasi dan Dinamika Ekonomi

Section

Articles

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