Entrepreneurship and MSME market orientation toward creative industries: Society Era 5.0 in Makassar city

Abstract

Micro, small, and medium enterprises (MSMEs) are the most important pillar of the Indonesian economy. Based on data from the Ministry of Cooperatives and SMEs, the number of MSMEs currently stands at 64.2 million with an annual contribution to GDP of 61.07%, IDR 8,573.89 trillion. The contribution of MSMEs to the Indonesian economy includes the ability to absorb 97% of the total existing workforce and raise 60.4% of total investment. However, the MSMEs in Indonesia aren’t immune to existing challenges. The contribution of MSMEs to the economic cycle in Indonesia is quite large, reaching 90% every year. There are 19,000 MSME business units in Makassar City, dominated by the culinary sector. The regional government is committed to supporting MSMEs in the era of digitalization and global competition through Society Era 5.0. By increasing the ability of MSMEs to utilize e-commerce, it is hoped that the sector can grow and contribute significantly to the economy of Makassar City. The impact of the COVID-19 pandemic has encouraged a shift in the consumption patterns of goods and services from offline to online, with an increase in internet traffic of around 15%–20%. This momentum will accelerate digital transformation. Indonesia's digital economic potential is still wide open with the fourth largest population in the world and an internet penetration that has reached 196.7 million people.