From Waste to Value-Added: Circular Economy-Based Business Model in Utilizing Rice Straw for Straw Mushroom Cultivation in MSMEs

This study aims to examine innovation strategies that can be applied by Micro, Small, and Medium Enterprises (MSMEs) in Indonesia in order to increase their competitiveness in the global and domestic markets, in this context, innovation is not only limited to product development, but also includes innovation in processes, marketing, and business models. Innovation is considered the key to facing increasingly fierce competition challenges, especially in the midst of market dynamics that can be applied by MSMEs in Indonesia, such as the use of digital technology, collaboration with other parties, and the development of creative culture in the organization. In addition, adaptation to market changes and increasingly intelligent consumers are also important factors in creating added value for products and services offered by MSMEs. Thus, the right innovation strategy can provide a sustainable competitive advantage for MSMEs in Indonesia, while encouraging national economic growth. This study uses a qualitative approach method with case studies on several MSMEs in Indonesia that have implemented product innovation strategies to increase their competitiveness. The findings of his research show that there is an increase in sales ups and downs experienced, orders from abroad, and a decline in sales since the Covid era hit, this can be a reference for the effectiveness of marketing strategies in competition between business actors. Implementing these strategies can help MSMEs differentiate themselves from the market, increase customer value, and capture new growth opportunities. Although MSMEs have great potential, there are still many difficulties to innovate in terms of products, therefore, this research focuses on the development and implementation of product innovation strategies as an effort to increase the competitiveness of MSMEs in Indonesia.

The development of the sharia banking sector in Indonesia is growing rapidly. The presence of sharia banks has a positive impact on the growth of the real sector, especially MSMEs. This is because mudharabah and musyarakah pattern is a direct investment pattern in the real sector. The Industrial Revolution 4.0 is dominated by connectivity between humans, machines and other resources that are increasingly converging through information and communication technology. Therefore, the business sector must adapt to Industry 4.0 is no exception for MSMEs. This study aims to analyze the financing of sharia banks toward MSMEs in Indonesia, analyzing the development of MSMEs in Indonesia and analyzing MSME opportunities in Indonesia at the Industrial Revolution era 4.0. This study is a descriptive study with a qualitative approach. The results of this study show that: The financing of Islamic banks for MSMEs for both capital and consumption has increased over the years. This shows the government's attention in MSMES is huge. This is because MSMEs are able to survive during the economic crisis. The development of MSMEs in Indonesia has continued to improve. Opportunities for MSMEs in Indonesia in the Era of Industrial Revolution 4.0 include: First, MSMEs can operate effectively and efficiently, and their products are quality. Second, For entrepreneurs in Indonesia has the potential to improve its business performance. To become a new entrepreneur is very easy. No need for big capital anymore, partnership patterns can be made.

Purpose – This study aims to analyze how the implementation of the Global Reporting Initiative (GRI) and the achievement of Sustainable Development Goals (SDGs) by Micro, Small, and Medium Enterprises (MSMEs) affects their sustainability reporting, as well as to understand the factors underlying the success or challenges in applying these sustainability principles to MSMEs. Design/methodology/approach – This study uses a qualitative approach with a case study method. Data were collected through semi-structured interviews with owners or managers of MSMEs in Indonesia. A total of 12 MSMEs from various sectors on the island of Java were selected as research samples. Data analysis was conducted using a scoring method to identify and interpret the GRI and SDGs practices implemented by MSMEs Findings – The study results indicate that the level of GRI disclosure and SDGs implementation in MSMEs in Indonesia varies. Most MSMEs have an understanding of the importance of sustainability, but their implementation is still limited to basic aspects such as energy efficiency and waste management. The main challenges faced by MSMEs are limited resources, lack of understanding of reporting standards, and cost pressures. Research limitations/implications – This research has an impact on the development of theories regarding the implementation of GRI and the achievement of SDGs in the context of MSMEs. This study has limitations in the relatively small sample size and focus on MSMEs in Java, so the results may not be generalizable to all MSMEs in Indonesia. Future research can involve larger and more diverse samples Keywords: GRI, Sustainability Report, SDGs, MSMEs

Islamic banking has a huge role in accelerating the growth of Micro, Small and Medium Entrerprises(MSME)s in Indonesia. The largest Muslim population in Indonesia is one factor for the developmentof MSMEs. This paper explains how the Problems and Challenges of MSMEs in Indonesia;Development of MSMEs in Indonesia; Relationship Between Islamic Bank and MSMEs in Indonesia;The Role of Islamic Bank for Development MSMEs; and The Challanges of Islamic Bank forAccelerating the Growth of MSMEs in Indonesia. The end of this paper, the authors offer solutions toIslamic banking challenges in accelerating the growth of MSMEs such as: First, to improvemudhorobah and musyarakah financing schemes to accelerate and develop MSMEs in Indonesia;Secondly, to reduce the dependence on the use of Murabahah contract products that are consumptiveand targeted middle and upper only, Third, improve the financing scheme Qordhul Hasan contract bycooperating against Islamic social institutions, such as BAZNAS, BAZDA, LAZ, BWI, and Mosque,etc by maximizing the utilization of zakat funds, infaq, alms, waqf which has been only consumptive.Fourth, the cooperation of linkage program to BPRS and BMT so that the funds channeled can bedirected to remote areas and on target. Fifth, coaching, mentoring, and mentoring to BPRS, BMT,MSMEs business practitioners, and Islamic social institutions in order to develop funds that are storedproductively. Sixth, allocate Hajj and umroh investment funds to MSMEs business practitioners.

Micro, small and medium enterprises (MSMEs) were the pillars of the Indonesian economy when the crisis occurred in 1998. However, after the crisis, when economic conditions returned to normal, MSMEs encountered several obstacles in carrying out their activities. One of the problems faced by SMEs is a lack of capital. MSMEs do not meet the requirements to make loans to banks because they are considered unbankable. This limited capital is counterproductive because it can hamper the growth of MSMEs in Indonesia. MSMEs can overcome capital problems by utilizing investment instruments in the capital market, namely stocks and bonds. However, the use of the capital market as an alternative to MSME financing is still very minimal. From 1997 to 2011, only 9 MSMEs conducted IPOs or initial public offerings (Bapepam-LK, 2011:3). MSMEs need a third party both to issue and guarantee stocks and bonds. However, the government, which is expected to have a major role in supporting the real sector, has not played a role in encouraging MSMEs to enter the capital market. The government can provide facilities for MSMEs to issue and guarantee stocks and bonds by forming MSME holdings through the formation of clusters based on the type of industry. Investors will be interested in investing because MSME-based stocks and bonds are issued and guaranteed by the government, in this case through the Ministry of Cooperatives and Small and Medium Enterprises (SMEs). On the other hand, the government will get a multiplier effect by supporting MSME capital, given the large contribution of MSMEs to national economic growth. This study offers a model that can be used by the government in issuing and guaranteeing shares and bonds based on MSMEs with a sharia scheme

This study examines how digital innovation can help Micro, Small, and Medium Enterprises (MSMEs) in Indonesia expand their export markets. MSMEs play a crucial role in the national economy, contributing significantly to the number of businesses, employment absorption, and Gross Domestic Product (GDP). However, MSMEs in Indonesia face various challenges, including access to finance, marketing, infrastructure, technology, regulation, and skill limitations. The study aims to analyse how digital technology can help MSMEs overcome these challenges, the most effective e-commerce platforms for market expansion, and digital innovation strategies to enhance MSMEs' competitiveness in the global market. A qualitative approach was used in this study, involving in-depth interviews with 46 online entrepreneurs in Indonesia and inductive content analysis to generate key themes. Secondary data were also obtained from annual reports, government publications, and other relevant official documents. The study's results indicate that using digital technologies, such as e-commerce and cloud-based supply chain management, can improve operational efficiency, reduce costs, and increase MSMEs' competitiveness. Moreover, digital marketing strategies through social media and data analysis help MSMEs understand consumer preferences and optimize their marketing strategies. The recommendations from this study include improving digital literacy, strengthening digital infrastructure, facilitating access to finance, partnering with e-commerce platforms, enhancing human resource capacity and competence, and supporting regulations and policies that promote MSME internationalization. This study also highlights the importance of developing an innovation ecosystem and international cooperation to create a conducive environment for MSME growth. Further research is suggested to evaluate the impact of digital training programs, analyse the readiness of digital infrastructure in remote areas, document successful MSME case studies, and explore the impact of AI and machine learning technologies on MSMEs. The findings from further research are expected to provide a basis for more effective and strategic policy making in supporting the growth and development of MSMEs in Indonesia in the digital era.

The growth of digital technology and the adoption of e-commerce have provided new opportunities for MSMEs to expand their market reach and increase their competitiveness. However, despite their potential, there are still many MSMEs in Indonesia who experience difficulties in implementing e-commerce and making optimal use of digital innovation. This study aims to analyze the role of digital innovation in empowering Micro, Small and Medium Enterprises (MSMEs) in Indonesia through the implementation of e-commerce. This research will use a qualitative approach by conducting case studies of a number of MSMEs in Indonesia that have successfully implemented digital innovation in their operations. The results of this study are expected to provide a better understanding of the role of digital innovation in empowering MSMEs in Indonesia through e-commerce. In addition, this research is also expected to be able to identify the challenges and obstacles faced by MSMEs in adopting digital innovation, as well as provide policy recommendations and strategies to increase the accessibility and success of e-commerce for MSMEs in Indonesia.

Micro, Small, and Medium Enterprises (MSMEs) are one of the sectors that have an important role in supporting Indonesia's national economy. Its contribution is enormous to the Gross Domestic Product (GDP), job creation, and increased innovation, especially in the face of global economic challenges and social inequality. This research aims to examine in depth the role of MSMEs in encouraging Indonesia's economic growth and identify various challenges faced by this sector. The method used in this study is library research, by analyzing various sources of scientific literature, policy reports, and relevant empirical data related to the role of MSMEs. The results of the study show that MSMEs not only contribute to increasing national GDP, but also become the main driving force in providing jobs for the community, especially in rural and suburban areas. In addition, MSMEs are also an important means in the development of local innovation, especially in the use of simple technology that is in accordance with community conditions. However, MSMEs also face a number of serious challenges that can hinder their contribution to economic growth. These challenges include limited access to digital payment systems, low quality of human resources (HR), weak marketing networks, and limited capital and technology. Thus, to increase the role of MSMEs in national economic development, synergy is needed between the government, the private sector, and financial institutions in providing comprehensive and sustainable support. The support includes training on human resource capacity building, access to capital, digital transformation, and strengthening the business ecosystem. This research is expected to contribute to the development of policies that favor the empowerment of MSMEs in Indonesia.

The presence of industry 4.0 brings various conveniences in operational and marketing processes for companies, including micro, small and medium enterprises (MSMEs). All companies are required to be able to utilize information technology in order to win the competition. Based on 2019 data, the number of MSMEs in Indonesia is 99.99% of the total number of companies and contributes to a GDP of 61.1%. With many MSMEs in Indonesia, their existence also opens up wider job opportunities with more equitable economic benefits for the community. To win the competition, MSMEs must optimize the use of information technology. To use information technology to align with business goals, MSMEs need IT Governance. Implementation of the IT Governance Framework generally runs in large companies. Constraints for small companies are usually related to the cost and complexity of the existing IT Governance Framework. This paper aims to develop an IT Governance Framework suitable for MSMEs and can be applied easily and efficiently. The initial stage is to develop a framework based on a literature review of the existing frameworks, namely COBIT, ITIL, CMMI, TOGAF, and relevant research. The proposed framework consists of six main components: Architectural Readiness, Technology Adoption, Service Management, Continuous Improvement, Leader Engagement, and Network Capability. Subsequently, improvements were made to the proposed framework by conducting quantitative and qualitative research on MSMEs to produce a better framework. As a validation stage, the enhanced framework will then be discussed with experts and the response from the MSMEs. Thus, it is hoped that the proposed framework can help MSMEs effectively utilize information technology that supports and is in line with MSME's business values.

Digital marketing has become a key factor in business success, including for Micro, Small and Medium Enterprises (MSMEs) in Indonesia. Along with technological developments and increasingly high internet penetration, MSMEs need to adopt digital marketing strategies to increase their competitiveness and sales. This research aims to analyze effective digital marketing strategies for MSMEs in Indonesia to increase sales and expand the market. The method used in this research is a literature study and qualitative analysis of the implementation of digital marketing in several MSMEs in Indonesia. The research results show that digital marketing strategies that can increase MSME sales include the use of social media, content-based marketing, digital advertising, and optimizing e-commerce platforms. Apart from that, the importance of improving digital skills for MSME players and strengthening connections between MSMEs and consumers through digital platforms is a determining factor for success. By implementing the right digital marketing strategy, MSMEs in Indonesia can expand market reach, increase visibility, and ultimately drive significant sales growth. It is hoped that this research can provide insight for MSME players and stakeholders to further optimize digital marketing potential in facing increasingly competitive market challenges.

In recent years, the studies of Business Model Innovation (BMI) and Circular Economy (CE) has been an issues much debated in literature. Moreover, the sustainable development enhanced by the Green Economy (GE) and by smart technologies represent a huge opportunity for generating profit in newly and environmentally way. Actually, was not widely investigated, what is the impact of Sustainable Business Model (SBM) in terms of competitive advantage for the firms, especially for Small and medium-sized enterprises (SMEs) towards big companies. The research design is based on the following phases. Firstly, give a literature review of significant and emerging studies on BMI and SBM. In a second step, access to a conceptual and managerial model, in order to compare it in the scientific community and expand the debate on sustainable development also in managerial perspective. The proposed conceptual model has been tested on EVJA company, an Italian innovative start-up operating in agri-food industry. The methodology adopted was a qualitative analysis. Earlier, starting with a deep literature review in order to identify and classify the main contributions on the topic of sustainable and circular business model. Later, by in depth interviews and focus group to a firm’s key informants (namely the CEO and Co-Founder and Chief technology officer and Co-Founder of the firm) and on experts and practitioners deriving from academic and managerial community. The desk research on the case study was enriched by the recurs to primary and secondary sources. The final aim is to suggest a Triple Layered Business Model Canvas (TLBMC), in the reference framework of circular economy, to support the farms manager to figure out appropriate course of actions to promote the re-use and fighting climate changes, providing better services and products (in terms of value for money to the customers). The TLBMC tool in agri-food industries can fostering the SMEs to captures value evaluating the potentials of SBM and producing in a more economically and responsibly way. In a holistic vision, that would be involve its customers, suppliers, employees, and communities, as well as its shareholders.

The linear economic business model was deemed unsustainable, necessitating the emergence of the circular economy (CE) business model. Due to resource scarcity, increasing population, and high food waste levels, the food sector has been facing significant sustainability challenges. Small and medium-sized enterprises (SMEs), particularly those in the food sector, are making efforts to become more sustainable and to adopt new business models such as the CE, but adoption rates remain low. Industry 4.0 and its associated technological applications have the potential to enable CE implementation and boost business competitiveness. In the context of emerging economies facing significant resource scarcity constraints and limited technology availability, CE principles need to be adapted. CE could create a new job economy in emerging economies, bringing scale and a competitive advantage. This study explores the enablers of and barriers to Industry 4.0 adoption for CE implementation in fruit and vegetable SMEs in India from a resource-based perspective. The purpose is to develop an evidence-based framework to help inform theory and practice about CE implementation by SMEs in emerging economies. Fifteen semi-structured interviews were conducted with experts in food SMEs. The interview transcripts were first subjected to thematic analysis. The analysis was then complemented with sentiment and emotion analyses. Subsequently, hierarchical cluster analysis, k-means analysis, and linear projection analysis were performed. Among others, the findings suggest that Industry 4.0 plays a key role in implementing CE in SMEs in emerging economies such as India. However, there are specific enablers and barriers that need to be considered by SMEs to develop the resources and capabilities needed for CE competitive advantage.

The Indonesian government has always paid considerable attention to the existence and development of Micro, Small and Medium Enterprises (MSMEs). This is because the number of MSMEs in Indonesia is very large, and MSMEs are able to absorb a high enough workforce with small business capital that easily adapts to market needs. The current era of digitalization requires MSME players to maximize promotional and marketing activities online. Besides that, MSMEs must obtain basic permits such as IUMK, HS and PIRT permits. Sinar Jaya Jelutung Village is located in Bangka Regency, has 98 MSME units. MSMEs that have pocketed new permits are 34%. The type of MSME cultivated by the community in the Sinar Jaya Jelutung Village is processed food. MSMEs do not yet have an online market place to sell MSME products online. Therefore, there is a need for assistance for MSMEs in the Sinar Jaya Jelutung Village to create technology-based and competitive businesses. To realize this there are several problems that partners (MSMEs) have, namely: lack of knowledge regarding clean standard production processes, and procedures for registration to obtain IUMK, HS and PIRT permits. Another problem that partners have is limited knowledge in using technology for promotion and marketing, so they have not reached a wider market share. Solutions that can be offered are to help partners by increasing knowledge about production processes with clean standards by conducting direct coaching to partners, facilitating the registration of IUMK permits, Certificates of Eligible Hygene Sanitation and PIRT. In order to reach a wider market share and to have strong coordination among MSME players, training was conducted on registration and design of packaging stickers for the promotion and marketing of all MSME products in the Sinar Jaya Jelutung Village. Community service activities with targeted partners for MSME actors in the Sinar Jaya Jelutung Sub-District are running smoothly and well, so they can achieve the set targets. This community service activity is in the form of outreach and direct assistance to target partners. The knowledge and awareness of MSME actors has increased regarding the submission of product legality, at the end of the activity all MSME actors already have NIB and PIRT certificates. Awareness of having attractive and informative packaging stickers is increasing, MSME players have received packaging stickers to support product promotion.

Abstract: Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Indonesia’s national economy, contributing significantly to Gross Domestic Product (GDP) and employment absorption. However, in practice, MSMEs still face disparities in accessing the legal system and regulations that should protect and empower them. These disparities are evident in various aspects, including limited legal information, lack of legal representation, and unequal legal protection compared to large business actors, such as modern retail and multinational companies. This inequality ultimately hinders the healthy and sustainable growth of MSMEs. Therefore, the government holds a strategic role and constitutional responsibility to ensure fair and proportional legal access for all business actors, particularly MSMEs, which are structurally in a weaker position. This study aims to examine the government’s responsibility in ensuring legal justice for MSMEs in Indonesia and to analyze the normative and practical obstacles encountered in fulfilling that responsibility. A normative juridical approach is used in this research by reviewing relevant legislation, such as Law Number 20 of 2008 on MSMEs, Presidential Regulation Number 112 of 2007 on the Structuring and Development of Traditional Markets, Shopping Centers, and Modern Stores, and other implementing regulations. In addition, a limited empirical approach is employed through literature review and secondary data analysis on the implementation of government policies in supporting MSMEs. The findings indicate that the government has undertaken several affirmative measures to strengthen MSMEs' legal standing, such as simplifying licensing procedures, facilitating access to financing, and mandating business partnership quotas between MSMEs and modern retailers. However, these policies have not fully addressed the substantive legal access needs due to persistent disparities in implementation at the regional level. Key contributing factors include weak coordination between central and local governments, low legal literacy among MSME actors, and the lack of dedicated legal assistance institutions for MSMEs. Moreover, the imbalance of bargaining power between MSMEs and large business entities results in exploitative partnership agreements that MSMEs find difficult to contest without adequate legal support. The government’s responsibility to ensure fair legal access for MSMEs is a constitutional mandate inseparable from the goals of national development. Fair legal access not only entails formal equality before the law but also includes the actual ability of MSMEs to understand, utilize, and benefit from the legal system. The government must commit to strengthening its regulatory, facilitative, and protective roles in building a legal system that supports small enterprises while ensuring structural justice in every economic policy implemented.Keywords: legal access, MSMEs, legal disparity, government role, economic justice.

Micro, Small and Medium Enterprises (MSMEs) have an important and strategic role in national economic development. Besides playing a role in economic growth, it also plays a role in employment. Based on data from the Ministry of Cooperatives and Small and Medium Enterprises in 2018 the number of MSMEs in Indonesia is 64,194,057, while the absorption of MSME workers is 116,978,631. The number of MSMEs in South Tangerang City according to the Office of Cooperatives and Small and Medium Enterprises in South Tangerang City is 26,700. Covid-19 began to hit Indonesia in February 2020. Covid-19 was not just a health disaster, it also caused chaos in the economic sector, not only large industries that were exposed, it also included MSMEs in Indonesia. Efforts should be made to help MSMEs to recover and increase their business activities so that productivity and turnover will gradually increase again. To that end, the Community Service Team (PKM) of the Industrial Engineering Study Program of the University of Pamulang (UNPAM) consisting of Lecturers and Students helps MSMEs principals especially in Serpong Village, Setu District, South Tangerang City. In carrying out its business, SMEs are expected to implement seven tips for success in business and must be able to see opportunities and challenges going forward besides the need to understand the tin main problem in the business. Keywords: MSME, Covid-19, ProductivityKeywords:UMKM, covid-19, produktivity