Influence of Social Media and E-Commerce on MSME Income

Abstract

This research aims to understand the impact of digitalization on the development of micro, small, and medium-sized enterprises (UMKM) in Indonesia. The study also discusses the challenges in UMKM digitalization processes and the role of the government in facilitating UMKM digitalization. The research employs a qualitative descriptive method with a literature review approach, using secondary data. The findings indicate that digitalization significantly influences UMKM development post-COVID-19 pandemic. However, UMKM digitalization faces challenges related to human resources and technology investment costs. The government's role in UMKM digitalization is crucial, including providing infrastructure and supporting digital literacy to accelerate the process.