PERAN UMKM DALAM MENINGKATKAN PERTUMBUHAN EKONOMI DAN PENYERAPAN TENAGA KERJA

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are a sector that plays a strategic role in supporting national economic growth and increasing employment. MSMEs not only contribute to increasing Gross Domestic Product (GDP), but also play a role in expanding employment opportunities and improving community welfare. This study aims to analyze the role of MSMEs in driving economic growth and employment in Indonesia. The research method used is a qualitative descriptive method with a literature study approach, namely by reviewing various sources such as books, scientific journals, and official reports from government agencies related to the development of MSMEs. The results show that MSMEs make a significant contribution to the national economy because they are able to create new business opportunities, increase community income, and become a sector that is relatively resistant to various economic crises. In addition, MSMEs are also able to absorb a large number of workers due to the flexible nature of their businesses and the ease with which they can be run by the community. Therefore, the development of MSMEs needs to be continuously supported through government policies, increased access to capital, entrepreneurship training, and the use of digital technology so that MSMEs are able to compete and develop sustainably.