Innovation for Scaling Up Micro and Small Enterprises (MSEs)

Chaikal Nuryakin, Izyan Pijar Bungabangsa Satyagraha and Ratu Silfa Addiba Nursahla
Additional contact information
Ratu Silfa Addiba Nursahla: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)

No 202479, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: Micro, small, and medium enterprises (MSMEs) hold significant economic potential, for a potential contribution of over 55% to GDP, and employ more than 90% of the workforce (WTO, 2016). Recognizing their role in economic growth, poverty reduction, export, and job creation, the Indonesian government has prioritized MSMEs in its National Development Plan. However, a disproportionate number of MSMEs remain micro and small, hindering broader economic benefits. Innovation is proposed as a critical driver for the growth and scaling up of Micro and Small Enterprises (MSEs). This paper explores the relationship between innovation and business growth, identifies significant challenges and drivers of innovation, and draws on international best practices. We delve into several vital obstacles, such as financial constraints, inadequate copyright protection, and limited access to skilled talent that impede MSEs’ innovation and R&D capabilities. Also, we reviewed some strategies to overcome these challenges, including fostering research collaborations, implementing innovation programs, supportive government policies, and providing intellectual property rights (IPR) to MSEs.

Keywords: MSMEs; —; innovation; —; scale-up (search for similar items in EconPapers)
JEL-codes: F35 H81 O19 (search for similar items in EconPapers)
Date: 2024-79, Revised 2024
New Economics Papers: this item is included in nep-cse, nep-ent, nep-sbm and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://lpem.org/repec/lpe/papers/WP202479.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpaper:202479

Access Statistics for this paper

More papers in LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Arianto Patunru (patunru@lpem-feui.org).