Thriving Amidst Change: Indonesian MSMEs’ Resilient Response to Urban Spatial Governance

Xi Hecan (), Indrianty Sudirman and Abdullah Sanusi
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Xi Hecan: Hasanuddin University
Indrianty Sudirman: Hasanuddin University
Abdullah Sanusi: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 381-392 from Springer

Abstract: Abstract Micro, Small, and Medium Enterprises (MSMEs) play a central role in urban livelihoods, yet their activities particularly informal food-and-beverage vending often intersect with contested public-space governance. This study examines how MSMEs in South Sulawesi, Indonesia, adapt to shifting urban spatial governance and enforcement practices. Using a qualitative descriptive–interpretive design, we conducted in-depth semi-structured interviews with 20 food-and-beverage MSME owners operating under varying degrees of regulatory pressure across Makassar City, Gowa Regency, and Maros Regency. Data were transcribed verbatim and analyzed using Framework Analysis to generate applied, policy-relevant themes. Findings show that MSME resilience is enacted through: (1) informal negotiation and relationship-building with local authorities; (2) adaptive mobility and spatial repositioning to reduce exposure to enforcement; (3) diversification of sales channels and digital practices to stabilize income amid uncertainty; (4) collective and network-based coping through peer information sharing and mutual support; and (5) psychological and identity-oriented strategies that sustain persistence despite stigma, fear of displacement, and ambiguous relocation policies. These results highlight resilience as a multidimensional process shaped by governance ambiguity, uneven enforcement, and the everyday politics of visibility in public space. Policy implications include the need for clearer relocation mechanisms, transparent enforcement procedures, and participatory arrangements that protect livelihoods while maintaining urban order.

Keywords: MSMEs; urban spatial governance; informal economy; resilience strategies; South Sulawesi; Indonesia (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_27

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DOI: 10.2991/978-94-6239-709-5_27

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