Synergy and Innovation in Micro and Small Enterprises: A Policy Network Approach to Developing the Potential of MSMES in Lhokseumawe, Indonesia

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the Indonesian economy, but face significant challenges such as limited access to capital, technology, markets, and suboptimal public policy support. This research aims to explore how synergies and innovations are sought to be enhanced in the development of MSMEs in Lhokseumawe, Indonesia, through a policy network approach, which involves collaboration between the government, private sector, and local communities. The research uses a qualitative case study approach, involving in-depth interviews and participatory observation with key stakeholders, including local government representatives, MSME owners, academics, and non- government organizations in Lhokseumawe. The research data will later be analyzed to identify interaction patterns and policy network dynamics in supporting MSME growth. The results reveal that synergies created through cross-sector collaboration have great potential to improve the competitiveness and sustainability of MSMEs. However, this study also found challenges in these efforts, namely rigid bureaucracy, suboptimal communication, and lack of sustainability aspects of the program. However, initiatives such as digital marketing training and market access support undertaken by the private sector are visible and, if properly managed within the policy network framework, can have a significant positive impact on MSMEs. In conclusion, the policy network approach can strengthen collaboration between the government, private sector, and local communities, providing an effective strategy to address structural challenges and increase the growth potential of MSMEs in Lhokseumawe. [ABSTRACT FROM AUTHOR]