PERAN UMKM DALAM MENDORONG PERTUMBUHAN EKONOMI LOKAL DI KOTA KUPANG

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in regional economies by creating employment opportunities, increasing community income, and driving local economic growth. This study aims to analyze the role of MSMEs in promoting economic growth in Kupang City, East Nusa Tenggara. The research employs a qualitative descriptive approach, with data collected through various literature sources including scientific journals, government reports, and previous research findings. The results indicate that MSMEs in Kupang City have made significant contributions to local economic growth through enhanced productivity, job creation, and optimization of local resource potential. However, challenges faced by MSMEs such as limited access to capital, administrative constraints, lack of human resources, and accessibility issues remain obstacles that need to be addressed collaboratively by the government, business actors, and financial institutions. Therefore, sustainable policy support and capacity building for MSME actors are key to strengthening the role of MSMEs as drivers of the local economy in Kupang City.