Optimizing the Selection of the Sustainable Micro, Small, and Medium-Sized Enterprises Development Center Using a Multi-Criteria Approach for Regional Development

Abstract

This research presents an integrated Analytic Hierarchy Process (AHP) and Fuzzy Goal Programming (FGP) model for optimizing the selection of Micro, Small, and Medium-Sized Enterprise (MSME) development centers in support of sustainable regional growth. The model incorporates multiple economic, environmental, and social criteria, including Initial Investment Cost, Revenue Potential, Environmental Impact, and Job Creation. Using case studies from Regional A and Regional B, the proposed model evaluates the performance of MSME centers by comparing their scores across various criteria. The results indicate that Regional B (Center 2) consistently outperforms Regional A (Center 1), achieving full membership values across key criteria such as Operating Cost, Revenue Potential, and Innovation and Technology Adoption, reflecting a strong alignment with sustainability goals. In contrast, Regional A demonstrates underperformance in areas like Resource Utilization and Social Inclusion. These findings suggest that Regional B is better suited for MSME development in terms of sustainability and long-term regional growth. The model's flexibility allows for the integration of stakeholder preferences and regional priorities, offering a robust decision-making framework for policymakers.