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All Journal Tadbir: Journal of Islamic Economics and Management
Rindi Dwi Lestari
Universitas Pangeran Diponegoro Nganjuk
Religion Humanities Economics, Econometrics & Finance Education

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Business Feasibility Analysis of MSMEs in Response to the Establishment of Industrial Factories in Nganjuk Regency Rindi Dwi Lestari
TADBIR: Journal of Islamic Economics and Management Vol. 2 No. 1 (2026): TADBIR: Journal of Islamic Economics and Management
Publisher : Prodi Ekonomi Syariah Universitas Pangeran Diponegoro Nganjuk

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Abstract

This study aims to analyze the feasibility of MSME businesses in response to the establishment of a factory in Nganjuk Regency. A qualitative approach using a case study method was employed, involving 15 MSMEs as participants, with data collected through in-depth interviews, observations, and documentation, and analyzed descriptively to illustrate business conditions, adaptation strategies, and MSME perceptions regarding changes in the business environment. The results indicate that the factory’s establishment had a dual impact: some MSMEs experienced increased sales as factory workers became new consumers, while others faced a decline due to competition with large-scale industrial products. MSMEs that successfully adapted through product innovation, price adjustment, service diversification, and utilization of social media proved to be more resilient. Government support through training, mentoring, and licensing facilitation, although limited, alongside socio-economic interactions within the MSME community, also contributed to business sustainability. The study concludes that MSME feasibility is strongly influenced by internal adaptability, innovation strategies, and external support. It is recommended to enhance government mentoring programs, encourage MSMEs to leverage digital technology, and promote collaboration between MSMEs and industries to create a sustainable economic ecosystem.
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