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All Journal Tadbir: Journal of Islamic Economics and Management
Binti Saidatud Daroini
Universitas Pangeran Diponegoro Nganjuk, Indonesia
Religion Humanities Economics, Econometrics & Finance Education

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Assessing the Business Feasibility of Handicraft MSMEs in the Industrial Ecosystem of Nganjuk Regency Binti Saidatud Daroini
TADBIR: Journal of Islamic Economics and Management Vol. 2 No. 2 (2026): TADBIR: Journal of Islamic Economics and Management
Publisher : Prodi Ekonomi Syariah Universitas Pangeran Diponegoro Nganjuk

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Abstract

Handicraft Micro, Small, and Medium Enterprises (MSMEs) play a significant role in driving regional economic development, particularly in Nganjuk Regency, which possesses diverse local handicraft potential. However, many handicraft MSMEs have not been able to achieve sustainable growth due to various challenges, including limited access to capital, constrained marketing capabilities, and insufficient business ecosystem support. This study aims to analyze the business feasibility of handicraft MSMEs within the industrial ecosystem of Nganjuk Regency. A qualitative descriptive approach was employed, with data collected through interviews, observations, and documentation involving handicraft MSME owners and relevant stakeholders. The business feasibility analysis focused on market potential, production and technical aspects, business management, financial performance, and the business environment. The findings indicate that handicraft MSMEs in Nganjuk Regency are generally feasible for further development, particularly in terms of market opportunities and the availability of local raw materials. Nevertheless, improvements are needed in business management practices, access to financing, and the adoption of technology and marketing networks. Furthermore, a supportive industrial ecosystem involving local government, financial institutions, and business communities plays a crucial role in enhancing the competitiveness and long-term sustainability of handicraft MSMEs. The findings are expected to provide valuable insights for policymakers and stakeholders in formulating strategies and policies to strengthen the development of handicraft MSMEs in Nganjuk Regency
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