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MSMEs and the Role of Technology in Achieving Business Sustainability Sinuhaji, Frans Gidion; Sibarani, Hendra Jonathan; Pakpahan, Victor Maruli
Journal of Artificial Intelligence and Engineering Applications (JAIEA) Vol. 4 No. 1 (2024): October 2024
Publisher : Yayasan Kita Menulis

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59934/jaiea.v4i1.724

Abstract

This study investigates the impact of Artificial Intelligence (AI) and Financial Technology (FinTech) on business sustainability among Micro, Small, and Medium Enterprises (MSMEs) in Medan City. Employing an associative research approach, the study utilizes quantitative data derived from both primary and secondary sources. The analysis methods include descriptive statistical analysis and Structural Equation Modeling (SEM). The study's population consists of 100 MSMEs in Medan City, selected through accidental sampling. The findings demonstrate that the adoption of AI and FinTech positively and significantly influences business sustainability. The integration of these technologies enhances operational efficiency, supports faster growth, and ultimately strengthens the sustainability of MSMEs. This research highlights the critical role of digital innovation in driving the development and resilience of small businesses, emphasizing the need for broader adoption of AI and FinTech solutions in the MSME sector to foster long-term growth and competitiveness.