<![CDATA[The digital era has brought significant changes to various sectors, including the business world, through technological innovations such as e-commerce. MSMEs play a crucial role in the national economy; however, the adoption of e-commerce and technological innovation among Indonesian MSMEs remains low. This study aims to analyze the impact of e-commerce and technological innovation on the growth and competitiveness of MSMEs in Solo City. The research employs a qualitative descriptive method with a phenomenological approach. Data were collected through in-depth interviews and direct observations of MSME practitioners selected through purposive sampling. Secondary data were obtained from credible literature. The analysis was conducted through data reduction, data presentation, and conclusion drawing. The findings indicate that digitalization through e-commerce helps MSMEs expand their markets, enhance operational efficiency, and strengthen competitiveness. MSMEs that utilize digital technology experience increased revenue and productivity, although they still face challenges such as limited digital infrastructure and low technological literacy. Digitalization also contributes to local economic development by extending market reach to national and international levels. However, government support is perceived as suboptimal, particularly in providing digital facilities, training, and funding. This study provides an in-depth overview of the positive impacts of digitalization but is limited in its geographical scope, focusing solely on Solo City. Broader studies are needed to understand conditions in other regions and identify more effective strategies to enhance MSME competitiveness in the digital era. Era digital telah membawa perubahan besar dalam berbagai sektor, termasuk dunia bisnis, melalui inovasi teknologi seperti e-commerce. UMKM memiliki peran signifikan dalam perekonomian nasional, namun adopsi e-commerce dan inovasi teknologi di kalangan UMKM Indonesia masih rendah. Penelitian ini bertujuan untuk menganalisis pengaruh e-commerce dan inovasi teknologi terhadap pertumbuhan dan daya saing UMKM di Kota Solo. Penelitian menggunakan metode deskriptif kualitatif dengan pendekatan fenomenologis. Data dikumpulkan melalui wawancara mendalam dan observasi langsung pada pelaku UMKM yang dipilih secara purposive sampling. Data sekunder berasal dari literatur tepercaya. Analisis dilakukan melalui reduksi, penyajian data, dan penarikan kesimpulan. Hasil penelitian menunjukkan bahwa digitalisasi, melalui e-commerce, membantu UMKM memperluas pasar, meningkatkan efisiensi operasional, dan memperkuat daya saing. UMKM yang memanfaatkan teknologi digital merasakan peningkatan pendapatan dan produktivitas, meskipun masih menghadapi tantangan seperti keterbatasan infrastruktur digital dan rendahnya literasi teknologi. Digitalisasi juga berkontribusi pada pengembangan ekonomi lokal dengan memperluas jangkauan pasar hingga ke tingkat nasional dan internasional. Namun, dukungan pemerintah dirasa belum optimal, terutama dalam penyediaan fasilitas digital, pelatihan, dan pendanaan. Penelitian ini memberikan gambaran mendalam tentang dampak positif digitalisasi, tetapi memiliki keterbatasan pada cakupan wilayah penelitian yang hanya terfokus di Kota Solo. Kajian lebih luas diperlukan untuk memahami kondisi di wilayah lain dan mengidentifikasi strategi yang lebih efektif untuk meningkatkan daya saing UMKM di era digital.]]>
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