Micro-enterprises play a vital role in Indonesia’s economy but continue to face persistent barriers in adopting information and communication technology (ICT). Understanding E-Readiness is essential for implementing effective digital interventions, especially for micro-enterprises. To address the lack of validated frameworks for assessing digital readiness at the micro-enterprise level, this study develops and empirically tests a novel E-Readiness Assessment Framework specifically designed for micro-enterprises. The proposed conceptual model consists of four dimensions: Technology, Organisation, External Environment, and Human Resources, which are derived from established e-readiness models. This study also proposed the measurement indicators that have been adapted to the characteristics of micro enterprises. Using quantitative data from 641 food and beverage (F&B) micro-enterprises in Batu City, Indonesia, exploratory factor analysis (EFA) was applied to evaluate construct validity. Despite the elimination of five indicators due to insufficient communality value, the overall model structure remained statistically valid. Subsequently, factor analysis was succeeded by the calculation of E-Readiness index using weighted aggregation and normalisation methods. The resulting E-Readiness Index for Batu City was 46.47, with 57.10% of enterprises classified as “Not Ready,” primarily due to technological and infrastructural limitations. The proposed model in this study efficiently assesses e-readiness at the micro-enterprise level and is adaptable for application in different regions or business sectors. This model also provides valuable insights for policymakers in formulating targeted digital support initiatives. Future research may consider expanding the scope of indicators and validating the model using confirmatory analysis.
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