<![CDATA[Abstract Micro, Small, and Medium Enterprises (UMKM) constitute the backbone of Indonesia’s economy, contributing the majority of business units, a substantial share of GDP, and significant employment absorption. However, numerical dominance does not automatically translate into competitiveness or scalability. This editorial argues that advancing UMKM requires a capability-based transformation rather than superficial digital adoption. While recent progress in digital payment systems and e-commerce participation has lowered transactional barriers, structural challenges persist, including weak financial record-keeping, limited operational standardization, low brand differentiation, and uneven digital literacy. Drawing on policy and development reports, this article proposes a four-pillar framework for UMKM advancement: (1) financial and data discipline, (2) market competence and branding, (3) operational maturity through standardization, and (4) strategic use of technology for automation, analytics, and customer relationship management. The paper further outlines implications for innovation and entrepreneurship research, particularly in designing inclusive digital tools, strengthening trust mechanisms, and linking transaction data to financing access. By reframing digitalization as an enabler of entrepreneurial capability rather than an end in itself, this editorial calls for integrated efforts among policymakers, researchers, and practitioners to support UMKM in transitioning from survival-oriented operations to scalable, innovation-driven enterprises.]]>
Copyrights © 2026
