Jurnal Inovasi Ekonomi
Vol. 10 No. 02 (2025): October

Empowering Local Economies: The Strategic Role of Small and Medium Enterprises in Driving Sustainable Growth

Adinda, Adinda (Unknown)
Akbar Budiman, Muhammad (Unknown)



Article Info

Publish Date
21 Feb 2026

Abstract

This study aims to analyze the role of Small and Medium Enterprises (SMEs) in promoting local economic growth. Using a literature review approach, this research provides a comprehensive overview of SMEs’ contributions to job creation, income generation, and the enhancement of regional economic competitiveness. The findings indicate that SMEs play a crucial role not only as providers of goods and services but also as key drivers in expanding market access and fostering employment opportunities. However, SMEs face several challenges, including limited access to capital, technological constraints, and inadequate managerial capacity. The study highlights the importance of government support through policy frameworks, financial assistance, and capacity-building programs to strengthen SME performance. Ultimately, this research emphasizes that optimizing the role of SMEs can significantly contribute to sustainable local economic development and inclusive growth.

Copyrights © 2025






Journal Info

Abbrev

JIKO

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Jurnal Inovasi Ekonomi (JIKO) has been accredited by the National Journal Accreditation (ARJUNA) Managed by the Ministry of Research, Technology, and Higher Education, Republic of Indonesia, and is currently ranked 4th (Sinta 4). Indexed at Google Scholar and Dimensions. JIKO is an open-access ...