The rapid growth of internet users increases digital market opportunities. However, few MSEs utilize the internet for marketing purposes. This study analyzes the factors influencing business actors' decisions to implement digital marketing in Micro and Small Enterprises (MSEs) in the food sector and its impact on business performance. This study uses data from the 2021 Micro and Small Industry (VIMK) survey by the Central Statistics Agency (BPS). The analytical methods used were the logit regression model and Prosperity Score Matching (PSM). The results show that business innovation, education level, number of employees, legal status, partnerships, participation in business associations, and government assistance have a positive influence, while the age of the entrepreneur and business experience have a negative influence on the decision to implement digital marketing. Meanwhile, the impact of digital marketing implementation has been proven to improve business performance, as indicated by the average turnover, profit, and market reach of entrepreneurs who implement digital marketing being higher than those who do not implement digital marketing. This research shows that efforts to ensure equitable implementation need to be designed inclusively by strengthening the supporting ecosystem, the benefits of digital marketing can be felt more evenly by food MSMEs.
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