Micro, Small, and Medium Enterprises (MSMEs) play an important role in supporting Indonesia’s economy, especially in rural areas. However, the low level of digital literacy among MSME actors has become one of the obstacles in optimizing Smartphone utilization to support business activities. This study aims to determine the effect of digital literacy on Smartphone usage in supporting MSMEs in Lombo Village, Sidenreng Rappang Regency. The research used a quantitative approach with an associative method. Data were collected through questionnaires and direct observations involving 45 MSME actors selected using purposive sampling techniques. The data were analyzed using descriptive statistics, validity and reliability tests, classical assumption tests, simple linear regression analysis, coefficient of determination tests, and partial t-tests. The results showed that digital literacy had a positive and significant effect on Smartphone usage in supporting MSMEs. The coefficient of determination value reached 85.3%, indicating that digital literacy strongly influences the utilization of Smartphones in business activities such as digital promotion, customer communication, and business transactions. The findings indicate that improving digital literacy is essential to encourage the optimization of Smartphone use and strengthen the competitiveness of MSMEs in the digital era.
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