<![CDATA[This study aims to analyze the application of digital technology to improve the competitiveness of handicraft SMEs in Junrejo Village, Batu City. This study focuses on the application of digital technology, supporting and inhibiting factors in the digitalization process, and its impact on increasing business competitiveness. This study uses a descriptive qualitative approach. Data were obtained through in-depth interviews, observation, and documentation of three handicraft SMEs. Data analysis was carried out through data reduction, data presentation, and conclusion drawing using triangulation techniques to ensure data validity. The results show that the application of digital technology such as the use of social media (Instagram and TikTok), marketplaces, and digital payment systems has made a positive contribution to expanding market reach, increasing operational efficiency, encouraging product innovation, and increasing customer trust and loyalty. However, the use of digital technology still faces obstacles in the form of limited digital literacy and technical skills of business actors. Therefore, capacity building efforts are needed through training and mentoring so that the use of digital technology can be carried out optimally and sustainably to support the increase in competitiveness of SMEs.]]>
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