FROM TRADITIONAL TO DIGITAL: EFFORTS TO INCREASE UMKM COMPETITIVENESS THROUGH DIGITALIZATION OF MARKETING AND FINANCE

Abstract

Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, especially Home Industries (IRT), still rely heavily on conventional approaches in business management, both in terms of marketing and financial records. This limits their ability to reach a wider market and makes it difficult to make data-driven decisions. This study aims to improve the competitiveness of MSMEs through digital marketing and financial assistance. The method used is a partnership-based community service approach with three IRT-UM partners in West Sumatra: Batik Kopi Zelma Pariangan, Dakak-dakak Zahara, and Achi Craft Gallery. Activities include digital literacy training, visual content creation, e-commerce platform utilization, and the use of digital-based bookkeeping applications such as SIAPIK. The results show that the three partners have successfully established a digital footprint, improved product promotion quality, and implemented a more structured financial recording system. Digitalization has been proven to expand market reach, improve operational efficiency, and strengthen business professionalism. Thus, digital transformation is an effective strategy in supporting the sustainability and competitiveness of MSMEs in the digital economy era.