MSME Empowerment Strategy Towards Sustainable Development: Developing a Synergistic Model Based on Internal and External Factors
Yuni Rosdiana, Elly Halimatusadiah, Lasmanah, Aura Shalihah Ekaputri, Alya Salsabila Zaid

Bandung Islamic University

Abstract

This research is motivated by the low sustainability performance of MSMEs (Micro, Small, and Medium Enterprises) fostered by Rumah BUMN, particularly in the environmental aspect, and the weak integration of Sustainable Development Goals (SDGs) principles into their daily business activities. The objective of this study is to analyze the influence of internal and external factors on the sustainability performance of MSMEs and to explore the synergy between these factors in supporting SDGs-based MSME empowerment. This study employs a quantitative approach using a survey method. The sample consists of 144 MSME actors selected through purposive sampling, with the criteria being MSMEs that have received SDGs-based mentoring at Rumah BUMN in West Java Province. The data used in this study are primary data, collected and analyzed using exploratory analysis with the aid of SMART-PLS. The results indicate that both internal and external factors have a positive and significant effect on the sustainability performance of MSMEs. Internal factors show a more dominant influence, particularly in the dimensions of product quality, business facilities, and marketing. Meanwhile, external factors such as the role of supporting institutions, socio-economic conditions, and access to information also contribute significantly. These findings underscore the importance of synergy between internal strengths and external support as a strategic approach to developing a sustainable MSME empowerment model aligned with the goals of the SDGs.

Keywords: Internal factors, external factors, sustainability performance, MSMEs

Topic: Economic Welfare in Terms of Islamic Perspective