From Likes to Profit: The Impact of Digital Marketing on the Economic Growth of the MSME Sector
DOI:
https://doi.org/10.62872/3hqjhv12Keywords:
digital marketing, MSMEs, business growth, social media, e-commerce, customer acquisitionAbstract
This study explores the impact of digital marketing on the economic growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. With the increasing prevalence of digital platforms, MSMEs have begun to utilize social media, e-commerce, and online advertising to reach wider audiences, enhance brand visibility, and boost revenue. The research employs a quantitative approach using surveys distributed to MSME owners across various sectors, analyzing the relationship between digital marketing practices and business performance. The findings indicate a strong positive correlation between digital marketing intensity and business growth, particularly in terms of customer acquisition, revenue generation, and market expansion. However, the study also reveals challenges such as limited digital skills, infrastructure disparities, and algorithm changes that hinder optimal results. The research suggests that for MSMEs to fully capitalize on digital marketing, consistent effort, strategic planning, and digital literacy enhancement are essential. This study contributes to the understanding of digital marketing’s role in MSME development and offers recommendations for policy interventions and business strategies.
Downloads
References
Adawiyah, R. A., & Adhitya, F. (2021). Restructuring MSMEs Businesses Through the Use of Digital Marketing as a Reflection on the Economic Impact of the Covid-19 Pandemic. Journal of Digital Marketing and Halal Industry, 3(2), 133-148.
Bruce, E., Shurong, Z., Ying, D., Yaqi, M., Amoah, J., & Egala, S. B. (2023). The effect of digital marketing adoption on SMEs sustainable growth: Empirical evidence from Ghana. Sustainability, 15(6), 4760.
Dharta, F. Y., & Chaerudin, D. R. (2023, June). Using Digital Marketing Communications to Boost SMEs’ Local Economic Growth in Karawang Regency. In ICEMBA 2022: Proceedings of the International Conference on Economic, Management, Business and Accounting, ICEMBA 2022, 17 December 2022, Tanjungpinang, Riau Islands, Indonesia (p. 101).
Gao, J., Siddik, A. B., Khawar Abbas, S., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of E-commerce and digital marketing adoption on the financial and sustainability performance of MSMEs during the COVID-19 pandemic: An empirical study. Sustainability, 15(2), 1594.
Gontur, S., Seyi, A. O., Sati Bakshak, Y., & Dashe Awoena, F. (2023). Do Digital Marketing Impact Business Performance? Emerging views from managers and owners of micro, small and medium scales enterprises in nigeria. Journal of Business & Management, 1(3).
Habibie, S. A. M., Santoso, R., Islamudin, A., & Vizandra, E. P. (2024). The effect of digital marketing-upgrading and product virality on the sustainability of MSMEs.
Islami, N. N., Wahyuni, S., & Puji, R. P. N. (2021, May). Digital Literation of micro, small and medium enterprises (MSMEs) in Jember District. In IOP Conference Series: Earth and Environmental Science (Vol. 747, No. 1, p. 012097). IOP Publishing.
Jadhav, G. G., Gaikwad, S. V., & Bapat, D. (2023). A systematic literature review: digital marketing and its impact on SMEs. Journal of Indian Business Research, 15(1), 76-91.
Kadaba, D. M. K., Aithal, P. S., & KRS, S. (2023). Government initiatives and digital innovation for Atma Nirbhar MSMEs/SMEs: To achieve sustainable and inclusive economic growth. International Journal of Management, Technology, and Social Sciences (IJMTS), 8(1), 68-82.
Meher, B. K., Hawaldar, I. T., Mohapatra, L., Spulbar, C., Birau, R., & Rebegea, C. (2021). The impact of digital banking on the growth of Micro, Small and Medium Enterprises (MSMEs) in India: a case study. Business: Theory and Practice, 22(1), 18-28.
Munizu, M., Arsyad, M., & Munir, A. R. (2024, May). Digital Marketing as a Powerful Tool to Improve MSMEs Performance. In 8th International Conference on Accounting, Management, and Economics (ICAME 2023) (pp. 380-393). Atlantis Press.
Nofrisel, N., Setiawan, E. B., Arubusman, D. A., Octora, T. Y., & Kholdun, A. I. (2023). The role of digital marketing in boosting MSME marketing performance. International Journal of Economics and Management Research, 2(2), 21-35.
Nurhasanah, M., Ameliasari, S., Iskandar, A. I., & Andria, F. (2023). Strategy For Strengthening MSMEs Capabilities: Implementation Of Digital Marketing As A Means Of Promotion And Commercialization Of Business Products In The Kencana Village Of Bogor City. International Journal of Business, Economics, and Social Development, 4(4), 310-320.
Paulina, J., Junianto, P., Fauzan, I., Irdiana, S., & Mirlana, D. E. (2022). Understanding virtual MSME product marketing strategy: A study of management and business economics. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 5(1).
Ramdan, A. M. (2022). Challenges and opportunities for utilizing MSME digital marketing applications in tourism areas. International Journal of Business, Economics & Management, 5(3), 131-142.
Rashid, S. M. R. A., Hassan, F., Sharif, N. M., Rahman, A. A., & Mahamud, M. A. (2021). The role of digital marketing in assisting small rural entrepreneurs amidst Covid-19 movement control order (MCO): A case study in Peninsular Malaysia. Academic Journal of Interdisciplinary Studies, 10(4), 70-70.
Redjeki, F., & Affandi, A. (2021). Utilization of digital marketing for MSME players as value creation for customers during the COVID-19 pandemic. International Journal of Science and Society, 3(1), 40-55.
Rudiatin, E. (2023). The Culture Policy for MSME in Digital and Their Prospects. BASKARA: Journal of Business and Entrepreneurship, 6(1), 111-124.
Setyawati, A., Sugangga, R., Maula, F. I., & Rahma, A. (2023). Digital Marketing Business Strategy to MSME Performance in the Industrial Revolution 4.0 Era. Jurnal Entrepreneur Dan Entrepreneurship, 12(1), 19-26.
Sharabati, A. A. A., Ali, A. A. A., Allahham, M. I., Hussein, A. A., Alheet, A. F., & Mohammad, A. S. (2024). The Impact of Digital Marketing on the Performance of SMEs: An Analytical Study in Light of Modern Digital Transformations. Sustainability, 16(19), 8667.
Sudirjo, F., Nurdiani, T. W., Boari, Y., Kraugusteeliana, K., & Kurniawan, R. (2023). Digital Marketing and Sales Support For Hydroponic MSME Growth Through Mobile Based E-Commerce Design. Jurnal Ekonomi, 12(3), 1750-1756.
Sunarso, B., & Mustafa, F. (2023). Analysing the Role of Visual Content in Increasing Attraction and Conversion in MSME Digital Marketing. Journal of Contemporary Administration and Management (ADMAN), 1(3), 193-200.
Thaha, A. R., Maulina, E., Muftiadi, R. A., & Alexandri, M. B. (2021). Digital marketing and SMEs: a systematic mapping study. Library Philosophy and Practice, 2021, 1-19.
Udayana, A. A. G. B., Fatmawaty, A. S., Makbul, Y., Priowirjanto, E. S., Ani, L. S., Siswanto, E., ... & Andriani, S. (2023). Investigating the role of e-commerce application and digital marketing implementation on the financial and sustainability performance: An empirical study on Indonesian SMEs. International Journal of Data and Network Science, 8(24), 167-178.
Upadhyay, J. (2022). Digital Marketing Practices Adoption in Micro, Small and Medium Businesses for Inclusive Growth. International Research Journal on Advanced Science Hub, 4(4), 75-80.
Wahdiniwaty, R., Firmansyah, D., Suryana, A., Dede, D., & Rifa'i, A. A. (2022). Mystery in Marketing Management Products Post COVID-19 as a Model of Survival Strategy Towards the Awakening of Micro Small and Medium Enterprises (MSMEs) in the Digital Economy Era. Khazanah Sosial, 4(1), 187-210.
Wahyudi, E. J., Astuti, H. W., Wahid, M. N. A., Djoewita, D., & Yustika, S. (2024). A Review of Social Media Advertising and the Impact of Digital Marketing on MSME Growth: SLR. Kontigensi: Jurnal Ilmiah Manajemen, 12(2), 721-732.
Wijayanto, G., Jushermi, J., Nursanti, A., Novandalina, A., & Rivai, Y. (2024). The Effect of E-commerce Platforms, Digital Marketing, and User Experience on Market Reach and Competitiveness of Indonesian MSMEs. International Journal of Business, Law, and Education, 5(1), 811-823.
Yuliastuti, H., Putra, J. E., & Utomo, B. (2024). Digital Marketing, Entrepreneurial Orientation, and Business Capital on the Financial Performance of MSMEs in Indonesia. International Journal of Business, Law, and Education, 5(2), 1633-1645.
Zukari, R. P. A., & Aryanto, R. (2025). The Influence of Digital Marketing Strategy in the Development of MSMEs on Economic Growth 2018–2022 (Case Study of Digital Advertising MSMEs in Jakarta). Journal of World Science, 4(1), 125-134.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Wulandari Wulandari (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
