Peran Potensi Lokal dan Tantangan dalam Pengembangan UMKM di Kota Binjai

Abstract

This study aims to analyze the potential and challenges of developing Micro, Small, and Medium Enterprises (MSMEs) in Binjai City and to formulate appropriate strategies to enhance their competitiveness. The research employed a descriptive qualitative approach, with data collected through interviews, observations, documentation, and literature studies. The findings reveal that MSME potential in Binjai is supported by abundant local resources, unique traditional culinary products, a productive workforce, and strategic market opportunities due to its proximity to Medan City. However, MSMEs face significant challenges, including limited access to financing, low financial literacy, delayed adoption of digitalization, and weak product innovation that hinder market expansion. Although government support exists, its effectiveness remains limited. To address these issues, recommended strategies include expanding access to microcredit, improving financial and digital literacy, strengthening product innovation through business incubators, and expanding market promotion. Furthermore, multi-stakeholder collaboration among government, financial institutions, academia, and MSME communities is essential to build a healthy business ecosystem. With these strategic steps, MSMEs in Binjai hold great potential to advance and contribute significantly to regional economic development