PERANAN EKONOMI MIKRO DALAM MENINGKATKAN KESEJAHTERAAN MASYARAKAT MENENGAH KE BAWAH

Abstract

This study examines the role of microeconomics in improving the welfare of the lower-middle-class community through the development of Micro, Small, and Medium Enterprises (MSMEs). The main issue identified is the low level of welfare caused by limited employment opportunities and a lack of community capacity to manage local economic potential. Various solutions have been implemented through MSME empowerment and government policies; however, social weaknesses such as limited capital, low digital literacy, and restricted market access still persist. The emerging innovation lies in the utilization of digital technology such as e-commerce platforms and social media for product marketing and business expansion. The purpose of this study is to analyze the role of microeconomics in creating employment, increasing income, and strengthening local economic resilience. The research employs a descriptive qualitative method using a literature study approach and secondary data from various credible sources. The findings indicate that the trade, culinary, and manufacturing sectors contribute the most to microeconomic activities, with millions of operating units, while digitalization enhances MSME competitiveness. In conclusion, MSMEs serve as the backbone of Indonesia’s economy, playing a vital role in reducing unemployment, alleviating poverty, and fostering community self-reliance through continuous innovation and sustainable technology adoption.