Analysis Of The Role Of MSMEs In Improving The Economy Of Poor Families In Bendungan Village

Dany Miftahul Ula; Faizal Kurniawan

Authors

Dany Miftahul Ula University Insan Budi Utomo Author
Faizal Kurniawan University Insan Budi Utomo Author

Keywords:

MSMEs, Rural Poverty, Rational-Subsistent, Household Economy, Structural Obstacles.

Abstract

Poverty remains a critical socio-economic challenge in rural Indonesia, prompting vulnerable households to seek alternative survival strategies. This study analyzes the role and contribution of home-based Micro, Small, and Medium Enterprises (MSMEs) in improving the economy of poor families in Bendungan Village, Karangmojo District, Gunungkidul Regency, while identifying the structural obstacles hindering their development. Employing a qualitative case study design with a purposive sampling technique, data were gathered through field observations, documentation, and in-depth interviews with informal food and beverage MSME actors. The findings are analyzed through James C. Scott’s theory of Rational-Subsistent Economic Action. The results demonstrate that while the average net income is modest (ranging from IDR 500,000 to 1.5 million per month), it plays a profound qualitative role as a socio-economic safety net, directly financing basic daily necessities (sembako) and stabilizing the domestic economy. Furthermore, these micro-enterprises leverage unpaid family labor to minimize risks, stimulate local money circulation, and foster community independence. However, their potential remains limited to a passive survival mechanism due to critical bottlenecks, including restricted capital access, low managerial and digital literacy, and narrow, localized marketing networks. The study concludes that multi-stakeholder interventions, particularly in targeted micro-credit and digital marketing training, are urgently required to transition these survivalist enterprises into dynamic vehicles for upward social mobility

Author Biographies

Dany Miftahul Ula, University Insan Budi Utomo

Faculty Of Social Sciences And Humanities Education, University Insan Budi Utomo, Malang, Indonesia
Faizal Kurniawan, University Insan Budi Utomo

Faculty Of Social Sciences And Humanities Education, University Insan Budi Utomo, Malang, Indonesia

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