The Potential of Local Wisdom Based MSMEs in Improving the Economy
Abstract
This study analyzes the strategic potential of local wisdom based Micro, Small, and Medium Enterprises (MSMEs) in Palangka Raya City. This economic pillar accounts for 23.4% of the Gross Regional Domestic Product (Palangka Raya City Government, 2022). Despite having unique Dayak cultural assets, the synergy between the MSME economy and cultural assets has not been optimal due to operational challenges. This study fills this gap by mapping the potential and formulating development strategies. Using a descriptive analytical qualitative approach, data were collected through indepth interviews, observations, and documentation studies, and then analyzed thematically. The objectives to (1) map local wisdom SME products, (2) analyze business models and challenges, and (3) formulate a strategic model have been achieved. The results show great potential in Rattan Weaving and Speckled Thread Batik, but are constrained by traditional business models and the "authenticity commercialization paradox." A holistic development strategy model was formulated, focusing on capacity building, access to capital, digital transformation, and institutional strengthening.
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