ENTREPRENEURIAL TRANSFORMATION IN THE DIGITAL ERA: A LITERATURE REVIEW ON THE OPPORTUNITIES AND CHALLENGES OF MSMEs by Johana M. Ratag, Farida I.S. Wakidin, Harty U.H.L. Koagouw, Roslina H.S.D. Limpeleh, Anneke M. Kaunang, Jeane Ch. Lasut, Nixon Sondakh, Scientific Research Journal (Scirj), Volume XIII, Issue IX, September 2025 Edition

Scirj Volume XIII, Issue IX, September 2025 Edition
ISSN: 2201-2796

ENTREPRENEURIAL TRANSFORMATION IN THE DIGITAL ERA: A LITERATURE REVIEW ON THE OPPORTUNITIES AND CHALLENGES OF MSMEs

Johana M. Ratag, Farida I.S. Wakidin, Harty U.H.L. Koagouw, Roslina H.S.D. Limpeleh, Anneke M. Kaunang, Jeane Ch. Lasut, Nixon Sondakh

Abstract: Digital transformation has become a global phenomenon that influences the dynamics of entrepreneurship, including in the Micro, Small, and Medium Enterprises (MSMEs) sector. The objective of this study is to analyze the opportunities and challenges of entrepreneurial transformation in the digital era through a literature review of the latest literature for the period 2021–2025. The research method used is a literature review with literature searches in international and national databases, as well as official policy reports. The analysis was conducted using a content analysis and thematic analysis approach to group the findings into three main themes: opportunities, challenges, and strategic implications. The results of the study indicate that digitalization provides significant opportunities for MSMEs in the form of expanded market access, business model innovation, operational efficiency, and strengthening business competitiveness and resilience (INDEF, 2024; Sagala et al., 2025). However, this transformation also faces several challenges, including low digital literacy (JESS, 2022), limited infrastructure and financing (Laziva, 2023), cybersecurity issues (JIC Nusantara, 2025), and dependence on digital platforms (INDEF, 2024). This study concludes that the success of MSME transformation is determined by a combination of internal factors (digital capabilities, strategy, organizational culture), public policy support (infrastructure, regulations, financing), and ecosystem collaboration (platforms, financial institutions, academics). The practical implications of this research are the need for a phased adoption strategy, the implementation of multiple (omnichannel) channels, the utilization of data analytics, and the strengthening of digital literacy and security. Meanwhile, the government and stakeholders need to strengthen infrastructure, provide technological assistance, and expand access to financing to support MSME digitalization.

Reference this Paper: ENTREPRENEURIAL TRANSFORMATION IN THE DIGITAL ERA: A LITERATURE REVIEW ON THE OPPORTUNITIES AND CHALLENGES OF MSMEs by Johana M. Ratag, Farida I.S. Wakidin, Harty U.H.L. Koagouw, Roslina H.S.D. Limpeleh, Anneke M. Kaunang, Jeane Ch. Lasut, Nixon Sondakh published at: "Scientific Research Journal (Scirj), Volume XIII, Issue IX, September 2025 Edition, Page 1-5 ".

Search Terms: MSMEs, Digital Transformation, Entrepreneurship, Opportunities, Challenges

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