Innovation, competitiveness, and business ecosystem: determinants of local economic strengthening

Abstract

This study aims to analyze the influence of innovation, competitiveness, and business ecosystem variables on strengthening the local economy. The development of small businesses as the basis of the people's economy is one of the strategic steps that need to be followed up with concrete steps to increase family productivity, improve the economy, and overcome the problems of poverty, and unemployment. Community business is one of the strengthening of the local economy. This research is field research with qualitative and quantitative approaches to provide a comprehensive explanation. The research sample was MSME business actors in Sukajadi Village, Muaraenim Regency using the purposive sampling method. Data collection techniques are used through surveys, documentation, and questionnaires using Likert scales to assess instruments. Multiple linear regression equations were utilized for the analysis of the data. The results showed that the variables of innovation, competitiveness, and business ecosystem partially or simultaneously affect the strengthening of the local economy. The independent variable affected the dependent variable by 51.2% while the remaining 48.8% was influenced by other variables not described in this study. Innovation, competitiveness, and business ecosystems play a crucial role in strengthening the local economy. These factors are interconnected and have a positive impact simultaneously and reinforce each other. By working together, innovation, competitiveness, and business ecosystems can create a strong sustainable, and inclusive local economic environment at the local level. This not only benefits local businesses but also for communities to become more resilient and able to access more opportunities. This condition supports the improvement of the welfare and quality of life of the community as a whole.