Strategic Model Development for Strengthening MSMEs and Enhancing Regional Economic Growth in West Kisaran District

Abstract

This study formulates a strategic model to strengthen micro, small, and medium enterprises (MSMEs) in West Kisaran District, Asahan Regency, to improve competitiveness and increase their contribution to regional economic development. A mixed-methods design was applied, combining (i) a survey of 120 MSME actors and (ii) in-depth interviews with 12 key stakeholders representing local government, financial institutions, MSME associations, and academia, followed by SWOT analysis integrated with the Analytic Hierarchy Process (AHP) for strategy prioritisation. The results indicate that MSMEs possess strong internal assets—particularly local product identity (e.g., Sepatu Bunut), hereditary craftsmanship skills, and the district’s strategic trading location—while constraints remain prominent in digital capability, product differentiation, financing access, and collective branding. After normalising internal and external factor weights, the SWOT coordinates remain positive (X = +0.493; Y = +0.341), placing MSMEs in Quadrant I (aggressive strategy), implying high growth potential if opportunity-driven strategies are executed. AHP prioritisation (based on a 20-respondent expert panel with acceptable consistency) identifies the following strategic order: cross-sector cluster development and MSME digitalisation as core strategies, supported by tourism–creative economy integration, targeted revitalisation of Sepatu Bunut branding/design, and optimisation of thematic People’s Business Credit (KUR) access. The study proposes scenario-based contribution targets for planning and evaluation (not econometric forecasts), which local stakeholders may use to set performance indicators and monitor progress over a four-year horizon.