Implementation of Social Innovation to Increase the Resilience of Micro Enterprises in Rural Areas

Abstract

Micro enterprises in rural Indonesia have a strategic role in strengthening the local economy, but often face various challenges such as limited market access, technology, and human resources. This study aims to examine the application of social innovation in increasing the resilience of micro enterprises through a literature study method on 19 scientific articles. The results show that social innovation contributes significantly to increasing the resilience of micro businesses, both from economic, social, operational, and psychological aspects. Forms of innovation include business digitalization, community-based institutional strengthening, and multi-stakeholder collaboration through the Penta Helix and Tetrapreneur models. The success of innovation is greatly influenced by the involvement of local actors, continuous mentoring, and support for village regulations. This study recommends the integration of social innovation into village development planning as well as strengthening the capacity of MSME actors through digital literacy and strengthening social capital as a long-term resilience strategy.