Green Innovation as an MSME Development Strategy for Supporting Business Sustainability

Abstract

Micro, Small and Medium Enterprises (MSMEs) have an important role in the Indonesian economy. However, MSMEs are faced with various challenges, such as global competition. Green innovation can be a strategy for MSMEs to increase competitiveness and achieve business sustainability. The implementation of green innovation in MSMEs can provide various benefits, such as increased efficiency, reduced costs, increased competitiveness, and building a positive brand image. However, the implementation of green innovation in MSMEs also has several challenges, such as limited resources, technology, and knowledge, and the role of various stakeholders is needed, such as the government, private institutions, and the community. This research aims to understand how green innovation can support MSME business sustainability. This research uses qualitative methods with case studies on several MSMEs that have implemented green innovation. The results show that green innovation can be an effective strategy to support MSME business sustainability. The implementation of green innovation can improve the financial performance, competitiveness and contribution of MSMEs to sustainable economic development. This research also provides recommendations to support the implementation of green innovation in MSMEs, such as expanding government policies and programs, increasing collaboration between stakeholders, and strengthening research and development of environmentally friendly technology.