Technology Entrepreneurship Strategy and Horticultural Product Diversification of MSMES in Surabaya

Abstract

This study aims to analyze the role of agribusiness diversification and technopreneurship in supporting the development of horticultural product MSMEs in the city of Surabaya in the midst of national economic dynamics. Indonesia's MSME sector faces significant stability challenges, as seen from the decrease in the number of business units by -2.24% in 2020 and -0.70% in 2022. Using a descriptive qualitative approach with a case study method, this study explores how business actors in Surabaya mitigate these risks through product innovation and digitalization. The results of the study show that the integration  of technopreneurship is the key to resilience, in line with the surge in the number of MSMEs in the digital ecosystem from 7 million in 2020 to 20.76 million in 2022. The diversification of horticultural products into value-added processed goods has proven to be able to stabilize income and support the recovery of the number of national MSMEs to reach 66 million units in 2023. With the government's target of reaching 30 million digital MSMEs by 2024, the technology-based diversification strategy in the city of Surabaya is an important model in creating an adaptive, competitive, and sustainable horticultural MSME ecosystem.