The Role of Micro, Small, and Medium Enterprises (MSMEs) in Enhancing Employment Absorption in North Kolaka Regency

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play an important role in creating employment opportunities and supporting local economic activity, particularly in regions where employment opportunities outside the MSME sector remain limited. However, some MSMEs in North Kolaka Regency have not operated optimally, particularly due to limited knowledge of product marketing through social media. This study aimed to examine the role of Micro, Small, and Medium Enterprises (MSMEs) in increasing employment absorption in North Kolaka Regency. The study employed a descriptive qualitative research design, with data collected through direct observation, interviews, and documentation. The findings showed that MSMEs in North Kolaka Regency had contributed to employment creation by providing work opportunities for business owners and workers. Although most MSMEs had contributed to employment absorption, a small proportion of businesses had not operated effectively due to limited knowledge and skills in marketing products through social media. The study also found that MSMEs provided various products at relatively affordable prices, supporting their ability to attract consumers and sustain business activities. In terms of employment absorption, MSMEs were able to employ between two and eleven workers per business. These findings indicate that MSMEs have an important role in expanding local employment opportunities in North Kolaka Regency. Strengthening digital marketing knowledge and skills among MSME owners is therefore important for improving business performance and sustaining their contribution to local employment.