UNAIR NEWS – Micro, Small, and Medium Enterprises (MSMEs) play a vital role in the economy by generating employment, driving economic growth, and improving community income. These businesses, ranging from small to medium scale, are a backbone of national development.
According to Prof. Dr. Sri Herianingrum, SE., M.Sc., an economics expert from Universitas Airlangga’s Faculty of Economics and Business, MSMEs significantly contribute in terms of enterprise numbers and job creation. However, many still struggle to offer wages that meet minimum standards.
Realities
While MSMEs often demonstrate business resilience and operational stability, they are still far from providing adequate compensation for workers. In many cases, salaries remain well below a livable standard, despite heavy workloads. With slim profit margins, employers find it difficult to pay wages that meet even basic living needs.
Toward stronger, more equitable MSMEs
Strengthening medium and large enterprises can help generate more decent jobs. At the same time, boosting digital literacy and expanding internet access can empower MSMEs to become more competitive. Embracing technology is crucial to helping MSMEs scale up and improve the welfare of their workforce.
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Economist Highlights MSMEs’ Limitations in Providing Decent Wages
