An Examination of the Impact of Using Marketplaces to Promote the Growth of Micro, Small, and Medium Enterprises (MSME) in Indonesia

Marketplaces have become a critical component in the development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. The availability of a marketplace platform has a substantial impact on MSMEs' growth. The purpose of this study is to assess the impact of marketplaces on the growth of MSMEs by taking into account the elements that influence their integration into the digital ecosystem. The quantitative methodology was utilized to collect data from MSME traders who used the marketplace to market their items. The marketplace's presence has greatly enhanced sales and had a favorable impact on their business operations. Market access is open from Sabang to Merauke thanks to the information technology network. This data is evaluated statistically to determine the association between market presence and MSME business growth. The findings of this study can help MSMEs gain a better understanding of how to use marketplaces to boost exposure, sales


INTRODUCTION
Micro, small, and medium-sized firms (MSMEs) are critical to the Indonesian economy since they contribute significantly to economic growth, job creation, and poverty alleviation [1].Along with technology advancements, the usage of markets as trade platforms has become one of the primary trends reshaping the business landscape in Indonesia.The market allows MSMEs to reach a larger market, use information technology to boost exposure, and grow more quickly.The marketplace serves not only as an online sales platform, but also as a forum for both parties to make secure payments [2].
According to a 2023 poll, Shopee, Tokopedia, Lazada, Blibi, and Bukalapak are customers' top online marketplaces, with 68.7% of consumers feeling safe completing online transactions [3].Consumers choose marketplace platforms based on their good reputation, affordable prices, large product variations, original products, good customer service, fast delivery, free shipping, easy return policy, user-friendly application navigation, many payment methods options, application excellence, loyalty program, various promotions, and a high level of security [4].

Figure 1. List of Indonesian Marketplace Users
Using the marketplace is a business strategy within the boundaries of the firm, especially given the complexity of challenges, severe competition, and the necessity to always adapt in response to global events [5].Marketplaces are being used as a sales tool by micro, small, and medium businesses as well as huge corporations [6].Because it is regarded as an efficient solution, using the marketplace can save on marketing costs, promotions, as well as time and energy [7].Produce selling prices that can compete with other market competitors.According to the seller's point of view, MSMEs account for the vast majority of sellers on the Tokopedia market.The major goal for business owners is to set a selling price that can compete with other competitors in the market [8].
The majority of sellers on the Tokopedia site are Micro, Small, and Medium Enterprises (MSMEs) [9].MSMEs provide an essential contribution to the national and local economies.Using modern online buying and selling platforms necessitates the use of human resources who can swiftly grasp the technology [10].However, not all MSMEs have seized the chances provided by this online purchasing and selling platform [11].The failure to use the marketplace as a marketing tool can have a direct impact on their competitiveness against other companies that have used it from the beginning [12].Entrepreneurial zeal, increased creative innovation, strong motivation in entrepreneurship, and successful marketing techniques are all factors that influence MSMEs' performance in the creative economy.In this environment, the performance of MSMEs based on the creative economy is heavily driven by creativity, innovation, and the balancing of entrepreneurial spirit with other elements [13].These factors are critical, particularly in the area of customer service.According to the explanation above, the marketplace offers considerable benefits and advantages as an intermediary that promotes safe and convenient online transactions for sellers and consumers [14].
The marketplace is an effective marketing strategy for sellers because it incurs no additional expenditures and opens up options to sell products to a variety of customers.The marketplace has numerous benefits, making it a potential engine of economic growth for small firms [15].From the standpoint of the consumer, markets give practical benefits such as the convenience of shopping without leaving the house, which can be done anywhere and at any time [16].With so many advantages, online buying and selling platforms have become an appealing possibility for Indonesian business owners to market their products.The marketplace is also conveniently accessible via mobile apps [17]."With high competition in business and minimal use of marketplaces in developing MSME businesses, research discussing 'The Influence of Marketplaces in Increasing the Competitiveness of the Creative Economy in Elixir MSMEs' becomes relevant [18]."

MSMEs Definition and Role in the Indonesian Economy
MSMEs (Micro, Small, and Medium Enterprises) play an essential part in the Indonesian economy.MSMEs constitute the bulk of enterprises in Indonesia, generate jobs, and have an impact on local and national economic progress.According to studies, MSMEs have a high potential for growth if they have access to a larger market [19].

Introduction to Marketplaces in the Context of MSME Business
Many MSMEs are expanding their reach by using digital markets or e-commerce.MSMEs can have access to a bigger market through these platforms, without being constrained by regional constraints.They can sell their items to consumers in different regions, extend their customer base, and raise revenue with comparatively modest costs [20].

The Impact of Market Use on MSME Growth
Previous research has looked at the influence of marketplace use on MSME growth in a variety of countries.According to the data, being present on e-commerce platforms enhances visibility, market share, and dramatically increases sales of MSME items.This also allows MSMEs to improve stock management, boost operational efficiency, and introduce product innovation [21].

MSMEs' Challenges and Obstacles in Using Marketplaces
Even though the internet marketplace has many advantages, MSMEs confront some problems.Some of these include limited access to technology, the requirement for specialized skills in e-commerce management, fierce competition with other business actors, and infrastructure and delivery issues [22].

Government Policy and MSMEs' Support for Marketplace Use
The Indonesian government has taken initiatives to help MSMEs thrive through ecommerce platforms by offering incentives, training, and infrastructure support.However, an evaluation of the policy's success is still required to guarantee that MSMEs reap the greatest benefits from this program [23].

Description of the Study
The purpose of this study is to examine the impact of marketplace use on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia.To get a full understanding, this research used a combination of quantitative and qualitative analysis [24].

Determination of Samples
Population: Indonesian MSMEs who use the marketplace as one of their sales channels.Purposive sampling will be used in this study to pick a representative sample of MSMEs from diverse sectors and areas in Indonesia [25].

Instrument for Research
Questionnaire: A questionnaire with structured questions will be developed to collect data on marketplace utilization, its influence on MSME growth, problems encountered, and MSME impressions of e-commerce platforms.In-depth interviews will be done with a chosen group of respondents to acquire a better understanding of their marketplace experiences [26].

Procedure for Conducting Research
Data collection will be performed through the distribution of questionnaires to MSME owners who have used the marketplace, as well as in-depth interviews.Data Analysis: To determine the association between marketplace use and MSME growth, quantitative data will be studied using descriptive statistical methods and regression analysis.To understand the perspectives and experiences of relevant entrepreneurs, qualitative data from interviews will be evaluated thematically [27].

Data Examination
Analytical Tools: For quantitative data analysis, use statistical software such as SPSS, while for qualitative data analysis, use manual procedures.The following analytical method will be utilized to estimate the extent to which marketplace use contributes to MSME growth aspects such as higher sales, market expansion, and operational efficiency.To analyze major trends and findings from the interviews, thematic analysis will be performed [28].

Results Interpretation
The data analysis results will be examined holistically in order to develop conclusions about the impact of marketplace use on the growth of MSMEs in Indonesia.The findings will be compared to relevant literature, and practical implications and recommendations based on the research findings will be provided [29].

Results of Descriptive Analysis
Approximately 85% of the 300 MSMEs in the research sample make use of the marketplace as a sales channel.According to the survey's findings, most participants said that using the marketplace significantly increased their access to new markets by 60%, while product sales increased by about 40% [30].

The Impact of Market Use on MSME Growth
The results of regression analysis indicate a strong positive correlation between MSME growth and marketplace utilization.Regression coefficient for the independent variable (frequency of marketplace use) is 0.72, with a significance level of p < 0.001.This suggests that MSMEs have stronger growth the more often they use the marketplace.

Marketplaces Influence Growth Factors
Use of the market has a big impact on a few MSME growth parameters.It is evident that the primary effects are a 55% increase in operational efficiency and a 62% expansion of the market.Despite this, shipping expenses and logistical issues continue to be significant barriers to utilizing e-commerce platforms to their fullest extent.

MSME Perceptions and Reactions to Market Use
According to in-depth interviews, the majority of MSMEs believe that the market enables them to access a larger consumer base and broaden the market for their products.For MSMEs to get the most out of the marketplace, further assistance in the form of technological access and training is necessary.

Implications and Conclusions
The study's findings support the notion that using marketplaces significantly contributes to the expansion of MSMEs in Indonesia.E-commerce platforms have given MSMEs more opportunity to grow since they have improved sales and market accessibility.However, to guarantee that the platform is fully utilized, logistical obstacles and the requirement for additional support must be addressed.

Recommendation
Several suggestions are made considering the results to help MSMEs thrive by utilizing markets.Initially, offering more comprehensive training on marketplace administration can assist MSMEs in making better use of the platform.Second, partnerships between public, commercial, and academic organizations help expand MSMEs' access to technology.Lastly, logistical options that can lower shipping costs for MSMEs require careful consideration.It is envisaged that by putting these suggestions into practice, MSMEs would be able to make the most of the marketplace and greatly boost their contribution to Indonesia's economic expansion.

CONCLUSION
In conclusion, this research sheds light on the profound impact of marketplace utilization on the development of micro, small, and medium-sized enterprises (MSMEs) in Indonesia.By examining the factors influencing MSMEs' adoption of marketplace platforms and evaluating the role of markets in enhancing their performance and growth, this study unveils significant insights.The findings underscore that the integration of marketplaces substantially accelerates the expansion of MSMEs in Indonesia.Enhanced market access increased operational efficiency, and heightened product exposure through marketplace platforms emerge as pivotal factors contributing to the augmented sales and profitability of MSMEs.
Furthermore, the study highlights the transformative role of information technology and digitalization in enhancing the competitiveness of MSMEs.Leveraging marketplace platforms is associated with improvements in marketing skills, inventory management, and overall business process efficiency.In a policy context, the research underscores the indispensable need for governmental and regulatory support in fostering an environment conducive to MSMEs' growth through marketplace utilization.Initiatives such as digital training programs, establishment of proper technological infrastructure, and formulation of supportive policies can amplify the positive impact of marketplace adoption.
Overall, the utilization of marketplaces brings tangible benefits to MSMEs in Indonesia by amplifying market access, refining operational efficiency, and bolstering business characteristics through digital transformation.However, sustained, and expanded benefits for the MSME sector necessitate active support from the government and other stakeholders.By embracing collaborative efforts and implementing supportive measures, policymakers and stakeholders can nurture an ecosystem where MSMEs thrive and contribute significantly to Indonesia's economic growth.