CREATIVE ECONOMY–BASED VILLAGE DEVELOPMENT PLANNING MODEL FOR THE EMPOWERMENT OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)

Abstract

 Village development is one of the main pillars in promoting national economic equality. However, many villages in Indonesia still face challenges in enhancing community economic independence, particularly in developing Micro, Small, and Medium Enterprises (MSMEs). This study aims to formulate a village development planning model based on the creative economy as a strategy to empower MSMEs to become competitive and sustainable. The approach used is qualitative, employing literature studies, field observations, and in-depth interviews with MSME actors, village officials, and local stakeholders. The research findings indicate that applying creative economy principles in village development planning can create synergy between local potential, product innovation, and the use of digital technology. The proposed model consists of four main components: identifying creative potential based on local resources, strengthening human resource capacity through training and business incubation, cross-sector collaboration between government, private sector, and creative communities, as well as digitalization and online platform-based marketing. The implications of this study show that village development integrated with the creative economy not only increases community income but also strengthens the local economic structure sustainably. Thus, this model is expected to serve as a strategic reference for MSME empowerment policies and rural economic development in Indonesia.