Can Digital Literacy Increase SMEs Performance? An Evidence from SMEs in Banyumas

Ekaningtyas Widiastuti, Retno Kurniasih, Sri Martini

Abstract


SME actors confirmed that their sales turnover had declined since the Covid-19 pandemic. SMEs are currently required to make rapid changes. As we all know, the current consumer tendency is to limit physical interaction and reduce activities outside the house. This can be an opportunity as well as a challenge for SMEs. The digitization process provides great opportunities for SMEs that are connected to the digital ecosystem. However, the digitalization opportunity has not been utilized optimally and evenly. Digital literacy is indispensable in improving business processes to achieve company performance. The purpose of this study was to examine the role of digital literacy of SME actors in improving the performance of SMEs in Banyumas Regency. The sampling technique used purposive sampling technique with 100 respondents. The results of the analysis found that digital literacy had a positive effect on the SMEs performance. The implication of this research is that SME actors can improve their skills in using digital media and use them optimally as a means of product marketing by participating in digital marketing training to improve their business performance.

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References


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