Effectiveness of the MSME Empowerment Program in Improving MSME Competitiveness in North Bolaang Mongondow Regency

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in local economic development, yet their competitiveness depends heavily on the quality and effectiveness of government empowerment programs. This study examines the effectiveness of the MSME empowerment program implemented by the Department of Cooperatives, Industry, and Trade (Disperindagkop) of North Bolaang Mongondow Regency in improving MSME competitiveness. The study employed a qualitative descriptive case-study approach. Data were collected through in-depth interviews, field observation, and documentation from 11 purposively selected informants representing government officials, an MSME facilitator, and MSME owners in Pinogaluman, Kaidipang, and Bintauna subdistricts. Data were analyzed using the interactive model of Miles and Huberman and interpreted through Mahmudi’s program-effectiveness framework consisting of input, process, output, and outcome dimensions. The findings show that the program was partially effective. At the input level, competent implementing personnel and supporting facilities were available, but budget constraints and an inadequate number of facilitators limited program coverage. The implementation process demonstrated cross-agency coordination and regular field visits, but participant coverage, participation, follow-up assistance, and outcome-based monitoring remained limited. The program produced tangible outputs in the form of entrepreneurship training, production equipment assistance, and business licensing facilitation. However, these outputs did not consistently translate into improved competitiveness. Financial performance remained stagnant or only marginally improved, product innovation was limited, market access remained predominantly local, digital technology adoption was very low, and product certification was still incomplete. The main barriers were budget efficiency policies, limited facilitators, inadequate capital after training, uneven digital infrastructure, and varying levels of participant engagement. The study recommends integrating training with post-training financing, expanding collaborative mentoring, adopting locally adaptive digitalization strategies, developing product-cluster-based assistance, and strengthening outcome-based monitoring and evaluation.