International MSMEs in the Role of Government in Sustainability SDG 1, SDG 2, SDG 8, SDG 9, and SDG 10
Cindy Pramita*
Sudarmiatin
The integration of Micro, Small, and Medium Enterprises (MSMEs) into international markets is a crucial mechanism for achieving the Sustainable Development Goals (SDGs), particularly SDGs 1, 2, 8, 9, and 10. However, the effectiveness of this contribution is highly dependent on government policy interventions amidst digital disruption and the dominance of Gen Z entrepreneurs. This study aims to analyze the influence of government support which includes financial stimulus, digital infrastructure, regulatory diplomacy, and capacity building on the sustainability performance of international MSMEs. This study uses a quantitative approach with multiple linear regression analysis. Data were collected from 350 export-oriented MSMEs through a structured questionnaire that was tested for validity and reliability. The findings indicate that digital infrastructure and regulatory diplomacy have the most significant positive influence on innovation (SDG 9) and inequality reduction (SDG 10). Financial stimulus contributes to economic stability (SDGs 1 & 8), but its impact is moderated by the company’s digital maturity. The role of government must transform from merely a provider of subsidies to a facilitator of digital and diplomatic ecosystems to ensure that MSMEs become the main drivers of sustainable global development.
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