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Empowering Sustainable Small Business in North Sumatra Through Digitalization and Fashion Textile Waste Recycling

Authors
  • Yolanda Sitorus Departement of Development Economics, Faculty of Economics and Business, Universitas Sumatera Utara
  • Saqilla Kurniawan Departement of Development Economics, Faculty of Economics and Business, Universitas Sumatera Utara
  • Amelia Dongoran Departement of Development Economics, Faculty of Economics and Business, Universitas Sumatera Utara
Issue       Vol 9 No 1 (2026): Talenta Conference Series: Local Wisdom, Social, and Arts (LWSA)
Section       Articles
Galley      
DOI: https://doi.org/10.32734/lwsa.v9i1.2755
Keywords: MSMEs Digital Transformation Textile Waste Circular Economy Sustainable Fashion
Published 2026-03-09

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Indonesia's economy, contributing over 60% to the national GDP and employing approximately 97% of the workforce. In North Sumatra, particularly in Medan and Deli Serdang, MSMEs play a vital role in supporting local economic resilience. However, challenges arise due to low digital literacy levels and increasing environmental concerns, especially regarding textile waste. This study explores empowerment strategies for MSMEs by integrating digitalization and sustainable practices such as fashion textile waste recycling. Using a qualitative descriptive approach through digital content analysis, the research reveals that combining digital platform utilization with circular economy principles creates significant opportunities for MSME development. The study concludes that a holistic strategy involving digital training,sustainability innovation, and strong stakeholder collaboration is essential for empowering MSMEs in North Sumatra, thereby contributing to Sustainable Development Goals (SDGs) 8, 12, and 13.