The Influence Of Digitalization Skills And Entrepreneurial Spirit On The Success Of Micro And Small Enterprises (Mses): Analyzing The Role Of Government Support As A Moderating Variable

Abstract

This study aims to analyze the influence of digitalization capability, entrepreneurial spirit, and
government support on the success of small and micro enterprises in Jambi City, focusing on
the Sahabat Sehati UKM community. The main issues faced by MSEs in this community
include low digital literacy, a lack of strong entrepreneurial spirit, and suboptimal government
support in sustaining business development. This research uses a quantitative approach with
data collected through questionnaires distributed to 150 MSEs actors in the culinary, fashion,
and service sectors. Data were analyzed using Structural Equation Modeling based on Partial
Least Square with the Smart PLS 3.0 application. The results show that digitalization capability
has a negative and insignificant effect on MSEs success, while entrepreneurial spirit and
government support have a positive and significant effect. Moreover, government support
strengthens the relationship between digitalization capability and MSEs success but does not
strengthen the relationship between entrepreneurial spirit and UKM success. These findings
highlight the importance of more structured digital empowerment programs and more
sustainable government support in MSEs development.

Keywords: Digitalization capability, entrepreneurial spirit, government support, MSEs
success