Community Empowerment through MSME Programs as a Poverty Alleviation Strategy

Abstract

Poverty is a complex, multifaceted socio-economic issue that remains a major obstacle to development in Indonesia. One approach considered effective in addressing this issue is empowering communities through the development of Micro, Small, and Medium Enterprises (UMKM). This article aims to examine the role of UMKM programs as a strategic step in addressing poverty by examining the relationship between community productivity, income, savings, and investment. This research uses a descriptive qualitative method, relying on secondary data from the Central Bureau of Statistics, documents from national and international institutions, and a review of related literature. The analysis findings reveal that low productivity is a primary cause of poverty, directly impacting low incomes, limited savings, and minimal investment among the community. UMKM empowerment programs have proven effective in increasing productivity and income through capacity building, market access, and the application of digital technology. Thus, UMKM development not only serves as a driver of the community economy but also as a strategic tool to break the cycle of poverty and promote inclusive and sustainable economic growth.