THE INFLUENCE OF MICRO AND SMALL DEVELOPMENT WITH A NON-FORMAL EDUCATION MODEL AND COMPETITOR PRESSURE ON BUSINESS ACTORS READINESS TO ADOPT TECHNOLOGICAL TRANSFORMATION

Abstract

The dynamic evolution of digital technology poses a critical challenge to the sustainability of Micro, Small, and Medium Enterprises (MSMEs) amid increasingly aggressive market competition. However, amidst these challenges, there is a significant digital divide among business owners. This study aims to analyze the influence of capacity building using a non-formal education model and competitor pressure on the technology adoption readiness of MSME entrepreneurs in Banyumas Regency. The research method is quantitative, with data collected through structured questionnaires administered to MSME entrepreneurs selected using random sampling. Data analysis was conducted using the SPSS statistical platform. The results of the analysis indicate that capacity building through a non-formal education model has a positive and significant effect on the technology adoption readiness of MSME entrepreneurs. Conversely, the analysis of the competitor pressure variable revealed that it has no significant effect on the technology adoption readiness or adoption rate of business owners. These findings indicate that internal capacity built through a foundation of comprehensive education and mentoring is far more significant than external threats in driving the digital transformation of MSMEs in Banyumas Regency.