Program 2: Entrepreneurship and Digital Marketing Training Program in the Labor-Intensive Region of West Nusa Tenggara

1. Introduction

West Nusa Tenggara (NTB) has an economic foundation dominated by Micro, Small, and Medium Enterprises (MSMEs). Data from the NTB Cooperatives & SMEs Office shows that the province is home to more than 1.2 million MSMEs, which collectively contribute significantly to the GRDP and absorb over 80% of the local workforce.

Figure 1. NTB Micro, Small, and Medium Enterprises (MSMEs)

This fact confirms that MSMEs are a social safety net and a driving force for the people’s economy. Labor-intensive areas, such as Mataram City, tourism centers in Lombok, and economic zones in Sumbawa, are thriving thanks to MSMEs in the culinary, crafts, fashion (woven fabrics), and service sectors.

However, a major challenge is scalability. The majority of these MSMEs still operate traditionally, with limited (local) market reach and unstandardized management. They are labor-intensive, but not yet technology-intensive. In the digital economy era, this gap is a major obstacle to “moving up the ranks.”

Therefore, the Sino International Research and Development Foundation, through its “Workshop” and “Coaching” programs, initiated the “Entrepreneurship and Digital Marketing Training Program” to bridge the digital divide and accelerate the growth of NTB’s MSMEs.

2. Program Objectives

General Objective: To create a competitive, digitally adaptive NTB MSME ecosystem that is capable of penetrating national and global markets.

Special purpose:

1. Improve digital and financial literacy for MSMEs.
2. Provide practical technical skills in digital marketing (e.g., product photography, copywriting, social media management, and digital advertising).
3. Facilitate MSME onboarding to national e-commerce platforms and marketplaces.
4. Strengthen the branding and storytelling capacity of local products in West Nusa Tenggara.
5. Create local champions (exemplary MSMEs) who have successfully adopted digitalization as inspiration for the community.

3. Human-Based Economic Potential (Services, Tourism and Creative)

This program intervention is focused on the human-based economy (services and creativity) which has the highest potential multiplier effect in NTB:

• Tourism & Supporting Economy: As a Super Priority Destination (DSP) in the Mandalika Special Economic Zone (KEK), West Nusa Tenggara (NTB) enjoys a high tourist flow. MSMEs in the culinary, accommodation, and craft sectors are key pillars of tourism. Digital marketing enables them to reach tourists (domestic and foreign) even before they arrive in NTB, through platforms like Google Maps, Instagram, and TripAdvisor.
• Creative Economy: NTB is rich in high-value creative products, particularly woven fabrics (Lombok, Sumbawa, Bima), pearls, and coffee. Currently, added value is often captured by intermediaries outside the region. Digitalization breaks this chain, enabling artisans to sell directly to end consumers (direct-to-consumer), dramatically increasing profit margins.
• Digital Services: This program not only targets product owners but also creates new jobs in the service sector. This training will produce young freelancers in the service sector (graphic designers, social media administrators, photographers) who can serve the needs of other MSMEs in their area.

4. The Role of Youth

Youth are the main accelerators in this program. In many family-owned MSMEs, there is a digital divide between owners (the older generation) and the market (the younger generation). Youth, as digital natives, play a crucial role:

• Business Successors (Regeneration): Become the driving force behind digital transformation in family businesses.
• Change Agents: Become facilitators who bridge the knowledge gained from this training to the local MSME community.
• New Job Creators: Young people are encouraged to not only seek work but also create jobs as technopreneurs in the digital marketing sector.

5. Future Projections and Impact Analysis

For the 1.2 million MSMEs in West Nusa Tenggara (NTB), the digital transition is no longer simply an option it is a quantum leap for survival and growth. Our analysis projects that this intervention will trigger a transformative impact, freeing MSMEs from the physical limitations that have hampered their potential.

The main challenge for NTB’s MSMEs is not product quality our coffee, woven fabrics, and crafts are competitive but rather market access. Currently, the majority (around 90%) remain trapped at the “micro” scale, operating in traditional markets that are limited by geography and operating hours. This program is designed to break this isolation.

To visualize this transformation, below is a descriptive analysis table comparing the baseline conditions with the projected impact:

Table 1. Descriptive Impact Analysis: MSME Transformation

Analytical Dimension	Traditional Condition (Baseline)	Projected Post-Digital Intervention
Market Reach	Local & limited – dependent on physical traffic and word of mouth.	National & Global – connected to marketplaces and international audiences.
Marketing Efficiency	High cost, low ROI; uses physical media (banners, brochures).	Low cost, high ROI; targeted ads with data measurement and A/B testing.
Revenue Potential	Stagnant/Incremental – linear growth tied to holiday seasons.	Exponential – 30–60% potential revenue increase (verified by Google/Temasek study).
Business Scalability	Trapped in “Micro Level”; limited capital and market access.	Accelerative – ~ 10% participants scale up within 24 months.

The comparative analysis above is not merely a hypothesis; it is a strategic roadmap. This intervention will shift the marketing paradigm. Traditional marketing costs (printing banners/brochures) are expensive, sunk costs that are difficult to measure. Digital marketing (e.g., Facebook/Instagram ads) is a precise investment. With a budget as small as IDR 20,000/day, a weaver in Bima can showcase her products to thousands of fashion enthusiasts in Jakarta or Bali, with a clearly measurable Return on Investment (ROI).

This represents a fundamental shift from local (district) to national (Jakarta, Surabaya) and even global (Malaysia, Australia) reach through 24/7 e-commerce storefronts. National data (Google & Temasek, 2024) validates this, showing that fully digitized MSMEs have the potential to experience a 30% to 60% increase in revenue. Our projection is ambitious yet measurable: at least 10% of participants in our intensive mentoring program will successfully “upgrade” from Micro to Small, or Small to Medium within 24 months of training. This is not simply an increase in turnover; it is a structural metamorphosis driven by access to a broader market.

To realize this projection in a structured manner, we have designed the following phased implementation framework:

Table 2. Program Projection Planning

Time Frame	Main Focus & Activities	Key Performance Indicators (KPI)
Short-Term (Year 1)	Literacy & Adoption: roadshow workshops in five labor-intensive areas; basic digital training (product photos, FB/IG Business).	500 MSMEs digitally literate; 100 (20%) onboarded to marketplaces or social media.
Medium-Term (Years 2–3)	Acceleration & Local Champions: intensive coaching for 50 selected MSMEs (SEO, Ads, Branding).	50 Local Champions formed; average 30% income increase; 1 digital community established.
Long-Term (Years 4–5)	Scalability & Export: build NTB MSME aggregator for exports; integrate digital skills into vocational curricula.	≥ 5 MSMEs exporting; model adopted by local government; NTB known as digital creative hub.