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This study aims to explore the process of digital transformation and innovative strategies adopted by micro, small, and medium enterprises (MSMEs) in the context of the digital economy. The research focuses on understanding how micro MSME actors adopt digital technology, the challenges they face, and the implications for business independence and competitiveness. A qualitative descriptive approach with a single case study design was employed, focusing on one micro culinary MSME in Medan City. Data were collected through in depth interviews, direct observation, and digital documentation, and analyzed using thematic analysis techniques. The findings indicate that the use of social media for marketing purposes has increased business visibility and expanded customer reach at the local level. However, digital transformation remains at an early stage, constrained by limited capital, low digital literacy, and the lack of integrated digital business systems. These results suggest that digital transformation in micro MSMEs is a gradual and context dependent process that requires strong ecosystem support to enhance sustainable business independence and competitiveness. This study contributes to the literature by providing qualitative empirical insights into digital transformation at the micro enterprise level.

Abstract. This study aims to examine the role of social innovation in accelerating community economic development through a participatory approach based on local potential. Social innovation is seen as an effective new solution to address various social and economic problems, particularly at the community level, by involving communities as key actors of change. This study highlights the importance of collaboration between communities, government, academia, the private sector, and non-governmental organizations in creating an inclusive and sustainable development ecosystem. The results indicate that social innovation can strengthen community economic independence, create alternative economic models such as digital cooperatives and community-based economies, and encourage broad participation in the development process. However, various obstacles remain, such as low digital literacy, limited access to funding, and weak policy support. Therefore, systemic interventions and more progressive policy support are needed to expand the impact of social innovation on sustainable community economic development.

This community service is carried out with the aim of being able to assist program planning in the village. one of which is the management of village-owned enterprises (BUMDes). This research focuses on the role of Village Owned Enterprises (BUMDes) in supporting the economic independence of the residents of Balaroa Pewunu Village. The research method uses a descriptive qualitative approach. Data collection techniques were carried out by observation, interviews and documentation. Furthermore, the analysis technique used is descriptive analysis, which provides a descriptive description of the findings. The results of the study show that BUMDes have a role in supporting village economic independence. The role of BUMDes is by increasing the standard of living which has implications for the growth and equity of the rural economy. Improving people's standard of living is carried out by developing a business selling plant seeds, plant fertilizers, and plant pesticides.