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Anju Andini; Eka Kristina Waruwu; Yusuf Adzka Tarigan

Jurnal Bisnis Kreatif dan Inovatif 2025 Asosiasi Riset Ilmu Manajemen dan Bisnis Indonesia

This study aims to analyze the role of innovation in enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Medan City. The research employs a qualitative approach through direct interviews with several MSME owners from various business sectors. The results reveal that innovation plays a significant role in strengthening business competitiveness through product development, digital marketing strategies, and improvements in production processes. Product innovation among MSMEs includes changes in design, quality enhancement, and product diversification based on market demand. Meanwhile, marketing innovation is achieved through the utilization of social media and digital platforms to expand market reach and improve customer engagement. However, MSME actors still face challenges such as limited capital, low digital literacy, and lack of access to training and mentorship. Therefore, collaboration between business actors, government, and supporting institutions is essential to build a sustainable innovation ecosystem that strengthens the competitiveness of MSMEs in the digital era.

Mazaya Khalda Fachri Berutu; M. Luthfi Lubis; Mhd. Aldri Syahputra; Zainarti Zainarti

Jurnal Bisnis Kreatif dan Inovatif 2025 Asosiasi Riset Ilmu Manajemen dan Bisnis Indonesia

This study explores the roles of innovation and perseverance as critical success factors for young entrepreneurs in the fried chicken business through an in-depth case study of Fried Chicken Smile, located in Medan Tembung Subdistrict. The research focuses on how young entrepreneurs are able to survive and grow in a highly competitive culinary market dominated by global brands such as KFC. Using a qualitative research approach, data were collected through in-depth interviews with business owners and employees, direct field observations, and documentation analysis. The study is supported by several theoretical perspectives, including Grit Theory, which emphasizes perseverance and passion for long-term goals; Entrepreneurial Behavior Theory, which explains proactive and adaptive business behavior; and Schumpeter’s Innovation Theory, which highlights innovation as a driver of competitive advantage. The findings indicate that business success is influenced by continuous product innovation, particularly through adapting menu flavors to local tastes, maintaining consistent operational quality, and implementing effective digital marketing strategies via social media platforms. In addition, strong social support from family, peers, and local communities plays a significant role in sustaining entrepreneurial motivation. Overall, the study demonstrates that the combination of innovation, persistence, and social capital enhances competitiveness and supports the growth of micro, small, and medium enterprises (MSMEs). These findings provide valuable insights for the development of young entrepreneurship in Indonesia’s dynamic culinary sector.

Febrian Danar Wijaya

Proceeding of the International Conference on Economics, Accounting, and Taxation 2025 Asosiasi Riset Ekonomi dan Akuntansi Indonesia

This study investigates the strategic strengthening of the rambak cracker industry as an instrument for local economic development in Penanggulan Village, Pegandon District, Kendal Regency. Rural agro-processing enterprises have increasingly been recognized as territorially embedded production units capable of generating value-added outputs and absorbing surplus labor within localized economic systems. Field-based empirical observations reveal that rambak production in the village operates through household-managed processing systems characterized by traditional production techniques, informal managerial practices, and limited digital marketing adoption despite contributing significantly to community income generation. Data obtained from expert respondents were analyzed using the Analytical Hierarchy Process to identify strategic priority determinants influencing industrial competitiveness and sustainability. The results indicate that product innovation and quality improvement constitute the primary strategic priority, followed by digital marketing development and institutional partnership strengthening, while production capacity expansion remains comparatively less influential in enhancing market competitiveness. These findings suggest that adaptive innovation and digitally enabled commercialization pathways function as critical mechanisms for improving value-chain integration and expanding market accessibility among rural food-processing industries. Strengthening innovation ecosystems within the rambak sector may therefore contribute to employment creation, income diversification, and sustainable community-based economic transformation in rural production clusters.

Sherly Malini; Abdul Rahman; Juli Anggraini; Muhammad Hairul; M. Bambang Purwanto

Karunia: Jurnal Hasil Pengabdian Masyarakat Indonesia 2025 Fakultas Teknik Universitas Maritim AMNI Semarang

This community service program aims to enhance the capacity of traditional clothing UMKM in Palembang through product innovation and business management training in order to support the development of local fashion tourism. UMKM engaged in producing songket, jumputan, and Palembang batik possess significant economic and cultural potential; however, they face various challenges, including limited design innovation, weak business management skills, and insufficient utilization of digital technology for marketing. Through collaboration between the lecturer team of Politeknik Prasetiya Mandiri and the Palembang City Tourism Office, the program was implemented through workshops, business mentoring, and digital marketing training involving UMKM actors, students, and the local community. The results show improvements in participants’ knowledge and skills in developing creative product designs, enhancing production quality, and managing their businesses more professionally. Participants also gained a deeper understanding of digital marketing strategies as an essential tool to expand market reach. This program has contributed positively to strengthening local cultural identity while creating opportunities for creative economic growth through fashion tourism. The implementation of this initiative is expected to serve as a sustainable effort to improve the competitiveness of UMKM and support the economic development of Palembang.

Eko Alamsyah; Sudarmiatin Sudarmiatin; Agus Hermawan

International Journal of Management Science and Business 2025 International Forum of Researchers and Lecturers

This study aims to examine the influence of product innovation, digital marketing, and business networking on the competitiveness of small and medium-sized enterprises (SMEs), with customer engagement positioned as a mediating variable. Employing a Systematic Literature Review (SLR) approach, thirty Scopus-indexed articles published between 2020 and 2025 were analysed to synthesise theoretical and empirical insights related to SME competitiveness in contemporary digital and urban business environments. The findings indicate that product innovation, digital marketing, and business networking each play a significant role in strengthening SME competitiveness, particularly within markets characterised by rapid technological change. Customer engagement emerges as a critical mediating mechanism that connects these strategic variables to sustainable competitive advantage. It enhances the impact of innovative and digital strategies by fostering stronger emotional, behavioural, and participative interactions between SMEs and their customers. The review also highlights that SMEs adopting integrated digital management practices, such as the utilisation of human-resource information systems (HRIS) and data-driven decision-making tend to demonstrate greater adaptability, market responsiveness, and long-term performance. The study contributes theoretically by integrating resource-based and dynamic capability perspectives, offering a holistic understanding of how digital and relational capabilities interact to elevate competitiveness. Practically, the findings provide strategic guidance for policymakers, SME managers, and practitioners in designing innovation-oriented and digitally enabled initiatives that support sustainable SME growth in the digital era.

Bobby Hartanto; Rika Surianto Zalukhu; Suci Etri Jayanti S; Rapat Piter Sony Hutauruk; Suwadi Suwadi +8 more

Jurnal Pelayanan Masyarakat 2025 Lembaga Pengembangan Kinerja Dosen

Micro, Small, and Medium Enterprises (MSMEs) in rural areas still face various challenges in improving product competitiveness, particularly related to the utilization of digital technology and professional product presentation. One of the main issues encountered by MSME actors in Silau Rakyat Village is the limited understanding of digital branding and the lack of innovation in product packaging, which hinders their ability to compete effectively in the digital market. This community service program aims to enhance MSME competitiveness through training and mentoring in digital branding and product packaging innovation. The program was implemented using a participatory and applicative approach through several stages, including preparation, training, and hands-on practice. The main materials delivered focused on MSME digital branding strategies and product packaging innovation as efforts to increase product value. The results indicate an improvement in participants’ knowledge, skills, and awareness regarding the importance of brand identity, the use of digital media, and attractive and informative packaging. In addition, MSME actors began to apply more professional packaging designs and demonstrated a more adaptive attitude toward digital marketing. This community service activity is expected to support the sustainability of MSMEs and strengthen the local economy in Silau Rakyat Village.

Nabila Fajrina; Andriyanto Andriyanto; Rabi'ah Adawiyah; Muhammad Firdaus Isfandi

Proceeding of the International Conference on Management, Entrepreneurship, and Business 2025 Asosiasi Riset Ilmu Manajemen Kewirausahaan dan Bisnis Indonesia

In response to the escalating challenge of packaging waste in the beauty industry, The Body Shop Indonesia has implemented a Green Marketing Mix through its Bring Back Our Bottles (BBOB) and Refill Station programs. This study aims to analyze the strategic implementation of this approach, assess consumer perceptions and engagement, and explore the inherent challenges and opportunities for future development. Employing a qualitative case study approach, the research collected data from five respondents who are The Body Shop consumers with prior participation in either the BBOB or Refill Station programs. Data were gathered through semi-structured interviews, observation, and a comprehensive literature review. Thematic analysis was subsequently performed, with findings validated through source and method triangulation. The results indicate that The Body Shop’s Green Marketing Mix has been effectively implemented, particularly in the elements of product (environmentally friendly packaging), promotion (campaigns via digital and print media), and physical evidence (store design that promotes a natural ambiance). Despite positive consumer responses and a strengthened brand image, persistent obstacles were identified, including limited access to program locations and insufficient information dissemination. The programs were found to be effective in enhancing customer loyalty and hold significant potential for expansion, particularly through targeted education and collaborative initiatives with youth communities. This study recommends expanding the programs’ geographical coverage, strengthening digital communication, and establishing strategic community partnerships. The findings are expected to make a meaningful contribution to the development of sustainable green marketing strategies within the beauty industry.

Alfina Sitangganga; Darwin Lie; Robet Tua Siregar

Proceeding of the International Conference on Management, Entrepreneurship, and Business 2025 Asosiasi Riset Ilmu Manajemen Kewirausahaan dan Bisnis Indonesia

This study seeks to investigate a consumer behavior model by evaluating the impact of interactive technology-driven digital innovation and perceived value on digital engagement, with customer behavior serving as a mediating variable within the retail sector in Jambi Province. A quantitative research design utilized a survey method with 150 retail consumers as participants. We used Structural Equation Modeling–Partial Least Squares (SEM-PLS) to look at both the measurement and structural models. The findings of the measurement model show that all indicators match the requirements for convergent validity. The outer loading values are all over 0.70, which means that the construct is reliable and valid. The evaluation of the structural model indicates that perceived value exerts a positive and significant influence on both consumer behavior and digital engagement. Also, how people act as consumers has a big effect on how they contact with and participate in digital media. This means that people who think retail services are more valuable are more likely to interact with and participate in digital media. Nevertheless, interactive technology-driven digital innovation does not exhibit a substantial direct impact on customer behavior or digital engagement. These findings suggest that value perception is more influential than technology innovation in determining consumer responses inside digital retail environments. This research enhances the body of knowledge regarding consumer behavior and digital marketing by highlighting the strategic significance of perceived value in augmenting consumer involvement within digital retail contexts.

Alvazaki Ikbar Maulana; Muhammad yasin

Jurnal Publikasi Ekonomi dan Akuntansi 2025 Asosiasi Riset Ekonomi dan Akuntansi Indonesia

This study aims to analyze the factors determining the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia through a literature review approach. MSMEs make a significant contribution to the national economy, but their growth still faces various structural barriers. Based on the results of the literature review, it was found that access to capital, human resource quality, managerial capacity, innovation, digitalization, marketing strategies, and government policies are the main factors influencing MSME growth. Limited capital and low financial literacy are dominant obstacles that hinder business expansion. Furthermore, weak managerial capacity and digital competency prevent many MSMEs from optimally exploiting market opportunities. Innovation and the use of digital technology have been proven to increase efficiency and marketing reach, but the adoption rate remains low. External factors such as government regulations, simplified licensing, and support from empowerment programs also play a significant role in creating a conducive business climate. This study emphasizes that MSME development requires a comprehensive approach that integrates internal aspects of business actors and structural government support. The research results are expected to serve as a reference for academics, policymakers, and MSME actors in formulating more effective development strategies.

Rahma, Daniar Wulan Aura; Prastiyas, David Indra; Makatita, Tegar Fajar Ramadhan; Cahyarani, Dyah Mita; Nugroho, Gwenda Vania Putri +1 more

Jurnal Bisnis Kreatif dan Inovatif 2025 Asosiasi Riset Ilmu Manajemen dan Bisnis Indonesia

The objective is to analyze the competitiveness of modern retail through the integration of SWOT analysis as a basis for formulating more targeted strategies using qualitative descriptive methods. This paper identifies the strengths, weaknesses, opportunities, and threats that drive the performance of modern retail based on literature and empirical findings from various previous studies. The results of the analysis show that the main strengths of modern retail lie in product completeness, competitive prices, strategic locations, and operational efficiency. Meanwhile, weaknesses arise from suboptimal digitization, minimal online promotion, limited service innovation, and outdated inventory management. Meanwhile, opportunities arise from changes in digital-based shopping behavior, while threats emerge from the dominance of large retailers, e-commerce competition, and economic fluctuations. Based on the SWOT integration, a strategy is formulated that includes strengthening digitalization, optimizing online marketing, improving service quality, and modernizing operational systems to support long-term competitiveness.

Sari Sirait, Syah Paradiba

Jurnal Riset sosial humaniora, dan Pendidikan (Soshumdik) 2025 LPPM Universitas 17 Agustus 1945 Semarang

This study aims to analyze the potential and business development strategies of Warung Misop Kampung Yani Mbotz in Tanjung Morawa District as a representative of traditional culinary MSMEs. The main problems identified are limited capital, simple business management, and the lack of digital promotion. This research employs a qualitative descriptive method with a case study approach, using direct observation, interviews with the business owner, and document analysis. Data were analyzed using the SWOT (Strengths, Weaknesses, Opportunities, Threats) framework to identify internal and external factors, and the Business Model Canvas (BMC) to formulate development strategies. The results reveal that the main strengths of the business lie in authentic taste, affordable prices, and customer loyalty. Weaknesses include limited menu innovation, underutilized digital promotion, and the absence of systematic financial recording. Opportunities arise from the growing public interest in traditional culinary products and government support for MSMEs, while threats come from competition with modern food outlets, fast-food chains, and rising raw material prices. The strategies formulated through the BMC framework include product innovation, service diversification, the optimization of social media marketing, and the strengthening of business networks. The study concludes that applying BMC-based strategies can enhance the competitiveness of Warung Misop Kampung Yani Mbotz while preserving traditional culinary heritage. These findings are expected to serve as a reference for other culinary MSMEs in developing their businesses sustainably.

Ahmad Syaickhu; Purwanto Purwanto

Jurnal Pengabdian kepada Masyarakat 2025 Lembaga Pengembangan Kinerja Dosen

This community service program aims to strengthen institutional capacity and develop the business units of the Padangan Village-Owned Enterprise (BUMDes) through enhanced managerial capabilities, business innovation, and enhanced digital marketing strategies tailored to local potential and needs. The program was implemented using a participatory empowerment approach involving various stakeholders, including the village government and local economic actors. The methods used included needs assessment, management and entrepreneurship training, intensive mentoring, and collaborative business planning. The program's results demonstrated significant improvements in BUMDes organizational governance, administrative professionalism, and a more organized and accountable financial reporting system. Furthermore, business unit diversification, local product quality improvement, and community capacity to utilize digital technology for marketing activities increased. The program also provided academic contributions in the form of empirical data and an applicable model of village empowerment based on Islamic economics. Overall, empowerment based on participation and Islamic economic values ​​has been proven to promote sustainable village economic resilience and independence.

Rizoura, Fatur Rahman; Sihotang, Gresia Natalia; Situmeang, Rastha Caronika

Jurnal Ekonomi, Bisnis dan Manajemen (EBISMEN) 2025 FEB Universitas Maritim Semarang

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.

Indah Raissa Qur`ani; Haryanti, Peni

Jurnal Bisnis, Ekonomi Syariah, dan Pajak 2025 Asosiasi Riset Ekonomi dan Akuntansi Indonesia

The rapid development of digital technology demands that Islamic banks innovate to compete with conventional banks and digital financial institutions. This study aims to analyze the product differentiation strategies implemented by Islamic banks to increase competitiveness in the digital era. The research method used is a descriptive qualitative approach, with data collected through literature studies, interviews, and observations of Islamic banks' digital services. The results indicate that product differentiation strategies are implemented through the development of digital services based on Sharia principles, improving the quality of mobile banking services, and creating innovative products that meet the needs of millennials and digital natives. Furthermore, the application of the values of transparency, fairness, and sustainability serves as a competitive advantage that distinguishes Islamic banks from conventional competitors. In conclusion, the success of product differentiation in the digital era depends on the ability of Islamic banks to integrate technological innovation with Sharia values, thereby increasing customer trust and loyalty and strengthening their competitive position in the digital financial industry.

Muhammad Chairil Denny; Rizqy Kemit; Najwa Annisa Putri; Kayla Pratiwi; Dionisius Sihombing +1 more

Maeswara : Jurnal Riset Ilmu Manajemen dan Kewirausahaan 2025 Asosiasi Riset Ilmu Manajemen Kewirausahaan dan Bisnis Indonesia

MSMEs are a sector that plays a vital role in the Indonesian economy, both as labor absorbers and significant contributors to Gross Domestic Product (GDP). However, amidst increasingly competitive business competition, the sustainability of MSMEs is largely determined by the ability of entrepreneurs to formulate and implement appropriate business strategies. This study aims to analyze the role of business strategies in increasing revenue by taking a case study of the Dimsum Mentai MSME in Medan City. The research method used is a qualitative approach with data collection techniques through interviews, observation, and documentation. The research results show that the business strategies implemented by the Dimsum Mentai MSME include product innovation through a combination of traditional and modern flavors, the implementation of value-added packages to reach consumers with diverse purchasing power, the selection of a strategic business location near student activity centers, and the use of social media as a digital promotional tool. These strategies have been proven to increase consumer appeal, expand market reach, and positively contribute to increasing business revenue. Thus, it can be concluded that business strategy plays a crucial role in maintaining competitiveness and increasing revenue for MSMEs in the culinary sector. The findings of this study are expected to contribute academically to the development of MSME business strategy studies and provide practical recommendations for entrepreneurs to optimize their business potential amidst constantly changing market dynamics.

Arwenda Adyratna Putri D; Aprilia Dian Evasari; Endah Kurniawati

Jurnal Manajemen Kewirausahaan dan Teknologi 2025 Asosiasi Riset Ilmu Manajemen Kewirausahaan dan Bisnis Indonesia

The development of the batik industry today requires business actors to be able to implement effective marketing strategies in order to increase competitiveness and encourage consumer purchasing decisions. This study aims to analyze the effect of promotion, product innovation, and digital marketing on purchasing decisions for Batik Lochatara products in Wates, Kediri Regency. This research uses a quantitative method with a survey approach through distributing questionnaires to Batik Lochatara consumers in Wates, Kediri Regency. The analysis techniques used in this study include multiple linear regression, partial test (t test), simultaneous test (F test), and the coefficient of determination to determine the contribution of each independent variable to the dependent variable. The results of this study indicate that partially promotion, product innovation, and digital marketing have a positive and significant effect on purchasing decisions. While simultaneously, the three variables are also proven to have a significant influence on purchasing decisions with an adjusted R-square value of 0.743 or 74.3%. This means that purchasing decisions at Batik Lochatara can be explained by promotion, product innovation, and digital marketing by 74.3%, while 25.7% is influenced by other factors not studied. This finding confirms that the right promotional strategy, continuous product innovation, and digital marketing optimization are important factors in increasing consumer interest and purchasing decisions for local batik products in modern markets.

Putri Yani, Diar; Diar Putri Yani; Marsani Arif; Arif Nursetyo

Jurnal Elektronika dan Komputer 2025 STEKOM PRESS

Penelitian ini bertujuan untuk mengembangkan sistem pendukung keputusan yang dapat membantu tim Marketing Officer (MO) PT. Alvarel Technology Innovation dalam menentukan status pelanggan secara objektif dan terstruktur. Sistem ini dirancang menggunakan kombinasi metode Analytical Hierarchy Process (AHP) dan Weighted Sum Model (WSM). Metode AHP digunakan untuk menentukan bobot kriteria yang meliputi Potensial Pasar, Urgensi, Finansial, serta Hubungan dan Reputasi, dengan memastikan konsistensi matriks perbandingan berpasangan. Hasil pembobotan kemudian digunakan dalam metode WSM untuk melakukan perhitungan skor total pelanggan dan menyusun pemeringkatan status berdasarkan nilai tertinggi hingga terendah. Data penelitian diperoleh dari catatan internal perusahaan dan wawancara dengan Marketing Officer, dengan jumlah sampel 30 pelanggan. Hasil pengujian menunjukkan bahwa sistem dapat menghasilkan peringkat status pelanggan dalam lima kategori, yaitu potensial, prospek, pending, pasif, dan skip. Temuan utama memperlihatkan bahwa kategori prospek memperoleh skor tertinggi dan menjadi prioritas tindak lanjut. Dengan demikian, sistem pendukung keputusan berbasis AHP–WSM ini mampu mengurangi subjektivitas, meningkatkan efisiensi, serta memberikan rekomendasi yang lebih akurat dan terukur untuk mendukung pengambilan keputusan strategis perusahaan dalam pengelolaan pelanggan.

Bilqis Nabila Istiqlaliani; Agung Winarno; Wening Patmi Rahayu

Jurnal Bisnis Kreatif dan Inovatif 2025 Asosiasi Riset Ilmu Manajemen dan Bisnis Indonesia

The development of digital technology has greatly influenced consumer behavior, particularly among Generation Z, who are dominant in Indonesia's hijab fashion market. This shift requires businesses to adapt their strategies to meet the dynamic, trend-driven, and digitally-savvy preferences of young consumers. This study examines the business development strategy of Leenavie.id, a hijab brand, and the challenges it faces in targeting Generation Z. Using a qualitative approach with case study methodology, in-depth interviews with business owners were conducted to gain insights into the business development process. The findings show that Leenavie.id focuses on product innovation, competitive pricing, social media as a primary distribution and promotion channel, and leveraging e-WOM for brand awareness and emotional connections with consumers. Success indicators include a high repeat order rate, positive market response, and external collaboration offers. However, challenges such as limited capital, small production capacity, and underutilization of the marketplace hinder scalability. The study suggests that enhancing digital adaptation, strengthening operational capacity, and fostering strategic collaborations are key to improving the competitiveness and sustainability of local hijab businesses. Future research should include consumer perspectives for a more comprehensive understanding of customer behavior and loyalty.

Atika Sulastri; Yuni firayanti; Marhamah Marhamah

Kajian Ekonomi dan Akuntansi Terapan 2025 Asosiasi Riset Ekonomi dan Akuntansi Indonesia

This study aims to analyze the marketing strategies implemented by CV Mitra Agung to increase consumer purchasing interest in the Sungai Pinyuh District. Using a qualitative descriptive approach, data collection was conducted through in-depth interviews, direct observation, and documentation studies. The results of the analysis indicate that the implementation of an integrated marketing mix (product, price, place, and promotion) has been significantly successful in increasing both consumer purchasing interest and loyalty. The main supporting factors for this success include offering products with consistent quality, setting competitive prices compared to competitors, active and creative promotions, especially through the use of social media, and selecting a strategic and easily accessible business location. Despite showing positive results, this study also identified several challenges faced by the company, namely limited operational capital and limited market reach, which need to be addressed for future business development. Based on these findings, several important recommendations are provided, These include continuous innovation in product variants, optimizing and maximizing the use of digital media platforms to increase brand awareness, and improving the quality of customer service. These recommendations are expected to help CV Mitra Agung expand its market share, improve sales performance, and ensure business sustainability.

Mika Lestari; Qayla Sa’adatu Gina; Salsa Dzakia Fitriani; Endah Ayu Atika; Nur Nadya Anggraeni +5 more

Jurnal Pengabdian Masyarakat 2025 Lembaga Pengembangan Kinerja Dosen

This study aims to improve the welfare of curly red chili farmers in Tanjung Seteko Village through the innovation of processing fresh chili into chili oil. The background of this research lies in the low added value of fresh chili and frequent price fluctuations that cause unstable farmer incomes. The study employed a descriptive qualitative approach involving preparation, implementation, and evaluation stages, with purposive sampling covering farmers, farmer group members, housewives, and village officials. Data were collected through observation, interviews, documentation, and questionnaires. The results indicate that processing chili into chili oil can extend shelf life up to 1–2 months at room temperature and more than 6 months under refrigeration, reduce harvest losses by 30–40%, and significantly increase economic value compared to selling fresh chili. A single production process using 5 kg of curly red chili yields 16 liters of chili oil with an estimated selling price of IDR 1.500.000-2.000.000 per production cycle, showing that simple processing activities can provide substantial added value for farmers. Beyond economic benefits, this innovation strengthens community empowerment by improving processing skills, encouraging economic independence, promoting participation in value-added businesses, and reinforcing local economic resilience. The social impacts also include youth and women empowerment and broader opportunities for local product–based entrepreneurship. The study recommends continuous capacity development, digital marketing strategies, and ongoing mentoring to optimize farmer welfare. Therefore, processing curly red chili into chili oil is a strategic solution to enhance income, skills, and sustainable rural economic development.