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Purpose: This study aims to analyze the factors affecting economic resilience in the batik and weaving SME industry in Indonesia, focusing on Pekalongan Batik, Yogyakarta Batik, and Tenun Sengkang. Theoretical Reference: This study integrates National Resilience Theory and Resource-Based View (RBV) to form a robust basis for business resilience, emphasizing community empowerment and innovation. Community empowerment builds batik and weaving businesses on skilled human resources, while innovation facilitates adaptation and growth. Together, they address external challenges like global competition and shifting consumer preferences, enhancing the resilience of batik and weaving enterprises. Method: The research method used was a qualitative approach with descriptive data collection through observation, interviews, and document analysis. The focus of this research is on empowerment and innovation in SMEs of Pekalongan Batik, Yogyakarta Batik, and Sengkang Weaving in Wajo Regency, South Sulawesi. Results and Conclusion: The study reveals that batik and weaving entrepreneurs highly value competitor analysis and the adoption of competitive best practices. Government support through community empowerment initiatives is vital for industry growth, offering crucial assistance such as training, education, and market expansion. Continuous community empowerment and regular program evaluations are essential. Effective collaboration among government, entrepreneurs, and stakeholders is key to fostering a supportive business environment, significantly enhancing the batik and weaving sector's development and overall welfare. Implication of Research: Effective community empowerment hinges on the collaboration among government, entrepreneurs, and stakeholders, ensuring planning, implementation, and evaluation involve all parties. This approach fosters synergies and enhances program effectiveness. Involving entrepreneurs in decision-making tailors programs to actual business needs, while government should ensure entrepreneurs have access to necessary training and education. Orginality Value: This study introduces novel aspects by focusing on the batik and weaving SMEs in Indonesia's specific regions (Pekalongan, Yogyakarta, Sengkang), offering detailed insights into their unique challenges and potentials. It employs a comprehensive approach to business transformation, considering marketing, technology, entrepreneurship, and other performance-related factors, thus providing a wider view on industry development. Additionally, it emphasizes the government's role in fostering a supportive business ecosystem through community empowerment initiatives and highlights the significance of government support, training, education, and collaboration for industry advancement.
Kusnanto et al. (Tue,) studied this question.