A gender-sensitive sustainable model of digital and financial inclusion for women-led MSMEs in Indonesia

This study aims to analyze the level of digitalization and financial inclusion among women-owned MSMEs in Indonesia and to develop a gender-sensitive empowerment model to support inclusive economic growth. A convergent mixed methods approach was employed, involving a survey of 250 women MSME owners in West Java, complemented by in-depth interviews and focus group discussions with financial institutions, government representatives, and business associations. The findings reveal a significant gap between awareness and actual implementation of digitalization and financial inclusion. Although respondents demonstrate high awareness of the benefits of digital technology and formal financial services, their adoption remains limited due to constraints such as limited practical skills, time constraints, lack of mentoring, and structural barriers related to business legality and asset ownership. These findings indicate that improving digital and financial literacy alone is insufficient to drive behavioral change without a supportive and gender-sensitive ecosystem. Based on these results, this study proposes a four-stage empowerment model consisting of (1) strengthening foundational literacy, (2) providing practical training and mentoring, (3) expanding networks and collaboration, and (4) enhancing social and economic impact. This model offers both theoretical and practical contributions by emphasizing a contextual and staged approach to promoting digital and financial inclusion for women-owned MSMEs.