Bridging Policy and Practice: Evaluating Local Government Support for MSME Development in Peripheral Regions

Authors:
Hani Haidoura, V. Pradeep Kumar, S. Suman Rajest, Muhammad Saleem

Addresses:
Department of Management and Finance, Lebanese French University of Technology and Applied Sciences, Koura, Lebanon. Department of Management Studies, Dhaanish School of Management, Dhaanish Ahmed College of Engineering, Chennai, Tamil Nadu, India. Department of Research and Development, Dhaanish Ahmed College of Engineering, Chennai, Tamil Nadu, India. Department of Management and Economics, Kunming University of Science and Technology, Kunming, Yunnan, China.

Abstract:

The paper examines the effectiveness of local government policy implementation in developing MSMEs in Merauke Regency, given its peculiar geopolitical situation. As a strategic economic reserve in the output region of Papua, Merauke faces its own challenges: logistical isolation, a digital infrastructure gap, and typical socio-cultural behaviour. The main goal is to assess whether local laws reflect the actual growth needs of indigenous and transmigrant entrepreneurs. The study used a dataset of 429 non-repetitive cases from registered business owners in five districts. Tools used for analysis include Python for pre-processing data and performing statistical classification, and full-featured visualisation software that allowed me to create contour plots and mixed histograms. The analysis examines factors such as capital availability, the frequency of government-sponsored training, and the speed of licensing. Findings reveal a wide gap between policymaking and its implementation in the field, especially in financial aid allocation and the digitalisation of licensing services. The policy infrastructure is in place, but the administration's slamming doors block it from trickling down to the grassroots. These results also articulate actionable strategies for reorienting local government programs to promote better inclusion and greater resilience in the MSME ecosystem in the area.

Keywords: Policy Implementation; Economic Development; Local Government Policy; Policy Communications; Growth and Resilience; Economic Development; Logistical Isolation.

Received on: 13/02/2025, Revised on: 18/04/2025, Accepted on: 15/06/2025, Published on: 03/01/2026

DOI: 10.64091/ATITP.2026.000267

AVE Trends in Intelligent Technoprise Letters, 2026 Vol. 3 No. 1 , Pages: 19–27

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