Empowering Resilience: How Digital Tools and Environmental Practices Can Foster Growth in the Informal Business Sector

Abstract

Yogyakarta, Indonesia, has a massive informal sector lacking social security and facing challenges like limited credit. This study explores how digital tools (online marketplaces) and environmental practices (recycling) can empower these businesses. This research employs a qualitative methodology, with approaches including documentation and interviews. In addition, the artificially intelligent NVivo 12 Plus is employed as an analytical tool in this study. The research highlights artisans and street vendors as potential beneficiaries. Employing in-depth interviews and document analysis, the study found that entrepreneurial skills and social networks are crucial for informal business resilience in Yogyakarta. However, the absence of legal protections, vulnerability to violence, and wage uncertainty were identified as major hurdles. This research provides valuable insights for policymakers looking to improve the informal sector in Yogyakarta and similar regions. It offers a novel approach by combining digitalization and environmental practices to address challenges and empower informal businesses.