Spatial Concentration of Micro and Small Industries (MSIs) in Blitar Regency

Abstract

Micro and Small Industries (MSIs) support economic growth, create jobs, and increase regional income. Blitar Regency, as part of the Development Area Units Seven in East Java, has excellent potential to develop the MSIs sector. However, the growth of this sector is still low, and its distribution is not proportional, resulting in economic disparities between regions. This study aims to analyze the level of spatial concentration of MSIs in Blitar Regency using the Concentration-Deconcentration Index, Distribution Quotient (DQ), and location association analysis (L) methods. The analysis results show that the concentration index has decreased from 29.49 in 2018 to 25.02 in 2023, with a deconcentration value of 4.47, indicating a tendency for a proportional distribution of MSIs. In addition, the location association value between the area and the number of MSIs increased from 70.51 to 74.98, indicating an increasingly strong spatial relationship. The Blitar Regency Government plays a role in encouraging equality through training programs, mentoring, business legality assistance, and the use of digital technology and geographic information systems. The MSIs sector, based on food, beverages, wood industry, and tourism, also significantly contributes to regional economic growth. With various strategic policies based on the needs of business actors, the equality and growth of MSIs in Blitar Regency can continue to be strengthened to support sustainable economic development.