COMMUNITY READINESS AS A BUSINESS PLAN TO ITS DIGITAL ERA COMPETITIVENESS

The biggest challenge in facing MSMEs in the era of the industrial revolution 4.0 is their ability to adapt to existing technology. This study aims to find out how the readiness of the community as entrepreneurs towards the industrial revolution 4.0. This research also offers several models that can be applied by business actors to improve business competitiveness. This type of research is explanatory research. Primary data collection in this study used questionnaires and interviews while secondary data collection was carried out using literature. This research uses Structural Equation Modeling (SEM) with the help of Smart PLS software. The results of this study indicate that innovation owned by MSMEs will be able to change market conditions and these conditions will indirectly be able to increase the competitiveness of MSMEs in the industrial revolution era 4.0. Other results in this study indicate that the most dominant factor in influencing the role of government in the development of MSMEs is facilities and infrastructure. The most dominant factor influencing market conditions is innovation, and the most dominant factor influencing business competitiveness is the fulfillment of needs related to facilities and infrastructure to support the development of MSMEs in North Sumatra, Indonesia.