This study examines the challenges and opportunities faced by rattan industry SMEs in transitioning to a creative economy-based business amid global competition. Using the Business Model Canvas (BMC) as a strategic tool, the research identifies key factors influencing business sustainability and competitive advantage. A qualitative approach was employed, incorporating interviews, observations, and document analysis to provide comprehensive insights into the operations and strategic positioning of rattan business players.
The findings indicate that integrating creative economy principles into business models enhances innovation and adaptability to market changes. Opportunities include leveraging local cultural heritage and craftsmanship to develop unique product offerings. However, significant challenges include resource limitations and restricted market access. The study highlights the importance of strategic partnerships and digital transformation as critical strategies for addressing these challenges and achieving long-term growth.
This research contributes to the understanding of how SMEs in traditional industries, like rattan, can transition effectively to creative economy frameworks. It offers practical implications for policymakers and business practitioners focused on fostering innovation and competitiveness in similar sectors. Future research is encouraged to examine the role of technological advancements in driving business model innovation within the creative economy.