Business Model Canvas Implementation on the Performance of MSMEs in Rural Areas

Cuk Jaka Purwanggono

doi:10.37641/jimkes.v13i6.4418

Authors

Cuk Jaka Purwanggono Universitas Wahis Hasyim, Indonesia

DOI:

https://doi.org/10.37641/jimkes.v13i6.4418

Keywords:

Business Model Canvas, Entrepreneurship, Micro Small and Medium Enterprise, Rural Development, Strategic Management

Abstract

This study investigates the influence of implementing the business model canvas on the performance of micro, small, and medium enterprises in rural areas. The Business Model Canvas integrates nine components of business design, including customer relationship, customer segment, cost structure, channel, key activities, key partners, key resources, revenue stream, and value proposition. The objective of this study is to analyze how the structured use of these elements can strengthen business effectiveness and competitiveness within rural development contexts. A quantitative research method was applied through the distribution of questionnaires to business owners in rural communities. The collected data were analyzed using the partial least squares structural equation modeling method to examine the relationship between the implementation of the business model canvas and enterprise performance. The results indicate that the structured application of the business model canvas significantly improves the performance of micro, small, and medium enterprises. Enhanced partnerships, effective communication channels, and strong customer value propositions are identified as major contributors to better organizational outcomes. Practically, this study provides useful insights for policymakers and development agencies in formulating strategic management initiatives that support innovation, efficiency, and adaptability in rural entrepreneurship.

Downloads

Download data is not yet available.

References

Akbar, Q., & Rossieta, H. (2024). Evaluasi strategi bisnis perusahaan start up menggunakan bisnis model kanvas pada PT XYZ. Owner: Riset dan Jurnal Akuntansi, 8(1), 444-454.

Aliwinoto, C., Hediyani, M., & Malinda, M. (2022). Analisis business model canvas usaha mikro kecil menengah. Seminar Nasional Pariwisata dan Kewirausahaan (SNPK), 1(2), 173–182.

Andriyanto, D., Utama, A. A. G. S., & Solikhah, T. I. (2022). Reconstructing business model canvas for bumdes. GIIRJ, 10(8), 101–114.

Anggraini, N. (2020). Analisis usaha mikro dengan pendekatan business model canvas (BMC). Ekonomi dan Bisnis, 6(2), 139–156.

Baden-Fuller, C., & Morgan, M. S. (2010). Business models as models. Long range planning, 43(2-3), 156-171.

Bocken, N., Boons, F., & Baldassarre, B. (2019). Sustainable business model experimentation by understanding ecologies of business models. Journal of cleaner production, 208(2), 1498-1512.

Bradley, P., Parry, G., & O’Regan, N. (2020). A framework to explore the functioning and sustainability of business models. Sustainable Production and Consumption, 21(4) 57-77.

Budiman, N. A., Mulyani, S., Fithri, D. L., Gunawan, B., & Nugraha, F. (2025). Business model canvas and competitiveness on financial performance of MSMEs. Journal of Lifestyle and SDGs Review, 5(1), 16-17.

Casalino, N., Żuchowski, I., Labrinos, N., Munoz Nieto, Á. L., & Martín, J. A. (2019). Digital strategies and organizational performances of SMEs in the age of Coronavirus: balancing digital transformation with an effective business resilience. Queen Mary School of Law Legal Studies Research Paper Forthcoming. 2(3), 41-45.

Cenamor, J., Parida, V., & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity. Journal of Business Research, 100(4), 196–206.

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In Modern methods for business research (pp. 295-336). Mahwah: Lawrence Erlbaum Associates.

Chumaidiyah, E., Maulani Fauzi, P., & Abdulbasah Kamil, A. (2024). Enhancement of SME feasibility through the integration of BMC, functional organization, and SCM. Cogent Business & Management, 11(1), 231-235.

de Reuver, M., Bouwman, H., & Haaker, T. (2019). Business model innovation in digital entrepreneurship: a structured approach. Technological Forecasting and Social Change, 146(2), 882–895.

Erwandi, J. T., Sidauruk, S. A., Septiana, G. A., & Usli, V. A. (2023). Smart-UMKM: aplikasi penyedia business model canvas dan pelatihan sebagai wadah dalam pengembangan UMKM di Indonesia. Jurnal Sistem Informasi, Akuntansi dan Manajemen, 3(3), 375-383.

Ferreira, J. J., Candeias Fernandes, A. J., & Gerschewski, S. (2024). Innovative business models of SMEs: state-of-the-art and future research agenda. Journal of Small Business and Enterprise Development, 31(3), 445-472.

Ghozali, I. (2021). Partial Least Squares konsep, teknik dan aplikasi menggunakan program SmartPLS 3.2.9 untuk penelitian empiris (3rd ed.). Semarang: Universitas Diponegoro.

Gupta, R. K., & Gupta, R. (2024). Fundamentals of Entrepreneurship and MSME Management. Bhopal: Academic Guru Publishing House.

Hijazin, A. F. (2024). Driving digital transformation: Strategies and Innovations in the Jordanian Telecom industry. Granada: Universitas de Granada (Doctoral dissertation).

Hutamy, E. T., Marham, A., Alisyahbana, A. N. Q. A., Arisah, N., & Hasan, M. (2021). Analisis penerapan bisnis model canvas pada usaha mikro wirausaha generasi Z. Jurnal Bisnis dan Pemasaran Digital, 1(1), 1–11.

Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of cleaner production, 135(2) 1474-1486.

Kääriäinen, J., Pussinen, P., Saari, L., & Kuusisto, O. (2020). Applying the positioning phase of the digital transformation model in practice for SMEs: toward systematic development of digitalization. International journal of information systems and project management, 8(4), 24-43.

Mustaniroh, S. A., Prabaningtias, N., & Citraresmi, A. D. P. (2020). Analysis of business development strategies with business model canvas approach. IOP Conference Series: Earth and Environmental Science, 515(1), 71-76.

Mutsaqqof, A. F. T. W., Prakasiwi, I. P., & Saputra, D. I. S. (2022). Community empowerment with business model canvas on hijab hampers (case study@ hampershijabku). Jurnal Pengabdian dan Pemberdayaan Masyarakat Indonesia, 2(6), 208-214.

Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. Hoboken: John Wiley & Sons.

Prameswari, A. G., & Nurhidayah, F. (2020). Penerapan business model canvas dan proyeksi analisis finansial sebagai solusi keberlangsungan kegiatan UMKM di Pamulang. JSMA (Jurnal Sains Manajemen dan Akuntansi), 12(2), 96-114.

Prasetya, S. G., & Maria, M. (2023). Strategi pengembangan bisnis jasa layanan logistik j&t express dengan pendekatan business model canvas (BMC). Jurnal Ilmiah Manajemen Kesatuan, 2(2), 31-37.

Sadikin, A., Naim, S., Asmara, M. A., Hierdawati, T., & Boari, Y. (2023). Innovative strategies for MSME business growth with the business model canvas approach. Enrichment: Journal of Management, 13(2), 1478-1484.

Soetjipto, B. E., Handayati, P., Hanurawan, F., Meldona, M., Rochayatun, S., & Bidin, R. (2023). Enhancing MSMEs performance through innovation: evidence from East Java, Indonesia. Journal for ReAttach Therapy and Developmental Diversities, 6(3s), 124-145.

Suryono, Z. C., Kancana, S., Fatah, Z. K., & Lambang, D. (2024). Analisis business model canvas pada start-up di bidang akuakultur (studi kasus: efishery). Jurnal Administrasi Bisnis (JABis), 22(2), 131-144.

Susanti, D. A., Fithri, D. L., Gunawan, B., Budiman, N. A., Mulyani, S., & Nugraha, F. (2024). The influence of business model canvas on financial performance of micro, small, and medium enterprises (MSMEs). Journal of Ecohumanism, 3(6), 932-945.

Susanto, I., Hartono, S., & Abrianto, T. H. (2024). Business development strategy analysis using the business model canvas approach at genong farm Madiun. Jurnal Ilmiah Manajemen Kesatuan, 5(3), 21-25.

Syahfitri, M., Larasati, M., Sepriyadi, M. I., Atira, P. N., & Andini, T. (2023). Analisis business model canvas upada umkm toko junicomp tanjungpinang. INNOVATIVE: Journal Of Social Science Research, 3(4), 2260-2269.

Syam, M. R., & Hamid, N. (2023, June). Penerapan business model canvas (BMC) dalam mewujudkan kemandirian dan ketangguhan UMKM Di Kabupaten Wajo. Management Dynamics. 8(2), 45-49.

Teece, D. J. (2017). Dynamic capabilities and the multinational enterprise. In Globalization: Strategies and Effects (pp. 105-129). Berlin, Heidelberg: Springer Berlin Heidelberg.

Timergaleeva, D. (2025). Pathways of business model innovation: a process perspective on theory, industry evolution, and firm-level transformation. Strategic Management Journal, 45(2), 345-367.

Ukhrowi, M. Z. (2023). Strategic development of rural halal tourism using the Business Model Canvas framework: A case study from East Java, Indonesia. Journal of Islamic Economics Management and Business (JIEMB), 5(2), 187-202.

van Tonder, C., Schachtebeck, C., Nieuwenhuizen, C., & Bossink, B. (2020). A framework for digital transformation and business model innovation. Management: Journal of Contemporary Management Issues, 25(2), 111-132.

Wijaya, H. D. (2023). Strategi customer-centric dalam marketing: dampaknya pada loyalitas dan retensi pelanggan. Jurnal Manajemen Dan Bisnis Ekonomi, 1(1), 267-279.

Wirati, T. W., Umayah, S., Putra, F. I., Febriyanti, F., Anggara, M. R. S., Laksana, S. A. F., & Aziz, W. (2024). Analysis of business strategy development using the business model canvas approach. Jurnal Ilmiah Manajemen Kesatuan, 8(3), 43-46.

Wulandari, A., Putri Margaretha, R. D., Mulyati, R. S., & Nurizqy, M. (2024, November). Implementasi business model canvas pada UMKM seblak prasmanan noezpoet. In Prosiding Seminar Nasional Manajemen dan Bisnis. 4(3), 9-16.

Zaini, M. (2025). Digital readiness and entrepreneurial agility in tech-based MSMEs of emerging markets. Journal of Economics Management, 1(1), 15-27.

Zhang, Q., Huang, F., Zhang, L., Li, S., & Zhang, J. (2021). The effect of high blood pressure-health literacy, self-management behavior, self-efficacy and social support on the health-related quality of life of Kazakh hypertension patients in a low-income rural area of China: a structural equation model. BMC Public Health, 21(1), 1–10.