Implementation of Fuzzy C-Means for Clustering MSMEs in Jambi Province

MSMEs play a crucial economic role, significantly contributing to job creation and innovation. In Jambi Province, the chips processing sector exhibits intriguing dynamics, yet understanding the characteristics of MSMEs in this sector remains limited. This research uses the Fuzzy C-Means method to analyze the variations of MSMEs in the sector by clustering them based on key variables, such as total assets, average turnover, and number of workers. The analysis results reveal three clusters. The first cluster consists of MSMEs with high assets that need to enhance turnover strategies. The second cluster includes MSMEs with moderate assets and high turnover, reflecting effective asset management. The third cluster consists of MSMEs with low assets that operate efficiently. The silhouette value is 0.6214, indicating a reasonably good separation between clusters. The third cluster has the most members and low dispersion, meaning its MSMEs share similar characteristics, making them well-suited for targeted financial support to boost growth and employment. These findings provide insights for stakeholders to design more targeted policies and support programs, aiming to enhance the competitiveness of MSMEs and contribute to Indonesia’s 2045 development goals.