Analysis of Digital Literacy and the Readiness of MSMEs in Setupatok Village in Facing Digital Transformation

Digital transformation is a major challenge for traditional micro enterprises, yet village level MSMEs are rarely captured in national digitalization statistics. This study aims to describe the level of digital literacy, the level of readiness for digital transformation, and the barriers to digital adoption among micro enterprises in Setupatok Village, Mundu District, Cirebon Regency. A descriptive mixed methods design was used. Fifteen MSME actors from five trading and culinary business types were selected purposively. Data were collected through a ten item Likert questionnaire covering five digital literacy indicators and five readiness indicators derived from the Technology Readiness Index, complemented by open ended questions and on site interviews. Questionnaire data were tabulated into frequencies, percentages, and mean scores, while interview data were analyzed using the Miles and Huberman interactive model. The results show that digital literacy is at a low to basic level (mean 2.45 of 5.00); 11 of 15 respondents (73.3%) disagreed that they use Google Maps or Google Business Profile, and 10 respondents (66.7%) disagreed that they accept QRIS payments. Readiness is also low (mean 2.56): discomfort and insecurity scores were high, while optimism and innovativeness were moderate. The main barriers are limited device and internet access, low technological understanding, distrust of non cash payment security, age and habit factors, and the absence of continuous mentoring. The study concludes that rural micro enterprises are still at an early stage of digital transformation and require practice based, continuous mentoring rather than one way socialization.