MSMEs and Local Economic Growth: A Feasibility Study of Metal Recycling Business in Mojokerto

Abstract

This feasibility study examines the potential expansion of UD. Lukman Abadi, a microenterprise engaged in recycled tin casting. Employing an evaluative qualitative approach, the analysis covers six key dimensions: legal, marketing, financial, technical, environmental, and socio-economic. The findings indicate that UD. Lukman Abadi complies with legal requirements for business operations and adopts a demand-oriented marketing strategy. From a financial perspective, the enterprise is considered viable, with a Payback Period of 11.5 months and a Break-Even Point of 25 units. The business also benefits from adequate production facilities, an efficient management system, and a well-structured organizational framework that support operational effectiveness. Social and environmental contributions include local job creation and sustainable waste management practices. These indicators—combined with organizational readiness and environmental compliance—highlight the enterprise’s financial and operational feasibility. Overall, this feasibility study contributes to the broader discourse on MSME development strategies in resource-based manufacturing sectors across Southeast Asia.