SMEs Resilience During the Covid-19 Pandemic: A Case Study in Indonesia

DOI

10.2991/aebmr.k.210831.138How to use a DOI?

Keywords

SMES, Resilience, Covid-19, Digital Transformation

Abstract

The purpose of this study is to describe the resilience of MSME businesses in Indonesia during the COVID-19 pandemic. MSMEs are one of the affected industries by the COVID-19 pandemic. The existence of lockdown policies in several countries has suddenly stopped economic activity which resulted in a drop in demand and disruption of supply chains throughout the world, including in Indonesia. This study uses a qualitative method with a case study approach. The data collection technique used in this study is participatory observation using secondary data sources from research results, references and online news that are directly related to this research. The results show that the resilience of SMEs can be seen from the perspective of profitability and resilience in the perspective of competitiveness with two main key factors, namely resources (tangible and intangible resources) and strategy (the way companies compete). The resilience of the MSME business in Indonesia can be seen from the constraints experienced by MSMEs during the pandemic, such as declining sales, lowering selling prices to increase buyer interest, decreasing raw material availability due to limited distribution processes, doing layoffs, and being unable to pay credit installments. MSMEs that are able to survive during the Covid-19 period include MSMEs that are already connected to the digital ecosystem by utilizing the existing marketplace in Indonesia.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sulastri
AU  - Hari Mulyadi
AU  - Disman
AU  - Heny Hendrayati
PY  - 2021
DA  - 2021/09/02
TI  - SMEs Resilience During the Covid-19 Pandemic: A Case Study in Indonesia
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 727
EP  - 731
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.138
DO  - 10.2991/aebmr.k.210831.138
ID  - 2021
ER  -