The Impact of Covid-19 on Micro, Small, and Medium Enterprises

Evidence of Early-State Losses From April to August 2020

DOI

10.2991/assehr.k.210125.017How to use a DOI?

Keywords

Covid-19, Micro, Small, Medium, Enterprises, Aceh

Abstract

The COVID-19 novelty has affected our lives in various aspects and it has spread with alarming speed, infecting millions, and bringing economic activities to a near standstill. COVID-19 pandemic is not just a health crisis, but it is also affecting societies and economies at their core. Small businesses tend to be vulnerable during the economic crisis, in part because they have fewer resources with which to adapt to a changing context. The aim of this research is to explore the impact of COVID-19 on the micro, small, and medium enterprises (MSMEs) in Dewantara Aceh Indonesia, focusing on three questions. Firstly, how did the coronavirus affect the activities of economic societies? Secondly, how did small businesses adjust to the economic disruptions resulting from COVID-19? Thirdly, what were the estimated first-stage losses that were caused by the COVID-19 pandemic? The data were collected in a time scale of five months from April to August 2020. This research was conducted through a qualitative method with primary data collection techniques including socio-economic surveys, participant observations, and interviews. Meanwhile, the research data were completed with a comprehensive secondary literature review that has a correlation to the research topic. The result of this study showed that the COVID-19 pandemic caused income of MSMEs decreased due to lack of costumers and instability of economic activities. In order to survive, the MSMEs entrepreneurs used online marketing strategies (Instagram and Facebook) and provided free delivery system. For the last five months, the MSMEs did not experience any losses due to COVID-19 because they adjusted the selling products based on market demands so that expenses can be proportional to their income.

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  - Muhammad Zawil Kiram
AU  - Muhammad Ikhwan Saputra
AU  - Fakhrurrazi
PY  - 2021
DA  - 2021/01/26
TI  - The Impact of Covid-19 on Micro, Small, and Medium Enterprises
BT  - Proceedings of the International Conference on Social Science, Political Science, and Humanities (ICoSPOLHUM 2020)
PB  - Atlantis Press
SP  - 99
EP  - 103
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210125.017
DO  - 10.2991/assehr.k.210125.017
ID  - Kiram2021
ER  -