•  
  •  
 

Creative Commons License

Creative Commons Attribution-Share Alike 4.0 International License
This work is licensed under a Creative Commons Attribution-Share Alike 4.0 International License.

Abstract

The catastrophic impact of COVID-19 Pandemic on micro, small and medium enterprises (MSMEs) is well-presented across countries featured on a helicopter view. However, studies on business activities as proxies to business functions that are exclusively affected by the pandemic are scarcely found, which in turn might cause ineffective recovery policy. Using Indonesia as a case in point, this study aims at codifying the particular business activities to proxy the functions that have been impacted across the sectors and business owners’ perception on the government’s policy. The study uses indicators for three business functions that are qualitatively constructed from previous studies to ensure their robustness. Data from the 220 respondents across Indonesia are collected using a non-probability sampling technique and the questionnaire is distributed online. The results are presented in descriptive statistics along with Kruskal-Wallist test to detect any difference across industries and duration of business. The study finds that production is the most severely impacted on creative sectors, whilst human resources issues are rampant for manufacturing and financial issues remain the center of the conundrum for all sectors. Notwithstanding the fatalistic result of downfall in demand of goods and services, the second most impacted business activity is productivity due to the reduced working hour of employees. In terms of COVID-19 Pandemic policy, financing facilities and health protocol are equally impactful for small businesses. These findings provide unambiguous evidence on specific business activities that are impacted, that is beneficial for evidence-based policy making.

References

Abed, S. S. (2021). A literature review exploring the role of technology in business survival during the Covid-19 lockdowns. International Journal of Organizational Analysis. https://doi.org/10.1108/IJOA-11-2020-2501

Abu Hatab, A., Lagerkvist, C. J., & Esmat, A. (2021). Risk perception and determinants in small- and medium-sized agri-food enterprises amidst the COVID-19 pandemic: Evidence from Egypt. Agribusiness, 37(1), 187–212. https://doi.org/10.1002/agr.21676

Aigbavboa, C. O., Aghimien, D. O., Thwala, W. D., & Ngozwana, M. N. (2021). Unprepared industry meet pandemic: COVID-19 and the South Africa construction industry. Journal of Engineering, Design and Technology. https://doi.org/10.1108/JEDT-02-2021-0079

Al-Fadly, A. (2020). Impact of covid-19 on smes and employment. Entrepreneurship and Sustainability Issues, 8(2), 629–648. https://doi.org/10.9770/jesi.2020.8.2(38)

Aladejebi, O. (2020). Managing small businesses in Nigeria during Covid-19 crisis: Impact and survival strategies. Journal of Business and Management, 22(8), 24–34. https://doi.org/10.9790/487X-2208012434

Burhan, M., Salam, M. T., Hamdan, O. A., & Tariq, H. (2021). “Crisis management in the hospitality sector SMEs in Pakistan during COVID-19″. International Journal of Hospitality Management, 98(June 2020), 103037. https://doi.org/10.1016/j.ijhm.2021.103037

Central Bureau of Statistics, I. (2020). Laporan Perekonomian Indonesia. Badan Pusat Statistik Indonesia. Retrieved from https://www.bps.go.id/publication/2020/09/16/be7568ad496829f35cea4b27/laporan-perekonomian-indonesia-2020.html

Cepel, M., Gavurova, B., Dvorsky, J., & Belas, J. (2020). The impact of the covid-19 crisis on the perception of business risk in the sme segment. Journal of International Studies, 13(3), 248–263. https://doi.org/10.14254/2071-8330.2020/13-3/16

Che Omar, A. R., Ishak, S., & Jusoh, M. A. (2020). The impact of Covid-19 Movement Control Order on SMEs’ businesses and survival strategies. Malaysian Journal of Society and Space, 16(2), 139–150. https://doi.org/10.17576/geo-2020-1602-11

Chirume, E., & Kaseke, N. (2020). IMPACT OF COVID-19 ON SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) IN CHINHOYI, ZIMBABWE, 23(1), 101–110.

Darwin, M., Bastian, I., & Sukamdi, S. (2020). What Do Banks , Rural Credit Institutions , and Regulators Infer from the Current Strengths and Standing of Indonesian SMEs ?, 22(1), 1–23.

Eggers, F. (2020). Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research, 116(May), 199–208. https://doi.org/10.1016/j.jbusres.2020.05.025

Elanthi, M. B., & Dhanabhakyam, M. (2021). Agile Workforce a Post Pandemic Revival Plan for SMEs, 1–18. https://doi.org/10.4018/978-1-7998-6632-9.ch001

García-Vidal, G., Guzmán-Vilar, L., Sánchez-Rodríguez, A., Martínez-Vivar, R., Pérez-Campdesuñer, R., & Uset-Ruiz, F. (2020). Facing post COVID-19 era, what is really important for Ecuadorian SMEs? International Journal of Engineering Business Management, 12, 1–9. https://doi.org/10.1177/1847979020971944

Gavurova, B., Cepel, M., Belas, J., & Dvorsky, J. (2020). Strategic Management in SMEs and Its Significance for Enhancing the Competitiveness in the V4 Countries-A Comparative Analysis. Management and Marketing, 15(4), 557–569. https://doi.org/10.2478/mmcks-2020-0032

Godbless, E. (2020). COVID-19 PANDEMIC , THE ULTIMATE TIME BOMB ? : GUAGING THE SOCIO-CULTURAL & SOCIO- ECONOMICS IMPACTS OF THE SCOURGE ON THE Eromafuru Edward Godbless , Delta State University, 19(5), 6104.

Gourinchas, Pierre-Olivier and Kalemli-Özcan, Ṣebnem and Penciakova, Veronika and Sander, N. (2020). COVID-19 and SME Failures. Angewandte Chemie International Edition, 6(11), 951–952.

Gregurec, I., Tomičić Furjan, M., & Tomičić‐pupek, K. (2021). The impact of covid‐19 on sustainable business models in SMEs [El impacto de covid-19 en modelos de negocio sontenibles en PYMES]. Sustainability (Switzerland), 13(3), 1–24.

Hamsal, M., & Ichsan, M. (2021). Business sustainability in the times of crisis: Propositions and framework. IOP Conference Series: Earth and Environmental Science, 729(1). https://doi.org/10.1088/1755-1315/729/1/012049

Huang, A., Makridis, C., Baker, M., Medeiros, M., & Guo, Z. (2020). Understanding the impact of COVID-19 intervention policies on the hospitality labor market. International Journal of Hospitality Management, 91(August), 102660. https://doi.org/10.1016/j.ijhm.2020.102660

James, R., & Navaneethakrishnan, K. (2020). Exploring the effect of Covid-19 on Small and Medium Enterprises: Early Evidence from Sri Lanka. Journal of Applied Economics and Business Research JAEBR, 10(2), 115–125. Retrieved from https://www.researchgate.net/publication/348136545

King, S. S., Rahman, R. A., Fauzi, M. A., & Haron, A. T. (2021). Critical analysis of pandemic impact on AEC organizations: the COVID-19 case. Journal of Engineering, Design and Technology. https://doi.org/10.1108/JEDT-04-2021-0225

Klyver, K., & Nielsen, S. L. (2021). Which crisis strategies are (expectedly) effective among SMEs during COVID-19? Journal of Business Venturing Insights, 16(August), e00273. https://doi.org/10.1016/j.jbvi.2021.e00273

Kulathunga, K. M. M. C. B., Ye, J., Sharma, S., & Weerathunga, P. R. (2020). How does technological and financial literacy influence SME performance: Mediating role of ERM practices. Information (Switzerland), 11(6). https://doi.org/10.3390/INFO11060297

Kurniawati, I., & Kustulasari, A. (2021). Public Value Creation by Private Sector through Cross-Sector Collaboration: A Case Study of the Gojek Wirausaha Program. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi Dan Organisasi, 27(3). https://doi.org/10.20476/jbb.v27i3.12168

Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: evidence from a sample of 4807 SMEs in Sichuan Province, China. Environmental Hazards, 19(4), 323–340. https://doi.org/10.1080/17477891.2020.1763902

Magableh, G. M. (2021). Supply Chains and the COVID-19 Pandemic: A Comprehensive Framework. European Management Review. https://doi.org/10.1111/emre.12449

Marconatto, D. A. B., Teixeira, E. G., Peixoto, G. A., & Faccin, K. (2021). Weathering the storm: what successful SMEs are doing to beat the pandemic. Management Decision. https://doi.org/10.1108/MD-11-2020-1507

Maritz, A., Perenyi, A., de Waal, G., & Buck, C. (2020). Entrepreneurship as the unsung hero during the current COVID-19 economic crisis: Australian perspectives. Sustainability (Switzerland), 12(11). https://doi.org/10.3390/su12114612

Miocevic, D. (2021). Investigating strategic responses of SMEs during COVID-19 pandemic: A cognitive appraisal perspective. BRQ Business Research Quarterly. https://doi.org/10.1177/23409444211005779

Ministry of Cooperatives and Small and Medium Enterprises (2019). Data Pelaku UMKM di Indonesia. Kementrian Koperasi dan UKM Republik Indonesia. Retrieved from https://kemenkopukm.go.id/data-umkm/?NxvjFyc10otwfKp2QXhmTwGeU5B39pO2dmrLXVVyxBISrukcAk

Ministry of Investment. (2020). Klasifikasi Baku Lapangan Usaha Indonesia Tahun 2020. Retrieved from https://oss.go.id/informasi/kbli-berbasis-risiko

Okundaye, K., Fan, S. K., & Dwyer, R. J. (2019). Impact of information and communication technology in Nigerian small-to medium-sized enterprises. Journal of Economics, Finance and Administrative Science, 24(47), 29–46. https://doi.org/10.1108/JEFAS-08-2018-0086

Pakpahan, A. K. (2020). Covid-19 Dan Implikasi Bagi Usaha Mikro, Kecil, Dan Menengah. Jurnal Ilmiah Hubungan Internasional, 0(0), 59–64. https://doi.org/10.26593/jihi.v0i0.3870.59-64

Purnomo, B. R., Adiguna, R., Widodo, W., Suyatna, H., & Nusantoro, B. P. (2021). Entrepreneurial resilience during the Covid-19 pandemic: navigating survival, continuity and growth. Journal of Entrepreneurship in Emerging Economies, 13(4), 497–524. https://doi.org/10.1108/JEEE-07-2020-0270

Rashid, S., & Ratten, V. (2020). Entrepreneurial ecosystems during COVID-19: the survival of small businesses using dynamic capabilities. World Journal of Entrepreneurship, Management and Sustainable Development, 17(3), 457–476. https://doi.org/10.1108/WJEMSD-09-2020-0110

Rodrigues, M., Franco, M., Sousa, N., & Silva, R. (2021). Reviewing COVID-19 literature on business management: What it portends for future research? Sustainability (Switzerland), 13(11). https://doi.org/10.3390/su13115995

Saturwa, Suharno, A. (2020). Covid-19, New Normal, dan Perencanaan Pembangunan di Indonesia. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 4(2), 240–252. https://doi.org/10.36574/jpp.v4i2.118

Singh, S., Kumar, R., Panchal, R., & Tiwari, M. K. (2021). Impact of COVID-19 on logistics systems and disruptions in food supply chain. International Journal of Production Research, 59(7), 1993–2008. https://doi.org/10.1080/00207543.2020.1792000

Skidmore, R. (2020). How can we help small business affected by the COVID-19 crisis? Retrieved October 17, 2021, from http://www.intracen.org/covid19/Blogs/How-can-we-help-small-business-affected-by-the-COVID-%0A19-crisis/

Styaningrum, F., Soetjipto, B. E., & Wulandari, D. (2020). THE DETERMINANTS OF SMEs’ SUSTAINABILITY. Humanities & Social Sciences Reviews, 8(4), 422–430. https://doi.org/10.18510/hssr.2020.8441

Tajudin, P. N. M., Rahim, N. A. A., Idris, K., & Arshad, M. M. (2021). Weathering the economic impact of COVID-19: Challenges faced by microentrepreneurs and their coping strategies during movement control order (MCO) in Malaysia. Pertanika Journal of Social Sciences and Humanities, 29, 271–290. https://doi.org/10.47836/pjssh.29.s1.15

Additional Files
Authorship Statement JBB.pdf (89 kB)
Authorship Statement
Authors Respon_Unveiling the Impact of COVID 19.docx (33 kB)
Author's Respon
Download

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.