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The Development of Digital MSME in the Covid-19 Pandemic

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  • Lukito, Grace Ignacia

Abstract

The global Covid-19 pandemic that has plagued all countries of the world has affect all sectors of people's lives. In Indonesia, almost all sectors experience impacts, especially the economic ecosystem which has been become the focus of society. Furthermore, the Covid-19 pandemic has made the slowdown in the economic sector in Indonesia with its various derivatives. The Micro, Small and Medium Enterprises (MSME) sector which is part of the most important sector of the economy is very important feel. This is what worried by all parties, because it has made the MSME sector experienced a significant decline. Moreover, currently many MSMEs are experiencing various problems such as: decrease in sales, capital, hampered distribution, difficulty in raw materials, decreased production and the occurrence of many layoffs for workers and hunting which later became a threat to the national economy. MSMEs as a driver of the domestic economy and a middle labor absorber face a decline in productivity which results in a decrease in profits significant. Even based on the related Asian Development Bank (ADB) survey, the impact of the pandemic on MSMEs in Indonesia, 88% of micro businesses run out of cash or savings, and more than 60% of these micro and small enterprises have reduced their workforce work.

Suggested Citation

  • Lukito, Grace Ignacia, 2021. "The Development of Digital MSME in the Covid-19 Pandemic," OSF Preprints q7u2h, Center for Open Science.
  • Handle: RePEc:osf:osfxxx:q7u2h
    DOI: 10.31219/osf.io/q7u2h
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