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MSME) During COVID 19 Outbreak in South Sulawesi Province Indonesia

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MSME) During COVID 19 Outbreak in South Sulawesi Province Indonesia May – June 2020 ISSN: 0193-4120 Page No. 26707 - 26721 Factors Influencing Resilience of Micro Small and Medium Entrepreneur (MSME) during COVID 19 Outbreak in South Sulawesi Province Indonesia Muhammad Hidayat¹, Fitriani Latief², DaraAyu Nianty³ ShandraBahasoan⁴AndiWidiawati⁵ ¹²³⁴⁵STIE Nobel Indonesia Article Info Abstract: Volume 83 Aim: To find out factors influencing resilience of Micro Small and Medium Page Number: 26707 – 26721 Entrepreneur MSME entrepreneurs during the worlwide spread of COVID-19 Publication Issue: pandemic, this study aims at empirically examine the influence of entrepreneurial May - June 2020 personality in utilizing technology and government support for business resilience through crisis management as an intervening variable. Research design, data and method:This research is a quantitative study analyzing sample of 97 small and medium enterprisesactors in South Sulawesi, Indonesia, chosen by using purposive sampling. The main data in this study is results of questionnaires distributed to respondents which is analyzed by using Partial Least Square (PLS analysis). Results and Findings: This study proves a positive and significant relationship between entrepreneurship personlity and crisis management. Thereis no significant relationship between utilizing of technology toward crisis management. There is a Article History positive and significant relationship between government supporttoward crisis Article Received: 11 May 2020 management. This research also proves a positive and significant influence between Revised: 19 May 2020 crisis management on business resilience. Accepted: 29 May 2020 Publication: 12 June 2020 Keywords: Entrepreneurship Characteristic, Technology Utilization, Government Support , Business Resilience I. INTRODUCTION viruses that infect the respiratory system. This viral infection is called covid-19. The world has been being troubled by the Coronavirus causes common cold,amild to appearance of corona virus. Corona virus moderate upper-respiratory tract illnesses, actually did not appear offhanded, because and even more severe illnesses such there was mentioned a deadly virusin asMiddle East Respiratory Syndrome 1918-1919 called Spanish flu. The virus (Mers-CoV) and Severe Acute Respiratory was deadly and became a pandemic and Syndrome (SARS-CoV). This virus first killed 40 million people at the time appeared in Wuhan China on December (https://katadata.co.id/2020). However, the 2019 then it was spreading very fast to spread of this deadly corona virus disease various countries, and now it is already (covid-19), according to the experts, is consider as a pandemic, devour across the more virulent than its predecessor virus. world. World Health Organization (WHO) states that coronaviruses (cov) are Published by: The Mattingley Publishing Co., Inc. 26707 May – June 2020 ISSN: 0193-4120 Page No. 26707 - 26721 According to worldometers stability ofrupiah exchange rate which is (10/4), globally there were 1,607,595 cases currently at the level of Rp. 15,900 per US of covid-19, 95,785 people died and Dollar.It has been pressured at the lowest 357,164 people recovered from these level on Rp 16,575 per US Dollar on cases. This case is still experiencing an Monday (3/23). upward trend which is shown from several The chronological perspective countries. This trend also appears in shows that there are actually Indonesia, the case increases quite interrelationships between the impact of significant. As of April 10, there were 219 the virus spread in China and Indonesia additional cases, so as the total cases were becauseChina is the largest exporter 3,512 in whichthe total cases treated was country in the world and Indonesia is a 2,924, 306 dead and 282 recovering. trading partner of China. Thus, the Moreover,it is predicted that there will be worsening of trade in China will greatly the next surge of this virus. affect conditions in Indonesia such as the Variouspolicies began to emerge demand for raw materials in China. in responding the case. Start from the Because of trading activities in China implementation of work from home, social experienced disruption, a decline in distancing and physical distancing, up to a commodity prices occured. large-scale social restriction (PSBB) is Various impacts arised which is regulated as well. Of course this will quite hard to bear is a decline of tax leadto the impact on economy of revenue, mainly from trade sector. As Indonesia. Governmentand public must be widely known, taxes have a budgetary ready for what happens if the spread of function that is one of sources of funds in virus continues to drag on. The impact of country development, both central and corona virus spread occurs in various regional governance. Tax collection from sectors, both in real sector and stock trade sector has large contribution in tax market. Themost impact is the economy revenue. This is related to the decline of globally in Indonesia where the growth is production in China, which is the center of slowing down. world goods production. It causes Itis predicted that if Covid-19 in obstacles of some supply of raw materials Indonesia can be overcomed immediately, and other goods. Trading volume also economic growth will still be above 4%. experienced disruption which However, government must also be consequently affecting tax revenue. prepared in case the pandemic persists for The disruption ofraw materials another 3-6 months, the situation will be supplies greatly affects economic activities worsen where economic growth estimated for businesses. Because of the hindrance in at 2.5% or even 0%. The plague of corona production activities, many companies virus also had an impact on the plunge in experience difficulties due to reduced stock trading. Indonesia Composite Index income so they cannot afford to pay their (ICI) has fallen sharply, even workers which leads to employment SucorSekuritas analysts explained that ICI layoff. As a result, many people have could possibly fall down below3000 level difficulties to earn money which finally (detik.com, 20/3). Anotherimpact is the triggerslow economic growth if this Published by: The Mattingley Publishing Co., Inc. 26708 May – June 2020 ISSN: 0193-4120 Page No. 26707 - 26721 pandemic outbreak becomes more Nevertheless, currently Ministry protracted. of Finance as Indonesia goverment states Institute of Development that the MSME sector has been the most Economics and Finance (Indef) states that negatively affected. Small businesses have the impact of corona virus on Indonesia's experienced a drastic decline in income economic growth rate can be traced due to the implementation of physical through the correlation of economic distancing. However, opportunities of low relations between China and Indonesia. A sales are not intended for some MSMEs very large correlation in trade and because product sales have been carried investment between Indonesia and China out on line systems. The resilience of these resulted in a decline in economic growth. MSMEs should be used as a model of This means that China’s economy shrink entrepreneurial resilience so that it is very affects the economic downgrowth in important for us to know the extent to Indonesia. Itcan be said that for every 1 which this resilience can be realized in percent in Chinese economic growth, the MSME and what factors influence the Indonesian economy can be affected by resilience. 0.3 percent. Indef projects that China's II. LITERATUREREVIEW economic growth will only be around 5 MSMEresilience percent in 2020,shrink 1 percent compared Crisis is one of threats to the to 2019. The magnitude of corona existence and performance of a business virus(covid-19) effect on economic growth (Boin, 2009) ; (Comfort, 2002); (Williams, is not only affect Indonesia but also the Gruber, Sutcliffe, Shepherd, & Zhao, economic growth of ASEAN region and 2017). Likewise, COVID-19 which is even the global economy. currently happening has become a real It has been around six months threat and challenge to the business world that COVID 19 attacked Indonesia, not only in certain regions but all endanger the economy and businesses. entrepreneurs globally. Currently However, there is still economic activity scientists, academic researchers and all by small business owners and some of the social observers are working hard to be medium-sized enterprises of this business able to provide solutions in order to pass group appear to have better the crisis with good anticipation so that the resilience.Micro Small and Medium impact can be controlled. Oneof these Enterprises (MSME) proven to survive efforts is to find out what can be done by when the multidimensional crisis hit business owners in facing the current crisis Indonesia in 1998. MSME was even andhave it as a guide in dealing with crises considered as a 'savior of the national in the future time(Kuckertz et al., 2020). economy' at that time. This is in line with Research conducted by what was revealed by Joseph Alois (Kuckertz et al., 2020)offersfelicitous Schumpeter, an American economist, that information especially about what must be the economic growth of a country is very prepared both by individual business dependent on the resilience of MSMEs owners and the government support when facing a crisis. system as a regulation to help business existenceof entrepreneursamidst pandemic. Published by: The Mattingley Publishing Co., Inc. 26709 May – June 2020 ISSN: 0193-4120 Page No. 26707 - 26721 It also can be a guidelines dealing with (4) possess a
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