STUDY ON THE RESILIENCE AND READINESS OF INFORMAL-SECTOR MICRO-ENTERPRISES IN BANDUNG CITY IN THE POST-COVID-19 PANDEMIC Hilmiana (a*), Yunizar (b), Moh. Fahmi (b), Kurniawan Saefullah (b), Andreas Recki Prasetyo (b)
a & b) Faculty of Economic and Business, Padjadjaran University.
Jalan Raya Bandung-Sumedang KM.21
Abstract
Covid-19 pandemic in Indonesia has impacted the economy seriously, primarily on the micro, small, and medium enterprises. This study aims to identify the effect of the Covid-19 pandemic on the informal-sector micro-enterprises as seen by their resilience in facing the pandemic and readiness to continue their business operations. This study employs primary data obtained from 130 MSMEs in Bandung city. The sample was taken using cluster sampling. Data were disseminated using online and offline questionnaires and then analyzed using descriptive statistics. This study reveals that most of the participating enterprises were highly affected, whereby 84% of them suffered losses, faced various financial difficulties, experienced supply chain disruption, and experienced decreased demands, sales, and profits. In addition, most business owners in this study did not intend to change or formalize their enterprises because they still did not know the steps to take and could not predict profitability in the future. Several recommendations are proposed in this study, mainly regarding the socialization of government programs for informal-sector micro-enterprises, training programs for increasing business capabilities, and promotion aids of the informal sector micro-enterprises. These recommendations are expected to ease the informal-sector micro-enterprises in reviving themselves after the pandemic.
Keywords: Covid-19- MSME- Informal Sector
Topic: Strategic Management, Entrepreneurship and Contemporary Issues
