FINANCIAL CONSTRAINTS ON MSMES IN COVID-19 SITUATION (INDONESIAN CASE)

Arin Ayu Erza Dianita, Uci Tri Ayunda, Kenny Fernando

Abstract


The COVID-19 is unavoidable; not only by global companies but also by the Micro Small Medium Enterprises (MSMEs). The impact of it is felt by Indonesia and all countries in the world. Focusing on financial constraints that MSMEs have been facing, we tried to examine the effect of (1) entrepreneurial experience, (2) Type of enterprises, (3) Type of industry, (4) Financial Constraints towards (5) Growth of MSMEs in the COVID-19 condition. In this study, we can see that entrepreneurial experience and innovation such as online sales will be more helpful to reduce an obstacle that has a terrible impact on the business while the enterprise type and industry type do not make a difference in the severity of financial constraints felt by MSMEs. In addition, the result shows a positive influence between financial constraints and firm growth during the pandemic.


Keywords


financial constraint, MSMEs, entreprenurship

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