A Study of Micro, Small and Medium Enterprises (MSMEs) during Covid-19 Pandemic: An Evidence using Economic Value-Added Method

Abstract

The global COVID-19 pandemic has impacted various sectors, especially the economic sector. It also significantly impacts tourism and trade industries, including Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Creative products have great potential to deliver a city industry into an advanced and independent creative economy. However, information technology for creative product business resource management is still under investigation, which has weaknesses in administrative, financial, process, and access to banking and financial institutions. Thus, this study seeks to formulate a strategy for improving the MSMEs sector in Lhokseumawe. This study was designed using Mix methods by conducting interviews with 200 MSMEs in Lhokseumawe. The Economic Value-Added is applied in this study, which aims to increase the productivity of MSMEs via the introduction of the acceleration board and collaboration with the Indonesia Stock Exchange. Also, the focus group discussion was conducted by inviting local officials from related Lhokseumawe and academics to complete the model for developing a strategy to increase MSME productivity by focusing on the Economic value-added method. Finally, this study recommends sustainable strategies for the MSMEs in Lhokseumawe when running their business during the Covid-19 pandemic.