The factors contributing to the sustainability of agribusiness MSMEs in Sukoharjo Regency during the Covid-19 pandemic

Abstract

MSMEs play a significant role as one of the elements that encourage the national economy and the Indonesian government highly supports the development of competitive and innovative MSMEs. Making innovation is one of the MSMEs' efforts to survive during the Covid-19 pandemic because innovation and technology development can generate a creative industry. Technology development can support business activities but MSME players are also challenged with the Covid-19 pandemic today. However, the challenge can turn into an opportunity if they can take the advantage of using technology for online marketing. Competitive MSME players can improve their performance, which can keep their existence and contribute to their business sustainability. This research aims to investigate the factors influencing the sustainability of agribusiness MSMEs in Sukoharjo Regency during the Covid-19 pandemic. This research applied SEM analytical method with SmartPLS 3.0 software. The respondents taking part in this study were 120 agribusiness MSMEs operating in Sukoharjo Regency. The results of the research signify that the factors affecting the sustainability of agribusiness MSMEs in Sukoharjo Regency include the external environment, MSME players' perception, and infrastructure/technology utilization.