Effects of motivation and infrastructure on MSME (Micro Small Medium Enterprise) performance in the time of COVID-19 pandemic

Abstract

The COVID-19 pandemic has severely impacted MSMEs; most of them stopped due to difficulties in producing and obtaining raw materials because of the rigorous health protocol policy; only a small amount can still survive. The smoked fish home industry is one of them. The main problem is constrained by facilities and resources as well as the motivation to keep their spirit during the pandemic Covid 19. This study aims to determine the effect of motivation, facilities and human resources on the performance of this home industry using SEM analysis. The results of this study showed that the performance of MSMEs was influenced by skill and facilities (not motivation). Skill and facilities significantly impact performance (income, turnover, and productivity), while the motivation was only for their family and themselves to survive in the covid era.