A Financial Perspective on SMMEs Developmental Position During the Covid Pandemic

Abstract

The COVID-19 pandemic certaintly has an impact on the economy, not only in Indonesia but also in the world. When the crisis hit in the 1997-1998 period, only SMMEs could strongly survive. The Minister of Finance, Sri Mulyani Indrawati observed this condition differently during the economic crisis during the current COVID-19 pandemic. The economic crisis due to the COVID-19 pandemic was felt as a tremendous pressure for SMMES actors because they could not hold business activities optimally as a result of community activities. Therefore, research related to the position of SMMEs development during the COVID-19 pandemic was important to be conducted in finding out the impact of this situation on the economic sector. The population of this study was 32,890 SMMEs with a sample of 110 SMMEs determined by the use of Slovin formula. The results showed that there were several differences viewed from many terms experienced by SMMES actors before and after facing the economic crisiss due to COVID-19 pandemic, such as; in terms of sales, income, and operating profit.