Business Resilience during the Pandemic in Indonesia

Abstract

Micro Small Medium Enterprise (SME) is one of the main contributors to a nation's gross domestic product (GDP). However, with the currentCovid-19 pandemic, it has led to business closing and travel banning disrupting the SME business supply chain. Rahman (2020) highlighted that the SMEs are experiencing sales reduction, difficulty in financing the business and facing trouble in acquiring supply as well as distributing goods during the Covid-19 pandemic. The purpose of this study is to identify the SMEs resilience strategies during this challenging time. This study has taken a quantitative exploratory approach. Data were collected using an online questionnaire survey. Results indicate that SMEs focus on product differentiation as well as cost, financing and technology processes, thus suggesting the companies are resilient to disruptions. In addition, the result suggests that leveraging technology through e-commerce and digital marketing for business products and services facilitate SMEs to survive the pandemic.