THE EFFECTIVENESS OF DIRECTING OPTIONAL ACTIVITIES AS CAPITAL FOR SMALL AND MEDIUM ENTERPRISES BASED ON DIGITALIZATION IN THE CRISIS

Abstract

Purpose: This study aims to increase and direct the capital owned by SMEs so that they are able to survive in crisis conditions. Theoretical framework: During the covid-19 crisis, companies sought innovative ways to survive. They must utilize inter-business networks, select productive activities, and adjust their marketing strategies. Agents of artificial intelligence have been utilized as a "creative class" (public knowledge). All SMEs are unprepared for the first time in economic history to adapt to the COVID-19 pandemic crisis. Therefore, SME managers must learn from COVID-19. Design/methodology/approach: Qualitative descriptive approach was used aims to direct choice activities with individual performance in groups, data collection techniques with surveys. The research is focused on 300 small and medium-sized enterprises (SMEs) in five industrial areas in Central Java (Semarang, Pekalongan, Tegal, and Brebes) that are directly affected by the COVID-19 pandemic crisis.