The effect of Covid-19 on the economy of Bangka-Belitung and the performance of MSME and its impact on competitive strategies in the new normal era

Abstract

Purpose: The economy in the MSME sector is experiencing a great crisis in the face of the Covid-19 pandemic. MSME actors must change strategies to adapt to the current pandemic conditions. The purpose of this study was to examine the effects of Covid 19 on the economy and performance of MSMEs as well as the strategies adopted by MSME players in Bangka Belitung Province. Research methodology: The data collection method employed probability sampling with google form media analyzed by using cross tabulation, trend analysis and simple mathematical modeling in projecting total economic losses to MSMEs that are active in the Bangka Belitung Island Province. Results: The results show that 84.7 percent of MSMEs experienced a negative impact due to the Covid 19 pandemic in the form of a decrease in sales turnover, reduced demand and hampered distribution of raw materials. However, 15.3 percent of MSMEs experienced a positive impact and survived in the Covid 19 pandemic conditions. Some of the strategies implemented by MSMEs to survive in the Covid 19 periods were replacing products sold with products for handling COVID 19 such as masks, hand sanitizers and others. MSME players also changed their sales strategy by selling online and maintaining customer databases. Limitation: Due to the Covid-19 condition, survey activities were carried out by using the Google Form online application. Contribution: MSMEs undertook a more aggressive marketing strategy to maintain turnover value in order to keep growing. Keywords: Covid-19, MSME, Turnover, Competitive strategy

Explaining the revival strategies of Indian MSMEs to mitigate the effects of COVID-19 outbreak

“…, 2020). The findings are consistent with previous studies (Das and Kundu, 2020; Reniati et al. , 2020; Liguori and Pittz, 2020; Mardi and Siregar, 2021; Dash and Chakraborty, 2021; Panjaitan et al.…”

“…With the advent of the Internet, entrepreneurs should not only identify new customers and opportunities but also develop new business models to survive as well as to thrive in their businesses (Liguori and Pittz, 2020). To survive the pandemic and grow in the future, entrepreneurs opted for an online selling strategy and maintenance of customer databases (Reniati et al, 2020). The findings are consistent with previous studies (Das and Kundu, 2020;Reniati et al, 2020;Liguori and Pittz, 2020;Mardi and Siregar, 2021;Dash and Chakraborty, 2021;Panjaitan et al, 2021).…”

The Mapping of Regional Tax and Levy in Pangkalpinang

“…The three levy reception posts with the lowest growth had negative growth values, meaning that the trend decreased between 2016 and 2020 due to the Covid-19 outbreak. These results are in line with the research results (Reniati et al, 2019).…”

COVID-19 Pandemic on MSMEs in Bandar Lampung

“…Another qualitative study examining the impact of COVID-19 on MSMEs reported a decrease in the turnover of MSMEs actors during the pandemic (Amri, 2020). Similarly, the study by Reniati et al (2019) reported that the turnover of the MSMEs in Bangka Belitung was below 10 million, which was lower than before the pandemic. Another qualitative research that examined MSMEs found that the threat of COVID-19 affected the income decrease of MSMEs (Akpan et al, 2020;Andika et al, 2020;Fathoni, 2019;Sarmigi, 2020;Soehardi et al, 2020).…”