TESTING THE IMPACT OF COVID-19 ON MSMES IN KENDARI CITY, INDONESIA

Abstract

The pandemic is another wave of uncertainty that causes economic and business failure and uncertainty, especially micro and small businesses. This study aims to find out the impact of the Covid-19 pandemic on MSMEs, a case study of Kendari City, Southeast Sulawesi. The estimation results show that the pandemic crisis affects the economic system, especially micro, small, and medium enterprises (MSMEs), a decrease in income, and disruption of the absorption of the number of workforces causing an increase in unemployment. Indeed, this affects business turnover, business, and changes in marketing strategies. Almost 60% of micro, small, and medium enterprises in Kendari City, Southeast Sulawesi experienced economic problems due to the Covid-19 pandemic since its emergence in Indonesia. Particularly in Southeast Sulawesi, it is predicted that the decline in MSMEs will occur due to the lack of use of technology in marketing their products due to limited available funds.

Keywords: Covid-19, impact, MSMEs