The Effects of Economic Crisis on Business Finance

Abstract

A crisis is a period associated with events that occur unexpectedly that have a negative impact on the organization. The economic crisis is caused by an unforeseen world situation so it must provide a fast, precise and accurate decision so as not to affect the organization's overall operations as a bold step to minimize unintended consequences. A crisis is an event that can destroy an organization and its employees, products, services, and the financial condition of a business enterprise like a corona outbreak. An economic crisis if left unchecked can cause a financial situation that is a concern, a crisis which is an event that has a broad scope of society. The crisis has the potential to cause long-term damage to the financial image of a business company will lose public trust in consumer confidence can weaken the morale of company employees who are experiencing a crisis, can pose the risk of increasing the intensity of the problem. Thus, the aim of this paper is to examine the effects of economic crisis on buriness finance. The data analysis technique uses the structural equation modeling technique, which involved 400 Indonesian small and medium entrepreneurs and 162 samples collected on employees. The results show that the effect of the economic crisis on the financial statements of Indonesian medium and small micro traders plays an important role in the economic crisis so that business finance business is very influential when there is uncertainty in the environment, the financial statements of small and micro business enterprises sweeping across the globe hit making bad changes in the financial statements of micro and small business entrepreneurs in Indonesia. This research was conducted on micro small and medium entrepreneurs in Indonesia.

Linkages to Budgetary Control and Budgetary Absorption Performance

“…Therefore, the budget of local government in Indonesia needs to use incentive-based compensation, with the main objective to encourage work motivation in realizing the budget that pro public services, where the current relative is not fully committed. Hertati et al (2020) empirical study indicates that the requirements of external authorities have been conducted regarding the budget of local government in Indonesia, there proved to be budget authorization activity and budget validation that must be guided in the prevailing laws and regulations, in Where budget control is associated with budget absorption performance that has been accommodating the incremental budget (input-based). Similarly, budget absorption performance should be able to reveal efficiencies on all lines (inputs, processes, outputs).…”

Pengembangan UMKM Unggulan Gambo Muba Produk Lokal Guna Menopang Perekonomian Rakyat Akibat COVID-19

“…Kesuksesan dalam berbisnis ditandai dengan tercapainya tujuan bisnis dan proses pengembangan meningkat pesat (Hertati, 2020).…”

“…Sikap dasar manajemen bisnis menjadi pondasi yang kuat bagi UMKM agar produk tetap diminati masyarakat sehingga dapat membangun bisnis didalam jangka panjang (Hertati, 2020).…”

“…Manajemen keuangan merupakan cara untuk memperoleh uang sebagai mesin produksi serta proses penggunaan uang tersebut bisa disusun secara rinci. (Hertati, 2020) UMKM Kearipan Lokal Muba Keunggulan UMKM Gambo Muba adalah berbeda dengan UMKM lainya, dimana UMKM Gambo Muba dikerjakan dengan tangan tanpa dibantu mesin dan hubungan antar manusia, kompetensi didalam merakit usaha mikro kecil menengah yang berhubungan dengan kemampuan menjaga, membangun, mengembangkan, hubungan baik dengan orang, serta pihak yang berkepentingan dengan aktivitas masyarakat umum, seperti penyalur barang, pemasok bahan, pangsa pasar dan masyarakat umum UMKM Kearifan Lokal Muba dengan ciri-ciri sebagai berikut: 1. Mengatur keuangan secara efisien Dalam mengelola keuangan, penting bagi pelaku UMKM untuk menentukan persentase di awal saat melakukan perencanaan bisnis dan anggaran, bisnis UMKM yang memiliki acuan untuk alokasi operasional kegiatan, target keuntungan yang ingin dicapai, cadangan kas hingga pengembangan bisnis.…”

The Effect of Coronavirus on the Sustainability of Public Company and Its Financial Performance

“…The impact of the coronavirus in Indonesia has also resulted in an economic crisis. This cannot be allowed to drag on, because it can cause long-term weakening of financial conditions [11]. In planning the financial performance of public companies in Indonesia, it is necessary to pay attention to risk management, to adapt to changing conditions, so that business sustainability is maintained [12].…”