The Roles of Entrepreneurial Skills, Financial Literacy, and Digital Literacy in Maintaining MSMEs during the COVID-19 Pandemic

Abstract

The COVID-19 pandemic has negatively impacted the economic growth of Indonesia. Government regulations to limit large-scale social activities has caused marketing and financial difficulties for micro, small and medium enterprises (MSMEs). Digital and financial literacy have the potential to overcome the problems. This study attempts to identify the determinants of MSME sustainability during the pandemic. By using a questionnaire, this study collected 204 data from MSMEs for further analyses. MSME sustainability is influenced by the digital and financial literacy of MSME owners and is a cause for concern. The implementation of health and safety measures (HSM) has an insignificant impact on business sustainability, but HSM affects financial and digital literacy. Entrepreneurial skills are important to improve HSM and owners’ digital and financial literacy. The government and other parties need to provide more soft loans and facilitate MSMEs to develop entrepreneurial skills, digital and financial literacy to improve business sustainability during the pandemic.

Diversification Strategy and its Impact on Sustainability: Research on Indonesian SMEs

“…SMEs can diversify linearly by expanding their core business or by growing into a firm that is entirely separate from their initial activity to fill a market need, for example (Herrero, 2017). Sustainability is a major problem in all countries around the world, especially given the COVID-19 pandemic (Li et al, 2021;Yanto, Kiswanto, Baroroh, Hajawiyah, & Rahim, 2022). SMEs have been compelled to adapt to the uncertainties of the pandemic by applying a variety of solutions.…”

Determinants of Business Resilience Framework for Small Businesses: Moderating Effects of Financial Literacy

“…Financial resources are one of the key drivers in the development of SMEs. SMEs require funding to remain in business and expand in the future because access to finance increases a firm's capacity to obtain financial resources (Adomako & Danso, 2014;Yanto et al, 2022;Owusu, Ismail, & Osman, 2019). Similarly, financial resources can contribute to the lifelong survival of SMEs in Malaysia.…”

Usaha Mikro Kecil dan Menengah sebagai Sendi Perekonomian Indonesia

“…Salah satu penyebab UMKM yang tidak bisa bertahan saat pandemi karena menurunnya omset penjualan. Padahal hal tersebut bisa diatasi lewat pemasaran digital atau e-commerce dan pengembangan produk (Arifqi & Junaedi, 2021;Djatmiko & Pudyatiwi, 2020;Maulida & Yunani, 2017;Purba et al, 2021;Yanto et al, 2022). Hal tersebut juga merupakan peluang yang bisa dimanfaatkan oleh UMKM untuk pengembangan usaha di era digital.…”