Heliyon (Jul 2022)
Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era
Abstract
The global Covid-19 pandemic has had a major impact on all aspects of life, even in Indonesia, inflation was 2.96% year on year. The pandemic has also caused a decline in production, sales and income of micro, small and medium enterprises (MSMEs), for which recovery is necessary. This study aims to analyze the influence of factors, age, number of workers, length of business, empowerment, human capital, business capital, type of business, business category, and production technology on the income of MSME performers'. This research was conducted in Surakarta which was determined purposively, with a population of all MSME performers' with various types of businesses. This study uses quantitative methods with survey techniques. Samples were taken randomly as many as 210 MSME performers’. Data were collected through structured interviews with questionnaires and Focus Group Discussion (FGD). The results of multiple regression data analysis using OLS (Ordinary Least Squares) and dummy variables indicate that the factors of age, number of workers, length of business, empowerment, human capital, type of business and production technology have a significant effect on income. The use of manual and modern technology, types of culinary businesses and other businesses have a significant influence on income. Own business capital and those from loan capital, as well as micro and small business category are not significant to income. All production factors together have a contribution to income of 42.53 percent (R2). The results of the analysis t-test also show that there is a significant difference between the income of MSMEs that have less than 3 employees and have more than 3 employees, While empowerment can increase MSME income, MSME performers who often participate in empowerment and those who rarely participate in empowerment have no different income. The implications of the results of this study can be used as the basis for formulating an empowerment model for MSME performers that is in accordance with pandemic conditions.
