Development of Small Businesses During Economic Crises

Abstract

This is a descriptive study that aims to estimate the impact of three economic crises (i.e., the 1997/98 Asian financial crisis, the 2008/09 global financial crisis, and the COVID-19 pandemic crisis) on small businesses in Indonesia and to explore their crisis mitigation measures (CMMs). It adopted an exploratory methodology with comprehensively reviewing the available literature (e.g., policy documents, research papers, and reports) on the subject being studied. The data collection technique applied was literature study. It shows that different types of crises have different transmission channels through which such crises affected small businesses. CMMs adopted by affected small businesses also vary by different types of crises and hence different business risks. To the best of author's knowledge, this is the first study that examines transmission channels through which such crises affected small businesses in Indonesia.