Food and Beverage Service Business Continuity in Makassar, Indonesia

Abstract

This research determines the highest inflation rate in Makassar, which reached 4.77%, while the consumer price index was 115.79%. The highest inflation occurred in the transportation group, followed by food, beverages, and tobacco, which further affected the continuity of MSMEs’ F&B services. MSMEs’ F&B services are one of the strategic businesses in the economy and have always been favorites in trade. Makassar is at the node of more efficient distribution services in South Sulawesi Province. This research aims to analyze (1) indicators of creativity and innovation that form entrepreneurial behavior in supporting the continuity of MSMEs’ F&B services and (2) the impact of creativity, innovation, and entrepreneurial behavior on the continuity of MSMEs’ F&B services. This study uses a sequential explanatory design approach by combining quantitative and qualitative research methods. Data were obtained through observation, in-depth interviews, surveys, and documentation, which were then analyzed using structural equation modeling. The research results show that generally, F&B service businesses in Makassar, Indonesia, are dominated by the Rappocini Sub-district with 270 business units, the Panakukang Sub-district with 223 MSME units, and the Ujung Pandang Sub-district with 177 MSME units. Through government policy support, increasing the continuity of MSMEs F&B services through strengthening the creativity and innovation of the business actors will become an important driver for reliable entrepreneurial behavior in Makassar.