Mpact Evaluation of Covid-19 Technical and Financial Assistance Policies on Micro, Small and Medium Enterprises (Msmes) In Surakarta City

Abstract

The Covid-19 pandemic has had the greatest impact on micro, small, and medium enterprises (MSMEs) in the neighborhood. Community members, particularly the impoverished, feel the economic impact. In Indonesia, the number of MSMEs reached 64.19 million, with Micro and Small Enterprises (MSEs) constituting the vast majority of the business sector (64.13 million, or 99.92%). The Covid-19 pandemic also negatively affects this group. Surprising facts include the fact that managers of micro, small, and medium-sized enterprises (MSME) are in debt and even die trying to sustain their businesses. Covid-19 has altered the economic foundation of the populace, and as a result, numerous regions in Indonesia are suffering economic challenges, particularly for small and microeconomic players. Approximately 1,642 hotels and 6,800 eateries have shuttered in Indonesia, a number that might rise if the Covid-19 outbreak persists for an extended period of time. This amount does not include the thousands of units in the entertainment business sector. Some micro, small, and medium enterprises (MSMEs) were unable to do business as normal during the COVID-19 pandemic and were even forced to temporarily cease operations for a variety of reasons, including lower buying power, low market share, and other impediments. The distribution and manufacturing inadequate circumstances affect a large number of MSMEs. Almost 90% of MSMEs have vanished or even declared bankruptcy. This significant result illustrates the severity of the challenges encountered by people who are disadvantaged in the formal sector, especially the urgent need for support in finance and marketing, as the majority of MSMEs are able to create but are unable to sell their goods. This study aimed to determine the effects of technical and financial support on MSME players in Surakarta. This research approach employs a qualitative descriptive research method that combines descriptive and qualitative processes to produce a thorough examination of the research topic. Descriptive research methods describe phenomena that occur in the field, whereas qualitative research methods explain the depth of the observed events. In addition to the impacted MSMEs' community, the local government is also included in the research sample.