The Effect of Entrepreneurial Marketing Perceptions on MSMEs Business Performance During Covid-19 Pandemic in Bogor City

Rinda Tri Wijayanti,Mimin Aminah,Mukhamad Najib

doi:10.17358/ijbe.8.1.24

Abstract

This study aims to analyze the factors that affect the business performance of Micro, Small and Medium Enterprises (MSMEs) during the COVID-19 pandemic in Bogor City. The research was carried out during January-February 2021 on 150 MSME respondents with the criteria of a food processing business, a minimum business age of 2 years or have opened a business before the pandemic period. The data processing method employed in the form of quantitative descriptive analysis, cross-tabulation and using the SEM-PLS. The results showed that the characteristics of the business doers described by gender, age, educational background, reasons for pursuing a business, initial work before starting a business, the beginning of running a business, length of business which reflected by age and education level had a correlation with production techniques on internal environmental factors. External environmental factors have a significant positive effect on entrepreneurial marketing and performance which are explained by government policy aspect, socio-cultural and economic aspect, role of related institutions aspect and aspect of competitors, from these indicator variables, socio-cultural and economic aspects most reflect the external environment from the business doers. Internal environmental factors have a positive and significant effect on entrepreneurial marketing, but on the contrary, the higher the internal environmental factors, the lower the business performance. Entrepreneurial marketing shows a significant and positive influence on the business performance of MSMEs in Bogor City with a proactive indicator that can reflect entrepreneurial marketing, while business performance is reflected by the customer growth indicator. Keywords: business performance, business environment, COVID-19 pandemic, entrepreneurial marketing, MSMEs

Highlights

The ongoing COVID-19 pandemic has a significant impact on various sectors of life in the economic aspect (Fernandes, 2020)
The conclusion obtained from the description of this research is the factors that influence the MSMEs business performance in Bogor City which are the external environmental factors, the internal environmental factor and the entrepreneurial marketing factor
The external environmental factors which consist of aspects of government policy, socio-cultural and economic and the role of related institutions have a significant and positive effect on internal factors of MSMEs which are reflected by socio-cultural and economic aspects

Summary

Introduction

The ongoing COVID-19 pandemic has a significant impact on various sectors of life in the economic aspect (Fernandes, 2020). According to Thaha (2020), the Micro, Small and Medium Enterprises (MSMEs) are the front guard sectors which experiencing instability as the effect of the COVID-19 pandemic and its survey showed that more than 50% of MSMEs are indicated to suffer significant losses. The losses due to the COVID-19 pandemic in the MSMEs sector have a great contribution to Indonesia’ economic development where business doer felt the direct impact in a form of decreasing sales rate due to the low demand of customer goods. During the COVID-19 pandemic situation, there were 37,000 MSMEs reported statements of detrimental losses where it estimated 56% of MSMEs experienced a sales decline, 22% reported problems in the financial aspect, 15% reported problems related to goods distribution, and 4% as the rest experienced difficulty in getting raw materials (http://kemenkopukm.go.id, 2020)

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