The Impact of COVID-19 Pandemic on the Performance of Food and Beverage Micro and Small Enterprises (MSEs): A Case Study of Langsa City, Aceh Province

Abstract

The PSBB and PPKM policies were perceived to have caused economic downturns by restricting community activities, including productive economic endeavors. The primary issue in this study is the decline in the GDP of the accommodation food, and beverage sectors in Langsa City in 2020. The research objectives are formulated as follows: (1) to analyze the impact of the Covid-19 pandemic on the income of food and beverage MSMEs in Langsa City; (2) to analyze the impact of the Covid-19 pandemic on the production levels of food and beverage MSMEs in Langsa City; (3) to analyze the impact of the Covid-19 pandemic on the assets of food and beverage MSMEs in Langsa City; and (4) to analyze the impact of the Covid-19 pandemic on the workforce of food and beverage MSMEs in Langsa City. The study was conducted in Langsa City, Aceh Province, utilizing primary data, A purposive sample of 50 MSME owners in Langsa City was selected. Respondents were not categorized by business scale (micro or small businesses). The accidental sampling method was used to determine respondents and data was collected through structured interviews using a questionnaire. The impact of the Covid-19 pandemic on the performance of food and beverage MSMEs in Langsa City was analyzed using for indicators: (1) MSME income, (2) sales volume, (3) assets, and (4) workforce size. A descriptive analysis was performed, followed by a paired sample t-test (with a = 0.05) to compare conditions before and during the Covid-19 pandemic. The analysis concluded that: (1) there was a significant decline in the income of food and beverage MSMEs in Langsa City during the Covid-19 pandemic; (2) there was a significant decline in sales volume; (3) there was a significant reduction in the value of MSME assets; and (4) there was a significant decrease in the number of employees. Keywords: Business, Assets, Number of Employees, Income, Sales, MSMEs