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All Journal Journal of Indonesian Applied Economics
Devanto Pratomo
Universitas Brawijaya
Economics, Econometrics & Finance

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The Impact Of Digital Technology In The Entrepreneur Transition During The Covid-19 Pandemic Tasmilah Tasmilah Tasmilah; Devanto Pratomo; Wildan Syafitri
Journal of Indonesian Applied Economics Vol. 10 No. 1 (2022)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2022.010.01.6

Abstract

The Covid-19 pandemic has decreased the number of entrepreneurs assisted by permanent workers in Indonesia. Using SAKERNAS Data of August 2019 and 2020, this study uses multinomial logistic regression to estimate the impact of digital technology in the entrepreneurial transition during the Covid-19 pandemic. The results show that digital technology and the internet have a negative and significant effect on the transition of formal entrepreneurship in Indonesia. The use of digital technology and the internet will prevent formal entrepreneurs from transitioning into informal entrepreneurs or leaving entrepreneurship. Increasing digital technology usage and the internet for promotional and sales purposes will enable entrepreneurs to survive amid a pandemic. In addition, building information technology infrastructure such as Base Transceiver Station (BTS), especially in rural areas, is necessary to increase internet coverage and encourage business scale-up in rural areas.
Co-Authors Tasmilah Tasmilah Tasmilah Wildan Syafitri