Relevance: Journal of Management and Business
Vol. 5 No. 1 (2022)

Covid-19 Pandemic: The Effectiveness of Utilizing Micro Business Productive Assistance (BPUM) for MSMEs

Ishak Ishak (Fakultas Ekonomi dan Bisnis Islam, IAIN Palopo, Indonesia)
Nur Ariani Aqidah (Fakultas Ekonomi dan Bisnis Islam, IAIN Palopo, Indonesia)
Junastri Junastri (Fakultas Ekonomi dan Bisnis Islam, IAIN Palopo, Indonesia)



Article Info

Publish Date
26 Jun 2022

Abstract

This study examines the impact of the COVID-19 Pandemic on MSMEs and how the effectiveness of utilizing business capital assistance paid by the government affects their survival during the COVID-19 Pandemic. Through a survey of 110 respondents (namely debtors/beneficiaries), this case study finds that the COVID-19 Pandemic has caused business delays, so the government assistance program has become the key to MSME business continuity during the COVID-19 Pandemic. With government assistance, the business actors in the sample of this study could maintain their business. Even though the overall labor force is decreasing and income is decreasing, some small, medium, and micro-enterprises can maintain or even increase workers and their turnover due to government assistance. This study recommends continuing the assistance program for MSMEs by loosening requirements and focusing on new beneficiaries, an integrated MSME database, and in the future, the assistance program needs to be integrated with financial literacy and MSME innovation programs. The policy implication of this study is that the government's economic recovery plan during the future recession needs to target MSMEs. KEYWORDS: Effectiveness of Utilization, Business Capital Assistance, MSMEs

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Journal Info

Abbrev

relevance

Publisher

Subject

Economics, Econometrics & Finance

Description

RELEVANCE aims to publish articles in the field of Islamic Management and Business, including but not limited to research results, scientific studies, and field ...