Maintaining the SME's Business in The Pandemic Era

Micro, small and medium enterprises continue to increase from year to year. The high growth of MSMEs has a psychological impact in terms of employment, equitable development and its results, particularly in the economic sector and increasing gross regional domestic income.

But now business in the MSME sector is one of the sectors that has felt the impact of the corona virus outbreak (Covid-19). There are at least 3700 reports from cooperatives and micro small and medium enterprises affected by the corona virus outbreak (Kemenkop-UKM, Kompas 27 March 2020).

In dealing with the corona virus pandemic, the Minister of Cooperatives of UMKM invites all parties including the private sector, BUMN, and the community to help MSME entrepreneurs to remain productive. UMKM is no longer seen as an alternative business, but has been seen as the backbone / foundation of the country's economy in dealing with the current pandemic situation.

Problems experienced by MSMEs include declining sales turnover, difficulty in obtaining raw materials, impeded production and distribution, and difficulties in capital.

In order to anticipate that the business will remain productive, what needs to be done by MSMEs is to maintain sales by increasing online marketing, providing the best price by giving discounts, making full use of local products so as to minimize the cost of raw materials.

To overcome the difficulty of capital, SMEs can look for stimuli to help business continuity during a pandemic. Including obtaining capital assistance, so that production can still be done.

Some steps that can be taken by SMEs in order to start and maintain a business / business include product innovation based on community needs, maintaining product quality standards, and maximizing service and distribution.