Entrepreneurs More Skeptical in Responding to the Pandemic
The Kompas Research and Development survey showed that amid the pressures of the COVID-19 pandemic, entrepreneurs are more skeptical, cautious and have a larger number of concerns.
By
Agnes Theodora & Yohan Wahyu
·3 minutes read
JAKARTA, KOMPAS — The COVID-19 pandemic, which has been going on for almost a year and a half, has torn the social and economic life of the nation. The results of the Kompas Research and Development survey in July showed that groups of entrepreneurs or businesspeople seemed more skeptical in facing this pandemic than non-workers and workers.
The burden of the group of entrepreneurs is indeed twofold. Entrepreneurs must ensure that their businesses continue to run while still fulfilling the rights of their employees. The confidence level of this group to survive through the pandemic was reflected in the figure of 81.3 percent.
This figure, even though apparently high, is still lower than the confidence level of the other group of respondents. The non-worker group was recorded as having 88.8 percent confidence, and almost all of the workers group respondents believed they would pass the pandemic safely, or 93.6 percent.
The same pattern can also be seen from their opinions regarding solutions or ways to maintain income. The group of 202 worker and non-worker respondents tended to have higher scores, 67.8 percent and 57.9 percent, respectively, than entrepreneurs/businesspeople, with just 45.1 percent.
It is not surprising that in terms of tackling economic conditions, the entrepreneur/businesspeople group tended to be more careful and have a larger number of considerations. Efforts to find additional new income, use savings and even sell goods (assets) to meet their financial needs seemed to be quite dominant among the group of entrepreneurs.
In terms of saving, for example, 76 percent of respondents in the entrepreneur/businesspeople group said it was urgent to do so. For entrepreneurs, anything had to be done as a self-defense. All of this could not be separated from efforts to strengthen resilience in the face of this pandemic.
DIDIE SW
Didie SW
Survival phase
In line with the findings of the Kompas Research and Development survey, Indonesian Employers Association (Apindo) deputy chairperson Bob Azam said on Monday (26/7/2021), that the condition was severe and pessimism was felt by various business circles, both micro, small and medium enterprises (MSME) and large entrepreneurs. However, the most difficult challenges were faced by MSME entrepreneurs, who make up 99 percent of the total national entrepreneurs.
“At present, there are entrepreneurs who are facing a survival phase, some are entering a recovery period and some are thinking ahead. This indeed varies depending on the sector, but the majority of MSMEs are still in the survival phase," Bob said.
Despite being affected by the pandemic, large companies are generally still able to survive on their own. Some sectors have even been able to think ahead to innovate, such as the telecommunications and pharmaceutical sectors, which grew rapidly during the pandemic.
Therefore, according to Bob, the scheme and implementation of economic recovery policies in such critical times should be directed at MSME entrepreneurs and independent workers in the informal sector.
"The impact they felt was well reflected during the implementation of the recent emergency PPKM [public activity restrictions]," he said.
Meanwhile, Indonesian Micro, Small and Medium Enterprises Association general chairperson Ikhsan Ingratubun said MSME entrepreneurs basically only wanted one thing: a favorable business climate. However, he added, as long as the pandemic continues, the business climate would continue to be uncertain. He hoped that the current conditions would not be made more difficult with uncertain policies.
