A survey conducted by the Kompas Research and Development on 10-17 July, 2021, shows that entrepreneurs are less confident that they would get through the COVID-19 pandemic compared to non-workers and workers.
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KOMPAS EDITOR
·3 minutes read
Kompas/Hendra A Setyawan
Blind person Ahmad Hilmy Almusawa mixes coffee at his shop in the Pondok Cabe area, South Tangerang, Banten, Monday (26/7/2021). During the implementation of the restriction on community activities (PPKM), the coffee shop\'s income fell drastically by 90 percent and was forced to lay off its employees who are also people with disabilities.
Skepticism among entrepreneurs over their ability to survive the COVID-19 pandemic should receive special attention.
A survey conducted by the Kompas Research and Development on 10-17 July, 2021, shows that entrepreneurs are less confident that they would get through the COVID-19 pandemic compared to non-workers and workers. The number of the entrepreneurs who believe in survival is quite high, namely 81.3 percent of 839 respondents in 34 provinces. However, the number is still lower than that of workers and non-workers, which reached 93.6 percent and 88.8 percent, respectively.
The entrepreneurs are more skeptic because they have to think about their business sustainability, while at the same time, they also have to fulfill the rights of their workers. In addition, the optimism for economic recovery in early 2021 has also been affected by the surge in new COVID-19 cases. As result, the government has implemented emergency public activity restrictions (PPKM Darurat) in regions classified as red zones, or areas with high rates of transmission.
The Kompas Research and Development survey also shows a decline in the ability of respondents to buy investment goods, supporting goods and to save due to a drop in incomes. The survey also indicates that many respondents have drained their savings and sold their assets in order to raise additional incomes.
From several interviews conducted by Kompas with entrepreneurs and the people in the banking industry, it was revealed that the impact of the pandemic was relatively manageable among large businesses who survived the Asian financial crisis in 1998 and the global financial crisis in 2008.
However, according data published by the Cooperatives and Small and Medium Enterprises (SME) Ministry in 2019, the number of large businesses is only 5,637 or 0.1 percent of total businesses. Several business sectors have even be able to adapt to the new normal, especially the telecommunications and health and pharmaceutical sectors, by utilizing the internet and digital technology.
KOMPASTotok Wijayanto
Taslam colors a piggy bank made of gypsum at his house which doubles as a workspace in the Cipinang Melayu area, East Jakarta, Tuesday (20/4/2021). As an MSME actor that he has worked for for the last 35 years, Taslam has never received aid funds, either from the banking sector or the government.
We need to focus on the recovery of micro, small and medium enterprise (MSME), whose number is estimated to reach 65 million businesses. The government needs to ensure MSMEs that it is able to handle the COVID-19 pandemic systematically based on strategic approaches, including through vaccination programs.
We need to focus on the recovery of micro, small and medium enterprise.
From an economic perspective, the implementation of PPKM measures, which have been tightened since July 3, 2021, should not give the impression that it is only a matter of opening and closing the people’s activities and the provision of social assistance. The business world will be able to grow if there are opportunities and business certainty.
For some entrepreneurs, the mobility restrictions have created a business opportunity, especially those who can take advantage of e-commerce. However, the number of businesses who suffer is higher because of the logistic disruption, and the fall in demand have hampered their activities.
The government has relaxed a number of economic activities during the extension of the PPKM until 2 August, 2021. This relaxation should be used responsibly by the community and closely monitored by the government.
The Kompas Research and Development survey also shows that social capital is still strong in the community. Mutual trust and mutual care can build optimism in the business world, especially among MSMEs, which have the resilience to go through difficult times.
This article was translated by Hendarsyah Tarmizi.
