JRSSEM 2023, Vol. 02, No. 7, 1303 – 1309

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

DOI : 10.36418/jrssem.v2i07.374 https://jrssem.publikasiindonesia.id/index.php/jrssem/index

THE EFFECT OF THE END OF THE COVID-19 OUTBREAK ON

THE ECONOMY OF MSMES IN SURAKARTA CITY

Farah Dina Eka Putri

Sapta Mei Budiyanto²

1,2

Faculty of Teacher Training and Education, University of Muhammadiyah Surakarta, Indonesia

e-mail: dinnafrh31@gmail.com, smb202@ums.id

*Correspondence: dinnafrh31@gmail.com

Submitted

: 10

January 2023

Revised

: 02

February 2023

Accepted

: 08

February 2023

Abstract: This study aims to determine the effect of the end of the Covid-19 outbreak on the

economy of MSMEs (Micro, Small and Medium Enterprises) in Surakarta City. This research method

is a qualitative method with a descriptive approach. Data were collected through participatory

observation, in-depth interviews and document studies. The informants in this study consisted of

MSME owners (Micro, Small and Medium Enterprises), MSME workers (Micro, Small and Medium

Enterprises) and other MSME (Micro, Small and Medium Enterprises) actors. The results showed

that the Covid-19 pandemic had a significant negative impact on the economy of MSMEs (Micro,

Small and Medium Enterprises) in Surakarta City. These vary, including a decrease in the income of

MSMEs (Micro, Small and Medium Enterprises), an increase in the unemployment rate, cancellation

of business projects, an increase in costs, a reduction in the number of employees, and an increase

in business bankruptcies. Proposed solutions to address this problem include social protection, tax

reduction, and infrastructure development. Hail's research is expected to provide important

information for the government, entrepreneurs and workers of MSMEs (Micro, Small and Medium

Enterprises) about the negative impact of the end of the Covid-19 outbreak on the economy of

MSMEs (Micro, Small and Medium Enterprises) in Surakarta City, and assist the government in

determining the right strategy to promote the economy of MSMEs (Micro, Small and Medium

Enterprises) in the regions.

Keywords: MSMEs (Micro, Small and Medium Enterprises); Covid-19; Economy.

Farah Dina Eka Putri

Sapta Mei Budiyanto² | 1304

INTRODUCTION

Community activities in Indonesia have

begun to stabilize after the end of the

Covid-19 outbreak which has been stealing

the limelight for the past 3 years. Many

people who used to work from home have

started working at work. And also school

children who have started teaching and

learning activities at school, as well as

students who have started activities on

their respective campuses. There have also

begun to be many traders who sell and run

their businesses again. The whole

community has started to carry out

activities as usual without being haunted by

anxiety about the covid-19 outbreak

Gradually, business actors began to

bounce back by being marked by returning

to normal activities after the Covid-19

pandemic subsided. The wheels of the

economy are also turning again and the

workers are also getting their wages to be

able to meet their daily needs. One of the

areas that shows significant development

in the business sector is Surakarta City.

Almost all business actors reopen their

businesses such as restaurants, stalls, shops

and others. If you look directly at the

movement of economic development after

the business sector returns to normal

activities after the Covid-19 pandemic

subsides. The Corona virus pandemic has

made business actors open businesses with

the target of increasing production so that

they can get more profits. On the other

hand, workers are also required to work

overtime in order to get overtime pay.

MSMEs must receive assistance and

attention after the covid-19 subsidence,

and the Surakarta government is also

working with Regional Apparatus

Organizations (ODP) to monitor and

advance the business sector of MSME

actors. The rise of the economy is now also

followed by changes in people's behavior

related to trade activities that rely on

Online.

This happened considering the

Covid-19 pandemic and face-to-face

restrictions and besides that it was also in

accordance with the times. It is also seen

now that many MSME players rely on

Online

marketing. This development is also

in accordance with the policy of the

Surakarta government which often

provides training and opportunities for

online marketing development through

local Regional Apparatus Organizations

(OPD) ((Pradanita Zahri et al., 2021)

The era of the global pandemic due to

the Covid 19 outbreak has been going on

for quite a long time, bringing many

negative impacts on the lives of people

around the world. As a result of the Covid

19 outbreak, economic activities

everywhere have been disrupted which has

caused many people to decide to stop their

various activities. This has also resulted in

many sectors of the economy experiencing

losses due to this pandemic. One of the

most affected sectors of the economy is

small and medium enterprises (MSMEs).

MSME is a business entity engaged in

various fields, such as services, production

and others. In Indonesia alone, the MSME

sector is recorded to be a source of

economic contribution of 58.6 percent. The

Covid-19 outbreak certainly has a big

impact on the MSME sector. Certain social

restrictions, such as restrictions on

movement and closures of various types of

businesses, will have a direct impact on the

1305 | The Effect of The End of The Covid-19 Outbreak On The Economy of MSMEs In Surakarta

City

SME sector. A number of policies that have

been implemented during the pandemic,

such as the ban on leasing trade loans, have

made entrepreneurs who rely on these

businesses also suffer losses. Like in all

parts of Indonesia, the impact of Covid 19

is also felt by entrepreneurs in Surakarta

City. Surakarta City is a fairly developed city,

based on socio-economic aspects recorded

by various national and international

rankings. However, Surakarta City is not

spared from problems that occur

throughout Indonesia, including due to

Covid 19 (Djatmiko & Pudyastiwi, 2020).

Along with the times, it plays a crucial

role in growth and economic development

to increase the income of a region in the

welfare of the people. The existence of

MSMEs has an important function for an

area, especially as one of the pioneers of

economic growth in the region. MSME

activities are one way so that regional

creative products can be recognized and

provide business opportunities for business

people in the regions. MSME players are

considered very important to increase per

capita income and improve the economy of

a region, so that MSME actors in the

regions are required to be able to

participate in developing the country's

economy, especially in developing the

economic growth of the city of Surakarta

(wika undari, 2021)

Based on the results of observations in

several MSMEs in Surakarta City, in its

implementation, several obstacles faced by

MSME actors were found, including: 1)

price competition between MSME players

and other MSME actors with the same

product. 2) limited capital owned by MSME

actors to innovate in developing their

products. 3) lack of understanding of

MSME actors in terms of their product

marketing strategies to be more widely

known by the community.

MATERIALS AND METHODS

This type of research is qualitative

research conducted with a case study

research design. The researcher acts as a

key instrument and human instrument. .

The research place used by researchers is

surakarta kidul square. The underlying

reason for this place was chosen as a

research event is that there is a

phenomenon of problems related to the

rise of MSMEs after the Covid-19 outbreak

in Surakarta City. As for the research time in

this thesis report, it will be carried out from

September 2022 to July 2023. The object of

this study is the area of the city square of

Surakarta. The subject to be examined is

MSME actors located around the Surakarta

Kidul Square area with different sales

criteria and different incomes to represent

the diversity of income in the community

around data collection techniques using

interview and observation techniques

conducted by researchers in obtaining data

on the economic impact that arises on

MSMEs after the end of the Covid-19

outbreak. From the results of interviews

and observations conducted by

researchers, data was obtained regarding

the circumstances that occurred after the

covid-19 outbreak subsided the economic

growth of MSMEs in Surakarta city. In

addition, data was also obtained on the

obstacles faced by MSME actors and how

MSME actors tried to face obstacles in

running their businesses after the Covid-19

Farah Dina Eka Putri

Sapta Mei Budiyanto² | 1306

outbreak subsided. The validity of the data

used in this study is source triangulation,

while data analysis techniques include data

collection, namely recording all the data

needed in this study, data reduction,

namely sorting out data in the form of a

description of the situation that occurred

after the covid-19 outbreak subsided the

economic growth of MSMEs in Surakarta

city, the presentation of data in the form of

a brief description of the obstacles faced by

MSME actors after subsiding the Covid-19

outbreak in the city Surakarta, and

Verification is the drawing of conclusions

supported by valid and consistent data so

that they can become credible conclusions.

RESULTS AND DISCUSSION

What is the situation after the easing of the

Covid-19 Outbreak on the economic

growth of MSMEs in Surakarta City

After Covid-19 ends, the situation of

MSMEs will gradually improve. They will

start to get back to doing business and

increasing their productivity. Despite the

difficulties faced by MSMEs today, many

governments have issued various programs

to help MSMEs develop and improve their

performance. The government has taken

the initiative to provide loans, training and

other support to help MSMEs through

these difficult times. In the future, MSMEs

will grow and become stronger with

government support(Sarmigi, 2020)

After the easing of the Covid-19

outbreak, the economic growth of MSMEs

in Surakarta City needs to be rebuilt.

MSMEs in Surakarta City will experience the

impact of Covid-19 in various forms.

MSMEs will have difficulty in earning

income, selling products, obtaining

business funds, and increasing their

productivity. With the aim of accelerating

the pace of economic growth of MSMEs,

most financial institutions and

governments have planned to provide

assistance. There will be business funding

assistance, capital assistance, working

capital credit, and manaagement

scholarships. In addition, the government

has also introduced various programs to

support MSMEs and in expanding their

customer base. For the period after Covid-

19, the MSME economy still needs a

significant increase. MSMEs in Surakarta

City must be outlined in charts to

understand the advanced market. MSMEs

must also innovate to increase productivity,

create added value and expand the

customer base. In addition, MSMEs must

also increase marketing efforts, information

dissemination, and product introduction.

This will help MSMEs increase their

economic income bulk. This will also help

MSMEs rebuild their economies after the

easing of the Covid-19 outbreak (Sugianti

(Sugianti & Sugianti, 2021).

the merchants in Surakarta City are

very grateful. They felt very relieved

because they were finally able to return to

doing business smoothly without being

disturbed by the obstacles caused by the

pandemic. Traders also hope that this

situation will provide new opportunities for

them to increase sales and grow their

business. With the end of the pandemic,

traders in Surakarta City also hope to

change their lives for the better by

increasing their income and service quality.

In addition, the merchants also hope to

implement some new marketing

1307 | The Effect of The End of The Covid-19 Outbreak On The Economy of MSMEs In Surakarta

City

techniques and business strategies to

increase sales. Although a number of

merchants have experienced a decline in

revenue, many of them have managed to

increase their sales through various

effective marketing and business strategies.

These strategies include leveraging social

media to offer products and services to

consumers, increasing promotions, and

creating discount schemes for

shoppers(PRATIWI, 2020). In addition, the

government has also taken steps to

support traders in Surakarta City by

providing financial assistance and

activating economic recovery programs.

The traders will experience developments

in various ways. They will strive to improve

adaptability, improve business skills,

expand the market, and improve marketing

capabilities. They will also try to increase

the durability of the market and have

flexible strategies to deal with various

situations. The merchants will also try to

increase initiative and creativity to increase

marketing and productivity. In addition,

merchants will try to build new networks to

expand their market and grow their

business.

Obstacles faced by MSME actors and how

MSME actors try to face obstacles in

running their business after the Covid-19

outbreak subsides

Even though the Covid-19 outbreak

has ended, based on the interview results,

MSME actors are still experiencing

difficulties. The price competition between

MSME players and other MSME players is

very tight. Because it has the same type of

product so that it causes quite fierce price

competition and also market competition

that is so difficult. Price competition

between MSME players and other MSME

players with the same product in Surakarta

City can occur in various ways. One way that

can be used is to sell products at a lower

price than competitors. This can be done by

lowering profit margins or using a more

aggressive sales strategy. In addition,

MSME players can also offer attractive

promotions, sell products with better

quality, and provide better customer

service to attract customers. Another

strategy that can be done is to increase

product offerings and carry out marketing

activities through social media. In this way,

MSME players can promote their products

to a wider range of customers and increase

their sales(Suminah et al., 2022)

MSME players can also compete by

improving the quality of their products. This

can be done using high-quality raw

materials, improving the quality of service

and expanding the range of services to

customers. In this way, MSME players can

make their products more attractive to

customers and increase their sales. In

addition, MSME players can also use the

right marketing and promotion strategies

to increase sales. The right marketing and

promotion can help MSME players increase

sales and attract new customers. MSME

players can do marketing through social

media, advertisements in print or television

media, and offer special discounts or

bonuses to customers.

MSME players can also increase their

service range and serve customers better.

This can be done by offering faster delivery

services, providing better customer service,

Farah Dina Eka Putri

Sapta Mei Budiyanto² | 1308

and increasing the range of services to

customers. In this way, MSME players can

easily promote their products to customers

and increase their sales(Purwanto, 2021). By

using the various strategies mentioned

above, MSME players can compete with

other MSME players with the same product

in Surakarta City. This strategy can help

MSME players increase sales and increase

their profits. It can also help MSME players

attract new customers and promote their

products to a wider range of customers.

Thus, MSME players can increase the

number of customers and increase their

business profits.

In conclusion, MSME players can

compete with other MSME players with the

same product by using various business

strategies. The chosen strategy must

consider production costs, marketing costs,

and other costs, as well as offer different

and up to date products and services to

meet customer needs and win price

competition with other MSME players with

the same product. By using the right

strategy, MSME players can win price

competition with other MSME players with

the same product.

CONCLUSIONS

Based on the results of research that

has been carried out, it can be concluded

that the end of the Covid-19 outbreak on

the MSME economy in Surakarta City has a

positive impact on the MSME economy in

Surakarta City. This shows that MSMEs will

develop and play an important role in the

economy after the Covid-19 outbreak ends.

MSME players must ensure that the

products and services they offer are always

evolving and up to date so that they can

meet customer needs and win price

competition with other MSME players with

the same product. By using the right

strategy, MSME players can win price

competition with other MSME players with

the same product. Therefore, the

government needs to increase support and

assistance to MSMEs so that they can grow

and develop in the future. this can be the

basis for the Surakarta government to

increase support for MSMEs and help them

to grow and develop after the Covid-19

outbreak ends. In addition, this research

can also be a consideration for other

governments in dealing with the impact of

the end of the Covid-19 outbreak on the

economy of MSMEs in their regions.

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under the terms and conditions of the Creative

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