The impact of widespread covid-19 on small business venture in Aceh province: a recuperation strategy from entrepreneurs’ point of view

¹ Management Department, Syiah Kuala University, USK Darussalam Campus, Banda Aceh, 23111, Indonesia
² Master in Management Department, Abulyatama University, Unaya Lampoh Keude Campus, Aceh Besar, 23272, Indonesia

^* Correspondent author: syafruddin.chan@unsyiah.ac.id

Abstract

This study aims to analyse the real impact of the COVID-19 pandemic for small businesses and what recuperation strategy needs to be implemented from the perspective of business owners including opportunities for using digital business technology and what the business owner expects from government to help the recover. This research was conducted using a quantitative descriptive method. Data collected using online questionnaires, through various MSBE communities in Aceh. 150 questionnaires distributed using non-probability sampling. In addition, several interviews with respondents were conducted to gain insight into the impact of covid-19 on their business. The spread of Covid-19 did have a negative impact on the small businesses that were respondents in this study. The biggest impact is the decline in sales because the demand for its products and services is decreasing. As a result, employers did the downsizing of by decreasing their business scale, and laying off employees. Entrepreneurs also ask for debt restructuring in banking institutions to reduce pressure on the declining cash in the company. At the same time, companies are starting to use technology to enter digital businesses, including joining online applications and selling in e-markets more intensively.