SURVIVAL STRATEGIES FOR MSME’S DURING COVID 19 IN EAST JAVA INDONESIA

Abstract

Globally, the impact of Covid-19 has destructed business supply chains, dropped commodity prices, and increased the risk of global economic. Domestically in Indonesia, the impact of Covid -19 caused business closing, travel banning and reduction in discretionary spending. On September 2020, Bisnis Liputan6 highlighted Micro, Small and Medium Enterprises (MSMEs) as one of the main drivers of the economy in Indonesia (Liputan6.com, 2020). If the MSMEs sector is disrupted, the national economy will be also affected. Thus, this indicates the need for MSMEs to continue its operation. Suci (2017) emphasises the ability of MSMEs to survive during the crisis period of 1997-1998. The MSMEs were able to create millions of jobs until 2012. During the Corona Covid-19 pandemic, the MSME sector was most affected. Many of these entrepreneurs had to go out of business because demand fell. This study aims to identify MSMEs’ survival strategy and  business performance during Covid-19 in Surabaya, East Java Indonesia. This research is a quantitative approach.The data were collected using questionnaire survey. The population and sample in this study were MSMEs in Surabaya. Results indicate MSME believe that future online business is growing. The results also suggest  MSMEs must adapt and take advantage of technology and product and services innovation. MSMEs business strategy during a pandemic is to maintain existing market share. Overall results show that the survival strategies have effect on business performance.